The Hartford introduced an endorsement to its Manufacturers Protector Plan which provides a variety of coverage enhancements. The endorsement, called SPICE, Supplemental Property Insurance Coverage Endorsement, offers mid-to large-sized manufacturers higher limits and additional coverages in one package.
It includes: valuation of finished stock at the manufacturers' selling price, valuation of raw stock at the commodity's market value, coverage for precious metals, and protection for product contamination, which pays to replace contaminated stock and the costs to dispose of it. In addition, The Hartford's SPICE provides protection for business crime, control of damaged goods, equipment breakdown, and patterns, dies, molds, and forms.
The Manufacturers Protector Plan, introduced in early 1998, provides workers compensation, property, crime, general liability, commercial auto, umbrella and bond. It also features worldwide product liability, product recall expense, design errors and omissions, employment practices liability, and domestic and international ocean marine.
The Manufacturers Protector Plan and the new SPICE endorsement are available in every state except Alaska and Hawaii. They are offered exclusively through Poe & Brown Protector Network.
For more information, contact Tom Williams of Poe & Brown at (800) 282-0593.
Reliance covers earnings of publicly held companies
Reliance National introduced Enterprise Earnings Protection Insurance (EEPI), the first insurance policy specifically designed to protect publicly held companies against earnings disruptions, volatility and adverse results. EEPI combines property and casualty insurance with coverage for many financial, operational and business risks which traditionally have not been insured.
"The culmination of 15 months of research and analysis, EEPI is the first of a new generation of financially oriented insurance products that we will be launching," said Mario Vitale, president of Reliance National's Casualty Risk Services Division and the newly created Financial Risk Management Division. Vitale continued, "We see a growing demand for the type of highly sophisticated and customized solutions we are able to provide."
EEPI covers a wide range of circumstances that can negatively impact a corporation's earnings, such as a decrease in demand for goods and services; an increase in the cost of raw materials; supply chain or distribution problems; weather-related events; natural and man-made disasters; or other uncontrollable events that could increase expenses and/or reduce revenues and, in turn, cause a drop in earnings.
If an insured corporation misses its operating earnings target by a certain preset percentage due to losses covered by the policy, EEPI will provide a cash payment above a predetermined amount to cover the earnings shortfall.
By helping to reduce earnings volatility, EEPI can increase shareholder value and improve a company's ability to secure more favorable financing. EEPI programs also offer the potential for beneficial tax and accounting treatment of insurance premiums.
EEPI is a first-party, claims-made coverage that works in conjunction with a corporation's existing insurance programs and any underlying financial instruments utilized to hedge various risks. EEPI serves as an additional layer of protection against catastrophic property and casualty losses, while providing primary coverage for certain financial, operational and business exposures. The EEPI policy is underwritten on an "all-risk" basis.
Another important aspect of EEPI is thorough risk assessment prior to underwriting. Reliance National has formed an alliance with Strohl Systems Group, Inc., a consulting firm which provides business impact analysis and business continuity software. Strohl will identify and measure risk exposures throughout a business enterprise, and Reliance National will conduct detailed financial analyses to develop an accurate risk profile for each potential client. Additionally, Strohl Systems will supply EEPI insureds with comprehensive recommendations for reducing the probability of loss and minimizing the effects of business interruptions.
Reliance National also is partnering with Swiss Re as well as other major financial institutions to provide the high capacity and capital market structures necessary to support earnings protection insurance programs.
For more information about Enterprise Earnings Protection Insurance, call Myra Leigh Tobin, marketing director of Reliance National's Financial Risk Management Division, at (212) 858-3709.
Reliance has package for exporters
Reliance Insurance Company introduced a program called International Business Package covering the overseas risks of U.S.-based businesses. Designed to provide comprehensive coverage in a single customized package, International Business Package includes the following coverages: personal property, business income, crime, inland marine, transit, general liability, product liability, non-owned auto, workers compensation, and kidnap and ransom.
The package is designed for manufacturers that export products around the globe, as well as service providers, such as engineering and law firms, that do business abroad.
AAIS introduces farm umbrella program
The American Association of Insurance Services (AAIS) has developed a standard farm umbrella liability program of policies and manuals. They will be filed on an advisory basis in all states where the AAIS Farmowners or Commercial Liability programs are currently filed.
The new AAIS Farm Umbrella Program is designed to be used with the AAIS Farmowners Program, and includes the following:
* a personal umbrella liability coverage form (Farm) that can be used to add umbrella coverage over an AAIS personal liability form
* a commercial umbrella liability form for adding umbrella coverage over an AAIS commercial (Farm Premises and Operations) liability form. The commercial farm umbrella includes an option to add personal umbrella coverage by endorsement.
* a manual with advisory rules and rating information
As written, these forms offer standard bodily injury/property damage (BI/PD) coverage for an "occurrence" during the policy period (with standard exclusions) beyond the limits of the underlying GL policy or above a self-insured retention. In addition, the policies offer "follow form" coverage for employers liability, auto BI/PD, watercraft BI/PD, and personal/advertising injury in excess of the limits of underlying policies. AAIS offers companies optional services, including customizing and filing the manual, to allow them to determine their own criteria for eligibility, underlying limits and other features.
According to Joyce Tignino, AAIS vice president of marketing and industry relations, as farms consolidate into fewer, larger, more capital-intensive operations, their liabilities and the assets that need protecting are outgrowing the coverage offered by standard farmowners, auto, and other liability policies. Therefore, more and more insurers find that they need to offer a farm umbrella product. The AAIS Farm Umbrella Program will give them a more competitive package, the opportunity for additional premiums, and enhanced coverage for insureds.
The AAIS Farm Umbrella Program protects insurers from the risks of trying to write farm umbrella coverage using modified personal and commercial umbrella forms.
For more information on AAIS's Farmowners or Farm Umbrella Programs, contact Robert Schnoll, marketing manager, at (800) 564-AAIS. The AAIS Web site (www.aais.org) provides detailed information on AAIS farm insurance products.*
©COPYRIGHT: The Rough Notes Magazine, 1999