Larry France
If we analyze this class of business we see that, unlike with some classes, the economy can affect it positively going up or down. When residential or commercial clients take advantage of low interest rates to build new construction, that increases the contractors' payrolls and receipts--which affects premium dollars. They also may invest in their existing dwelling in order to make it more attractive to a prospective buyer with additions and improvements to the structure. If interest rates climb, homeowners or business owners may decide that, although they need additional space, the financial burden of a new purchase may not be one that they want to incur. The solution is to stay at the existing location and remodel or add square footage to accommodate the needs of a growing family or business.
In the first situation we will have general, electrical, plumbing and heating, excavating, and framing contractors--to name a few. In the case of additions or remodeling, the type of contractor could be an artisan contractor for the small projects or a general contractor for ones that involve excavation, design work, or environmental impairment.
The artisan contractor is probably the most common. This class may be simply carpentry NOC (not otherwise classified). Generally they are smaller operations that contract their skills out to larger contractors. They rarely subcontract work out themselves. Other trades that fall in this category are bricklayers, masonry, paint and paper, and air conditioning contractors. Risks that sub out more than 25%, as well as roofers, and excavation and landscape contractors, will not be eligible for the artisan programs.
Most carriers have decided what classes they will entertain for their book of business and have designed a package policy with enhancements that they hope will attract prospects. This may be small contractors that are offered "BOP" type policies up to very difficult classes that include pollution, demolition, design build (including design error), construction wrap up, marine, steel fabricators, and bridge and paint contractors.
General liability limits will start at $100,000 and go up to $50 million and higher depending on the carrier and individual risk. Bonds can be obtained up to $50 million, but a lot of background would be needed for that limit. This is an area where one of the three C's, capital, plays a major part in the underwriting of the risk. A client who requests that limit most likely would have had experience working on projects where such a limit would not present a problem.
Since we surveyed the market beginning in October, The Insurance Marketplace for the year 2000 has been compiled and distributed with the December issue of Rough Notes. Additional markets have been added to the 21 construction-related categories. There are 86 markets listed under artisan contractors alone. Other programs or coverages include architects professional liability, installation floaters, land improvement, scaffolding risks, asbestos abatement, and environmental contractor bonds.
Apollo General Insurance Agency, Inc.
19485 Sonoma Hwy.
Sonoma, CA 94585
Contact: Bob Elster
Phone: (800) 624-5829
Fax: (707) 996-7912
A program manager operating in all states offering $1million/$2 million for demolition contractors and contractors with gross receipts over $1,250,000. Auto, workers compensation, property, and contractor equipment also are available. A rated carriers are used.
Arrowhead General Agency, Inc.
402 W. Broadway, Ste. 1400
San Diego, CA 92101
Contact: Robert Young
Phone: (800) 903-5489
Web site: www.arrowheadgrp.com
An MGA operating in AZ and CA offering limits of $1million/$2 million for artisan contractor, no roofers, and commercial auto limits of $1 million CSL. Autos from one to any size fleets are considered--no livery or tows. A rated carriers are utilized to place business.
Bond Brokers, Inc.
6160 N. Cicero
Chicago, IL 60646
Contact: Craig Sherman
Phone: (888) 488-BOND
E-mail: tuffbond@aol.com
Web site: www.bondbrokersinc.com
A broker/MGA operating in all states offering limits of up to $30 million for various bonds. All carriers are A rated and treasury listed.
Brown&Riding
777 S. Figueroa St., Ste. 2550
Los Angeles, CA 90017
Contact: Chris Brown or Jack Smith
Phone: (213) 452-7060
Fax: (213) 452-7080
E-mail: cbrown@brownandriding.com
An E&S broker operating in AZ, CA, HI, NV, TX and WA offering limits of up to $250 million. Target markets include residential developers, general contractors, heavy trades, and wrap ups for public works contractors. Builders risk, umbrellas, pollution and design E&O also are available. Several A rated carriers are used to place business.
Burns & Wilcox, Ltd.
30833 Northwestern Hwy., Ste. 220
Farmington Hills, MI 48334
Contact: Home office for local branch
Phone: (800) 521-1918
An MGA/E&S broker operating in all states except AK, HI, MA, ME, NJ, NY and WA offering primary and excess limits of up to $25 million. Most risks will be considered. Contractors equipment and commercial auto also are written. Various A rated carriers are utilized.
Construction Equipment Insurance Services
5050 Quorum, Ste. 644
Dallas, TX 75240
Contact: Kathy Wilson
Phone: (972) 991-6719
Fax: (972) 991-6679
A program administrator and E&S broker operating in all states targeting construction equipment, crane & rigging, millwrights, and aerial reach. A rated carriers are used to place general liability, umbrella, inland marine, and workers compensation.
Continental/Marmorstein & Malone
P.O. Box 586
Paramus, NJ 07652
Contact: Bill Malone
Phone: (800) 932-0849
Fax: (201) 261-8922
Web site: http://www.ca-group.com
An E&S broker operating in New Jersey and New York offering limits of up to $50 million with primary and excess. Target markets include all artisan contractors including new operations, demolition/implosion contractors, drilling, blasting, wrecking, roofing, dredging, landscaping contractors including environmental coverages, and general contractors with 100% subcontracting--to name a few. Coverages are placed with 14 carriers.
Crusader Insurance Co.
23251 Mulholland Dr.
Woodland Hills, CA 91364
Contact: Mark Neiman
Phone: (800) 669-9800
Fax: (818) 591-9856
An insurer operating in CA, OR and WA offering limits of $1million/ $2 million targeting artisan contractors. No general or roofing contractors are written. Crusader Insurance Company is an A rated company.
Daigle & Associates, Inc.
P.O. Box 17
Clinton, MS 39060
Contact: Sam Mason, Ed Daigle, or Gail Snow
Phone: (800) 647-7660
Fax: (601) 924-4659
An MGA operating in all states except AK, HI and WY offering coverage on contractors' equipment for the forestry industry, road building, general contracting, agriculture, industrial risks, and landscaping operations. Coverage is placed with Sentry Insurance Company, an A rated carrier.
Firm, Inc.
385 Clinton Ave.
Wyckoff, NJ 07481
Contact: Stephen Bommer
Phone: (201) 891-9337
Fax: (201) 891-7931
Web site: www.firminsurance.com
An agency/MGA operating in all states offering up to $10 million in limits for cranes, equipment rentals, steel fabricators, welders and riggers. Bonding is also available. Various carriers are utilized.
First State Management Group, Inc.
150 Federal St.
Boston, MA 02110
Contact: John Moody, First Vice President
Phone: (617) 526-7600
Fax: (617) 526-0690
E-mail: john.moody@thehartford.com
Web site: www.firststate.com
An E&S insurance carrier operating in all states offering limits of $1million/$2 million on primary and up to $25 million on umbrella and excess. Target markets are all classes of contractors except blasting and residential developers. Contractors special broad form and named peril pollution coverage available. Pacific Insurance Company is the A rated carrier.
Freberg Environmental Insurance
1675 Broadway, Ste. 2210
Denver, CO 80202
Contact: Danelle R. Nielsen
Phone: (303) 571-4235
Fax: (303) 623-8101
E-mail: info@feinsurance.com
Web site: www.feinsurance.com
An MGA operating in all states offering $5million/$5 million and up for environmental engineers, consultants and contractors. General liability, professional liability, and contractor pollution liability are available. Gulf Insurance Company is the A rated carrier.
Frontier Pacific/ Insurance Company
101 W. Broadway, Ste. 700
San Diego, CA 98101
Contact: Dennis Gilbert
Phone: (800) 238-2100
Fax: (619) 515-5115
E-mail: dgilbert@ftr.com
An insurer operating in all states and Canada. Limits available from $1 million and up. Frontier Pacific is the A rated carrier. Other coverages include contracts subdivision license, permits and environmental risk.
G.A. Mavon & Company
10 W. Chicago Ave.
Hinsdale, IL 60521
Contact: Bill Wilson/E&S
Jim Davis/General Agency Brokerage (restricted agents only)
Phone: (630) 655-2400
Fax: (630) 654-4447
An MGA and general agent brokerage operating in Illinois. Limits are dictated by individual risk. Various E&S and carriers are used to place business.
Gateway Underwriters Agency
755 S. New Ballas Rd., Ste. 130
St. Louis, MO 63141
Contact: Barb Smeltz, Karen Memhardt, or Mike Ehrhardt
Phone: (800) 325-7652
Fax: (314) 567-4552
An MGA/E&S broker operating in IA, IL, KS, MO and NE offering limits of up to $5 million on primary and $5 million on umbrella. Target markets include general contractors, artisans, environmental, and demolition contractors. Oil/gas, aviation, marine industries, and surety bonds are not written. A rated carriers include Nautilus, Scottsdale, Western World, and First Financial. Inland marine, pollution coverage and commercial auto are also available.
Gerald J. Wilkoff, Inc.
95 Main St.
Mineola, NY 11501
Contact: Matthew Wilkoff, V.P.
Phone: (800) 85-BONDS
Fax: (516) 747-2021
A wholesaler of surety and fidelity bonds operating in all states and internationally. Limits of up to $50 million are available for contract, surety, commercial surety, financial guarantee, and both insured and third-party fidelity bonds. Various A rated and treasury listed carriers are used.
High Ridge Agency
P.O. Box 8209
Stamford, CT 06905
Contact: Tom Massotti
Phone: (800) 626-0007
Fax: (203) 322-3941
E-mail: highridgeagency@worldnet.att.net
An MGA/E&S broker operating in CT, NJ and NY offering open limits for artisan contractors. Commercial auto, workers compensation and bonding are available.
Insight Insurance Services, Inc.
4225 Naperville Rd., Ste. 265
Lisle, IL 60532
Contact: Susan Harker or Michelle Duffett
Phone: (800) 447-4626
Fax: (630) 505-1221
E-mail: sharker@insightinsurance.com
mduffett@insightinsurance
Web site: www.insightinsurance.com
An MGA, program administrator operating in all states except AK, HI, LA and VT offering limits from $100,000 to $5 million for architects and engineers professional liability. Surety and contractors coverage is not available. Safeco is the A rated carrier.
Izzo Insurance Services, Inc.
7234 W. North Ave.
Elmwood Park, IL 60707
Contact: Michael C. Jones
Phone: (800) 800-1704 (Outside IL)
(708) 452-1700 (In IL)
Fax: (708) 452-1700
An MGA/agency operating in all states targeting all classes except general, demolition, asbestos abatement contractors and oil and gas risks. Products consist of workers compensation and EPLI for contractors with limits of $1 million, $2 million for EPLI. Carriers include Great American, Legion, Frontier, Virginia Surety, and Casualty Reciprocal.
J.M. Wilson
8036 Moorsbridge Rd.
Portage, MI 49024
Contact: Mary E. De Vries
Phone: (800) 666-5692
Fax: (616) 327-5350
E-mail: mary-devries@jmwilson.com
Web site: wwwjmwilson.com
An MGA operating in FL, IL, IN, MI, OH and WI offering up to $35 million in limits. Target markets include SBA accounts, standard and nonstandard contract. All classes considered. Miscellaneous bonds, license and permit bonds, and fidelity and crime are available. Carriers include CNA, Western Surety, Aegis Security, Capitol Indemnity, National American Insurance, Amwest Surety, and Mountbatten Surety.
Jimcor Agencies
15 Ver Valen St.
Closter, NJ 07624
Contact: Coryn Mastowski, Ext. 125
Phone: (201) 784-8900
Fax: (201) 784-7901
E-mail: cmastowski@jimcor.com
Web site: wwwjimcor.com
An MGA/E&S broker operating in DE, MD, NJ, NY and PA offering limits of up to $25 million with higher limits upon request. Target markets include general contractors, HVAC, steel and iron erection, plumbing, scaffolding, crane operators, concrete, elevator contractors, installation service, and repair contractors, site preparation, electrical, renovation, and demolition contractors. Carriers include Admiral, Royal Surplus, Investors, Agricultural E&S, First State, Kemper, Scottsdale, Tudor, American Equity, Monticello, Essex, and U.S. Liability.
London American General Agency, Inc.
10085 Carroll Cyn Rd., Ste. 100
San Diego, CA 92131
Contact: Mark Maucere
Phone: (858) 547-9000
Fax: (858) 547-9199
An MGA/E&S broker operating in CA. Limits vary with the risk and carrier. Target markets range from artisan to general contractors. Casualty, property, inland marine, and commercial auto are available.
Metcom Excess
P.O. Box 3140
Cliffside Park, NJ 07010
Contact: Charles McCloskey, Sr., President
Phone: (800) 521-1717
Fax: (201) 945-0724
E-mail: metcomex@bellatlantic.com
An MGA/E&S broker operating in NJ, NY and PA offering $1 million on primary and up to $25 million on excess. Contractors equipment and EDP coverage is available. Carriers include American Equity, United Capitol, Hartford Casualty, First Specialty, AXA and Preferred National.
National Environmental Coverage Corp.
747 Chestnut Ridge Rd., Ste. 305
Chestnut Ridge, NJ 10977
Contact: Christina Holmes, President
Phone: (800) 552-0230
Fax: (914) 425-2853
Web site: www.necc.com
A program administrator operating in all states offering up to $10 million on CGL. Target market is environmental contractors for CGL, pollution liability and bonds. Various A rated carriers are utilized.
Pennock Insurance, Inc.
P.O. Box 2000
Chadds Ford, PA 19317
Contact: Cindi King or Sandy Piper
Phone: (800) 662-5182
Fax: (610) 358-3449
An MGA operating in DC, DE, NJ, MD, PA and VA offering up to $5 million on primary liability limits with up to $25 million on umbrella limits. All classes are considered except synthetic siding contractors. Inland marine, workers compensation and installation floaters are available. All carriers are A rated or better.
Quaker Special Risk
P.O. Box 415
Sea Girt, NJ 08750
Contact: Michael R. Walsh, AAI
Phone: (800) 447-4180
Fax: (732) 223-9072
E-mail: mwalsh@qsr-insurance.com
Web site: www.qsr-insurance.com
An MGA/E&S broker operating in CT, DE, FL, GA, MA, MD, NC, NJ, NY, NM, PA, RI, SC and VA offering primary limits of $2million/$2 million with excess available. Target markets include general, demolition, and environmental contractors. Various A rated carriers are utilized.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Gail Pierce, General Liability; Gabriel Derzhavets, Bonds
Phone: (800) 752-8402
Fax: (317) 776-6891
An MGA/E&S broker operating in IL and IN offering primary limits of $1/2 million and up to $20 million on excess. Most classes are considered including carpentry, plumbing, roofing, and environmental contractors. Carriers include American Equity, Century Surety, Commercial Casualty Insurance Company of Georgia, General Agents Insurance Company, Scottsdale, and Old Republic Surety.
Russell Bond & Company, Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Claude Grabski, ASLI, Ext. 146; Jeff Latke, ASLI, Ext. 147; Geri Johnson, CPCU, ASLI, CPIW
Phone: (800) 333-7226
Fax: (716) 856-0403
E-mail: cgrabski@rbcoins.com, jlatke@rbcoins.com, gjohnson@rbcoins.com, info@rbcoins.com
An MGA operating in New York offering limits starting at $100,000. Coverage offered includes CGL, inland marine, EPLI, workers compensation, umbrella, design E&O, pollution, and commercial auto. Various A rated or better carriers are utilized.
U.S. Risk Group, Inc.
10210 North Central Expressway, Ste. 500
Dallas, TX 75231
Contact: Monte Stringer
Phone: (800) 232-5830
E-mail: monte@usrisk.com
Web site: www.usrisk.com
An MGA/E&S broker operating in all states offering up to $50 million in limits. All classes and coverages are available. Various admitted and nonadmitted carriers are utilized.
Unifax Insurance Systems, Inc.
23251 Mulholland Dr.
Woodland Hills, CA 91364
Contact: Mark Neiman
Phone: (800) 669-9800
Fax: (818) 591-9856
An MGA operating in CA, OR and WA offering limits of $1 million/$2 million targeting artisan contractors. General and roofing contractors are not written. The A rated carrier is Crusader Insurance Company.
United Capitol Insurance Company
400 Perimeter Center Terrace, Ste. 345
Atlanta, GA 30346
Contact: Laura Wolfe
Phone: (800) 355-9429
Web site: www.unitedcapitolins.com
An insurer operating in all states offering up to $ 15 million in limits. Pollution liability and property are offered. United Capitol Insurance Company is an A rated carrier.
Universal Service Agency, Inc.
501 Office Center Dr., Ste. 128
Fort Washington, PA 19034
Contact: Susana Sallada
Phone: (800) 646-2401
Fax: (215) 646-4275
E-mail: sales@universalbonds.com
An agency operating in all states offering bond limits of up to $14 million depending on the risk and carrier. All classes of contractors are considered. Carriers include Amwest, CBIC, Frontier, CNA, Kemper, Chatham Reinsurance, Wausau, Crum & Forster, and Acstar.
Victor O. Schinnerer & Company
2 Wisconsin Circle
Chevy Chase, MD 20815
Contact: Gene Todaro
Phone: (301) 961-9800
Fax: (301) 951-5444
E-mail: info@schinnerer.com
Web site: www.schinnerer.com
An underwriting manager operating in all states offering up to $30 million in limits. Target markets are general and specialty contractors. Professional, pollution, and design liability are available. The A rated carrier is CNA.
Zurich Environmental
200 W. Adams, Ste., 1800
Chicago, IL 60606
Contact: Amy Curtis, Marketing Director
E-mail: amy.curtis@zurich.com
Web site: www.zurich.com
An insurer operating on a worldwide basis offering up to $50 million in limits. Environmental impairment environmental cleanup, asbestos and lead, casualty, closure/post closure, stop loss, and professional liability are offered. CNA is the A rated carrier. *
©COPYRIGHT: The Rough Notes Magazine, 2000