By Larry France
Several entities make up this niche--not just the county courthouse. Cities, counties, townships, towns, and villages are the hubs of these target markets. Inside those broad categories are power plants, hospitals, fire, water, school districts, museums, libraries, law enforcement, airport authorities, and boards of directors of fairs to name a few.
In most cases, these can be part of the general liability package. The use of monoline policies can be considered for several reasons, among which are the availability of adequate coverage required and the separation of potential higher exposure risks that may impact the primary liability package such as concerts, sports events, and waste disposal operations where pollution is a factor.
The comprehensive general liability policy may include coverage for personal and bodily injury and define the insured to include the named municipality or other public entity, as well as additional insureds, officials, servants, and employees of the entity. Both occurrence and claims-made forms are utilized in the marketplace. Liability limits start at $1 million. Capacity is not a problem as markets have indicated up to $50 million is not uncommon.
Public officials liability protects a public official who is elected or appointed to a legally constituted public entity. As a D&O type of coverage it provides direct coverage to the official or to the entity for legal liability arising from wrongful acts occurring while the official in question is in office. Board members, city and county council members, airport authorities, and park districts are prime examples.
Public utilities are a strong candidate for separate policies due to the expertise needed to underwrite the inherent exposures and the large property values concentrated in one location. Even in today's market, capacity can be difficult for certain risks. Some carriers will offer DIC and builders risk to supplement fire and E. C. perils. Other coverages to offer would be improvement and betterments, including furniture and fixtures, sprinkler leakage, and newly acquired property. Some packages will contain these enhancements but limits may apply.
Recent events involving the New York Police Department have spotlighted incidents dealing with civil rights violations. It should be noted that the NYPD doesn't have an exclusive on these incidents. Police professional liability covers the law enforcement agency of any political subdivision including all full-time and part-time officers. Coverage protects against third-party suits or claims for bodily and personal injury (including legal defense), for false arrest, erroneous service of civil papers, false imprisonment, libel, slander, defamation of character and assault and battery involving an arrest. This coverage is not available to the individual officer. Some pre-paid legal plans designed for law enforcement address this issue on an individual basis. Key features to look for are occurrence vs. claims-made, coverage for intentional acts, moonlighting, assault and battery, in the line of duty death benefit, and outside defense cost.
Educators professional liability coverage provides the school district with protection from lawsuits brought against school board members, faculty, student teachers, and volunteers for acts, errors and omissions or bodily injury due to corporal punishment. Underwriters look at enrollment figures, prior coverages, teacher-student ratio, and management experience of the school district.
Departments or divisions within the public entity to consider are DOT (Department of Transportation) parks and recreation, prison/jail facilities, street and roads, fire departments, and sewage treatment plants. Some markets will automatically include needed extensions of the primary general liability policy. Those may include liquor for short events, herbicide/pesticide, pollution, EMT errors and omissions, and volunteers. Some limitations may apply.
In today's private sector, outsourcing is prevalent, and government entities are no exception. Incarceration institutes, 911 services, and medical facilities come to mind. Markets exist to accommodate these exposures on stand-alone policies. When working in this area, place major importance on hold harmless agreements, stacking of limits, and additional insureds.
"A piece of pie is better than no pie at all." Many governmental risks are securing coverage to cover overages of the annual budget. One good example is snow removal. Several scenarios can be utilized to trigger a claim. The entity would be reimbursed a predetermined amount of money if a specific snowfall exceeded the average annual snow fall, or if "X" number of inches fell in a specified period of time. There are several ways to establish weather-related coverages that will indemnify the client that exceeds its existing snow removal budget. It can also open doors to the package policy.
Most of the markets in this niche provide loss control services which will lower cost to the client and assist the risk manager in maintaining a quality program. Some risks are capable of managing a SIR (self-insured retention). Markets exist that specialize in providing excess over the retained limits.
Responses to our survey of markets that provide coverages and services for the public entities are as follows:
Agency Marketing Services
P.O. Box 41786
St. Petersburg, FL 33743
Contact: Ken O'Neil/ Stephanie Hays/ Denise Linden
Phone: (800) 542-2805
Fax: (727) 343-4123
E-mail: koneil@agencymarketing.com
shays@agencymarketing.com
dlinden@agencymarketing.com
An MGA/E&S broker operating in the Southeastern U.S. and providing up to $3 million on primary limits, up to $50 million on excess or umbrella, and up to $10 million on public officials. Target markets include municipalities, districts, authorities, and public entity boards. Rain insurance, event cancellation, special events, and liquor liability also are written. Various A rated admitted and nonadmitted carriers are utilized.
Arlington/Roe & Company, Inc.
8465 Keystone Crossing
Indianapolis, IN 46240
Contact: Ronni Swift
Phone: (800) 878-9891
Fax: (317) 259-4106
E-mail: rswift@arlingtonroe.com
An E&S broker operating
in all states offering up to
$10 million on liability limits. Target markets are large municipalities to individual trustees. Packages and individual policies are written. Carriers include National Casualty, General Star Indemnity, Coregis, and Northland.
Bolton & Company
1045 Starks Bldg.
Louisville, KY 40202
Contact: Greg Allgeier
Phone: (800) 292-6597
Fax: (502) 584-6131
Web site: wwwBoltonMGA.com
An MGA operating in IL, IN, KY, OH and TN, offering up to $5 million in limits. Law enforcement and public official coverages also are available. Various A rated carriers are used to place business.
Burns & Wilcox, Ltd.
30833 Northwestern Hwy.,
Ste. 220
Farmington Hills, MI 48334
Contact: (800) 521-1918 for local branch office
Fax: (248) 932-9000
E-mail: email@burnswilcox.com
Web site: http://burnswilcox.com
An E&S broker operating in all states except AK, HI, MA, ME, NY and NJ, and providing up to $15 million in limits. Public official and police professional coverages also are written. Various carriers are used to place coverages.
Continental/Marmorstein & Malone
P.O. Box 586
Paramus, NJ 07652
Contact: Bill Malone
Phone: (800) 932-0849
Fax: (201) 261-5100
Web site: http://www.ca-group.com
An E&S broker/special risk underwriter operating in NJ, NY
and PA, offering limits of up to
$10 million for municipalities, schools/school boards, housing authorities, commissions, votech schools, colleges and universities.
A rated Coregis Insurance Company is the carrier.
Cooney, Rikard & Curtin, Inc.
1 Metroplex Dr., Ste. 400
Birmingham, AL 35209
Contact:
Kim Townsend
Phone: (800) 824-1709
Fax: (713) 532-4121
An E&S broker operating in most states except LA and FL, offering up to $25 million on limits. Target markets include schools, cities, and counties. A rated carriers are utilized to place coverage.
GoPro Underwriting Managers, Inc.
7401 Beaufont Spring Dr.
Richmond, VA 23225
Contact: Mike Arledge
Phone: (800) 368-3583
Fax: (800) 972-5345
E-mail: info@GOPRO.com
Web site: www.GOPRO.com
An MGA operating in all states except AK and HI, offering up to
$1 million on liability for public officials, law enforcement, EPLI, public entities and umbrella. Scottsdale, an A rated carrier, is used to place coverage.
Leonard, Andrew, Thomas & Laine, Inc.
912 Charlevoix, Ste. 120
Grand Ledge, MI 48837
Contact:
L. John Wenglarski, CPCU
Phone: (800) 413-8848
Fax: (517) 627-02511
An MGA in IL, IN, MI, OH and WI for public, private, charter, and K-12 school districts. TIG is the carrier utilized to place coverage.
M.J. Kelly Company, Inc.
4415 E. Sunshine
Springfield, MO 65809
Contact: Lori Drake
Phone: (800) 725-7211
Fax: (417) 883-7103
An MGA operating in AR, FL, GA, IA, IL, KS, MO, OK, TN, UT and WA, offering limits of $1 to $5 million. St. Paul Fire & Marine Insurance Company is the A rated carrier.
Millennium Insurance Group
510-B Turner St.
Thomasville, NC 27360
Contact:
Sheila Warner/Bob Adams
Phone: (336) 476-0010
Fax: (336) 476-0018
An MGA operating in AL, AR, GA, MS, NC, and SC, offering up to $10 million in limits. Target markets include cities, towns, counties, and special districts. Public official, law enforcement, and professional liability also are written. A rated carriers Gulf Insurance and Kemper Insurance are utilized to place coverages.
National Insurance Professionals Corporation
1040 NE Hostmark St., Ste. 200
Poulsbo, WA 98370
Contact: Becky Accardo
Phone: (800) 275-6472
Fax: (360) 697-3688
Web site: nipc.com
A program administrator operating in AZ, CO, ID, MT, ND, NE, NM, NV, OR, SD, UT, WA and WY and offering $1 million on primary limits and up to $10 for excess coverage. Target markets are small to medium-sized public entities which include cities, counties, fire, school, water, sewer districts and most other special districts. United National Group, an A rated carrier, is utilized to provide an admitted market.
North Island Facilities, Ltd./NIF Services
103 Spring Valley Rd.
Montvale, NJ 07463
Contact: Tony Kaprowski, President, NIF Governmental Services, Inc.
Phone: (800) 691-5903
Fax: (201) 391-5959
An MGA operating in all states except CT, FL and RI. Limits of up to $11 million are offered. Target markets are all sizes of municipalities including state governments. Included are special districts such as water and sewage. Snow removal, public officials, and law enforcement liability also are available. The Acceptance/Redland Insurance Company is the A rated carrier.
PENCO
P.O. Box 305107
Nashville, TN 37230
Contact:
Doug McLaughlin, Sr., V. P.
Phone: (800) 473-6261
Fax: (615) 872-3530
Web site: www.penco.com
A wholesale program administrator operating in all states except AK and HI, offering limits of up to $2 million on primary and up to $15 million on excess liability. Target market includes cities, counties, fire, water, irrigation, sanitation, and other special districts. The Hartford and ACE USA are the A rated carriers.
Princeton Risk Managers, Inc.
201 Wall St., Research Park
Princeton, NJ 08540
Contact: Jim Griffith/ Audrey Tate
Phone:
(800) 582-7607(inside NJ)
(800) 776-0099 (outside NJ)
Fax: (609) 924-8155
An E&S broker operating in CT, NJ, NY and PA, offering up to
$100 million in limits. Target markets include municipalities, schools, utility and housing authorities, and county governments. Public official, school board, and police professional also are written.
A rated or above carriers include Coregis, General Star, Genesis, United National, and Interstate.
Professional Governmental Underwriters, Inc.
P.O. Box 35471
Richmond, VA 23235
Contact: Martin Kanipe,
CPCU, President
Phone: (800) 586-6502
Fax: (804) 272-7852
E-mail: mkanipe@pgui.com
Web site: www.pgui.com
A managing underwriter providing up to $5 million in limits Public officials and police professional liability is available on an admitted basis in AL, CT, GA, IL, IN, KS, MA, MO, NH, NJ, NY, OH, PA, TN, VA, VT and WI. School board legal liability is written on an admitted basis in AL, GA, NJ, NY, and PA. Both programs are available on nonadmitted paper for all states. A rated carriers include Hanover Insurance Company, United National Group, and Old Republic Insurance Company.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Gail Pierce/Tony Armor
Phone: (800) 752-8402
Fax: (317) 776-6891
An MGA operating in IL and IN, offering up to $20 million in limits. Most public entities can be placed, Other coverages available include public officials and law enforcement. National Casualty Insurance Company and Scottsdale Insurance Company, both A rated, are the carriers.
Russell Bond & Company, Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Jeff Latke, ASLI, Ext. 147
Geri Johnson, CPCU, ASLI, CPIW, Ext. 144
Phone: (800) 333-7226
Fax: (716) 856-0403
E-mail:
jlatke@rbcoins.com
Gjohnson@rbcoins.com
An MGA/ E&S broker operating in NY, offering coverage for police professionals, public officials, health care professionals, and school board legal as well as public entities. Limits will vary by line of business. Various A rated carriers are utilized to place coverages.
S.H. Smith & Company
41 N. Main St.
West Hartford, CT 06107
Contact: John Buckley
Phone: (800) 356-0168
Fax: (860) 561-3606
E-mail: johnbcshsmith.com
Web site: inquires@shsmith.com
An MGA operating in CT, MA, ME, NH, RI and VT, and offering limits of up to $25 million for towns, cities, counties, and water and school districts. Gulf Insurance Group is the A rated carrier.
St. Paul Fire & Marine Insurance Company
385 Washington St., MC 503P
St. Paul, MN 55102
Contact: Jennifer Wolf
Phone: (800) 356-4098, Ext. 7915
Web site: www.St.Paul.com
An insurer operating in all states except AK and HI. Target markets include cities, counties, special districts, authorities, transit authorities, and Indian nations. Limits will vary by coverage and class of business. Public officials and law enforcement liability is also available. St. Paul is an A+ rated carrier.
S.J. Petrakis Insurance Services, Inc.
555 California St., Ste. 1800
San Francisco, CA 94104
Contact: Steve Petrakis
Phone: (415) 433-1926
Fax: (415) 433-2026
An underwriting manager operating in AK, AR, AZ, CA, CO, GA, HI, ID, IL, KS, KY, MD, MI, MN, MO, NE, NM, NV, OR, PA, TN, TX, UT, VA, WA, WI and WY, offering limits of up to $50 million. Target markets include cities, counties, townships, boroughs, and school and transit districts. Royal Specialty Insurance is an A rated carrier.
States Self-insurers Risk Retention Group, Inc.
920 Second Ave., Ste. 700
Minneapolis, MN 55402
Contact: David Drugg, President, John Podobinski, ARM, and David Daugherty
Phone: (800) 640-0345
Fax: (612) 376-4291
E-mail: jpodobinski@berkleyrisk.com
An insurer providing excess liability up to $20 million in limits over SIRs of $100,000 and higher if fully insured program. States is a member-owned company and is rated B++. Target markets include public entity, cities, counties, school district, and law enforcement. Programs can be tailored to cover federal claims only. Members receive claims and loss control services as part of the program.
Surplus Insurance Brokers Agency, Inc.
P.O. Box 749
South Bend, IN 46624
Contact: Carol Dhoore
Phone: (800) 342-5706
Fax: (219) 578-7758
An MGA operating in IN, offering $1 million in limits for public entities. National Casualty is the A rated carrier.
Swett & Crawford Group, Corporate Headquarters
21650 Oxnard St., Ste. 1600
Woodland Hills, CA 91367
Web site: http://www.swett.com
An E&S broker/MGA operating in all states and territories. Various A rated or above are used to place governmental and public entity risks. Limits up to $20 million are available; no limitations on type of public entity.
Branch offices are as follows:
Fresno, CA
Contact: Ron Stone
E-mail: ron_stone@swett.com
Phone: (559) 227-3535
Los Angeles, CA
Contact: Lori Hunter
E-mail:lori_hunter@swett.com
Phone: (213) 439-3400
Newport Beach, CA
Contact: Mike Foley
E-mail: mike_foley@swett.com
Phone: (949) 737-7354
Denver, CO
Contact: Kent Strong
E-mail: kent_strong@swett.com
Phone: (303) 755-5775
Miami, FL
Contact: Gloria Sasturain
E-mail: gloria_sasturain@swett.com
Phone: (305) 461-8508
Atlanta, GA
Contact:
James Vaccarelli/Priscilla Brott
E-mail: james_vaccarelli@swett.com or priscilla_brott@swett.com
Phone: (404) 240-5200
Boise, ID
Contact: Bruce Loeppke
E-mail: bruce_loeppke@swett.com
Phone: (208) 376-1161
Minneapolis, MN
Contact: Linda Caruthers
E-mail: linda_caruthers@swett.com
Phone: (612) 333-0361
New York, NY
Contact:
Gary Ricker or Amanda Oliva
E-mail: gary_ricker@swett.com or amanda_oliva@swett.com
Phone: (212) 493-7394;
(212) 791-9745
Cincinnati, OH
Contact: Cynthia Renske
E-mail: cynthia_renske@swett.com
Phone: (303) 762-7626
Portland, OR
Contact: Pete Feeney
E-mail: pete_feeney@swett.com
Phone: (207) 774-3857
Philadelphia, PA
Contact: Mike DeStefano
E-mail: mike_destefano@swett.com or nancy_gillespie@swett.com
Phone: (215) 576-1500;
(610) 891-7171
Seattle, WA
Contact: Mike Hamby
E-mail:
mike_hamby@swett.com
Phone: (206) 441-7938 *
©COPYRIGHT: The Rough Notes Magazine, 1999