TECHNOLOGY
CoverageFirst.com provides access to
specialty coverages and other services
By John Maes
CoverageFirst.com executives are (left to right) Wally Bryce, program developer; Dustin Davis, managing director; and Chip Bacciocco, technical director.
An array of products and services for agents has been paraded to the World Wide Web the last few years, but who has brought the better mousetrap to the marketplace? CoverageFirst.com considers itself in a position to make that claim. CoverageFirst says the features of its e-commerce portal and its single contract appointment capability set it apart from competing insurance dot-coms.
CoverageFirst provides access for independent agents to any of the
15 different specialty coverage programs as well as connections to wholesalers, varied insurance support services and an industry news and information center all in one Web site, says Dustin Davis, managing director.
It's also a sort of shopping mall distribution channel for MGAs to showcase their programs to any number of the 6,000 currently registered retail agents.
Agents who need specialty insurance--even in a hurry--can go right to any of the CoverageFirst niche programs and, with just a few clicks, be on the way to applying for the needed coverage. Sometimes quotes are returned within minutes, Davis explains.
Agents not having a clue as to where a needed specialty market might exist can link up with the site's Wholesale Brokerage Center (WBC) where wholesalers will answer questions, help them search for a market or route submissions to potential carriers, Davis says.
But CoverageFirst's strongest suit is that the contract and appointment process happens only once, not every time you deal with a different MGA or wholesaler, according to Davis. "We've totally re-engineered the way an agent registers or becomes appointed with an MGA or wholesaler," Davis explains. "One agreement, one copy of licenses, one copy of E&O, one set of background questions and you have access to all the products."
CoverageFirst is part of Arthur J. Gallagher & Co.'s Risk Placement Services, Inc. (RPS). Dave McGurn, president of specialty marketing and international for Gallagher's Brokerage Services Division, agrees that the blanket appointment process of CoverageFirst is its biggest advantage for agents. "By registering, you automatically enter into a contract with everyone providing products; so you only need one contract. Otherwise, you have to enter into 25 separate contracts and search a lot harder for specialty coverages in any number of a different places," he says.
CoverageFirst started in 1999 as the brainchild of Wally Bryce of Gallagher's Tulsa, Oklahoma, office who developed the program for Risk Placement Services, Gallagher's wholesale brokerage operation. Since then, some 6,000 retail agents and about 15 MGAs have become registered and CoverageFirst is being used by brokers of all stripes. "The largest brokers in the world down to the smallest shops are using us," Bryce says.
Many agents like to use CoverageFirst specialty lines to plug holes in existing programs, Davis says. "We've set out to be a solution for specialty and hard-to-find coverages," he says. "An ad agency can be insured in the traditional markets but what is hard to cover is when the owner buys an 80-foot yacht and the agent says, 'I've got it covered,' but in reality he has no idea of what to do with it. He's got to look for a wholesaler to help him place that business." The agent logs into the CoveragePro section of the site's Wholesale Brokerage Center, provides a few lines of information about the risk and the query is fielded by a wholesale expert who comes back quickly with an answer and potential market solutions, Davis explains.
MGAs can also benefit by using CoverageFirst to network their products to independent agents, according to McGurn. MGAs figure largely in growth plans for CoverageFirst and Risk Placement Services, he says. "You've got a collective audience of up to 6,000 agents and it opens up these huge networks for you. If an MGA has a successful program in Colorado and wants to take it to five other states but doesn't have the built-in infrastructure or sales network for it, you can network it with CoverageFirst and all these agents in other states become your potential sales people."
Wally Bryce developed CoverageFirst in 1999 for Risk Placement Services, Arthur J. Gallagher & Co.'s wholesale brokerage operation.
MGAs can use the site to look up and contact any of the registered agents, or to check the credentials and profiles of agents who have submitted applications online, says Chip Bacciocco, technical director. "When you take applications, you can look in great detail at the information about the agent who has just called you and see, for example, if he has proper E&O insurance," he explains.
MGAs can also benefit from the cross-selling opportunities of the CoverageFirst site, according to Tom Laden, program administrator for Storage First, one of the specialty coverages. "More and more agents are going to the CoverageFirst portal looking for specialty coverages and someone looking for aircraft hangar insurance is also going to see Storage First," Laden says.
Following are the programs to be found through CoverageFirst:
* National Hangar Insurance Program, a property coverage package for airport hangars, contents and the equipment owned by fixed-base operators at general aviation airports.
* Aviation First, which insures liability and workers comp risks for private and corporate aircraft, airlines and airport services, construction, fixed base operations, helicopters and non-owned equipment liability.
* Storage First, a property/liability program for owners of self-storage facilities. The program also covers workers comp and commercial auto in most states.
* Marine First, for operators of maritime passenger vessels. Marine and commercial general liability as well as commercial auto and property coverages are available.
* Silicon Insurance, a selection of high-tech industry coverages such as Internet liability, intellectual property and errors & omissions coverages.
* Vacant Property, a program for insuring commercial and residential properties while they are unoccupied.
* Surety First, a source of surety bonding for contracts, court appearances, fidelity, fiduciary, notary publics, public officials and tax preparers.
* PremierTemps, offering workers comp coverage for temporary staffing companies.
* Billiards First, a program for property, general liability, commercial auto and workers comp risks for owners of billiards parlors.
* Tower Erectors, a package of workers comp, business auto, umbrella and property transit coverages for members of the National Association of Tower Erectors.
* LibraryFirst, a program for public libraries offering property/liability, workers comp, library E&O and employment practices liability coverages.
* Jet Ski First, for physical damage liability, medical payments, and water ski liability for owners of Jet Ski watercraft.
* Executive First, designed to provide D&O, employment practices, fiduciary, fidelity and Internet and media liability along with kidnap/ransom coverages for executives.
* Church First, which provides all-lines coverage (except workers comp) for non-denominational churches and ministries.
* Charity First, which provides all lines for nonprofit and social services organizations such as substance rehab and counseling centers.
Jack Rowe, vice president of Huntleigh McGehee, Inc., in St. Louis, who is using the national hangar program to fill out an aircraft/hangar owner account, says he likes the way CoverageFirst responds quickly. His inquiry came back within days, complete with a quote and information on terms, limits and conditions. "Without even asking, I got all the information I needed to break down the risk," he says.
Rowe, who had been seeking quotes well in advance of a December 1 renewal on that account, saw CoverageFirst's reply weeks ahead of any competitors.
Ernie Joiner, owner of Joiner-Sigler Associates in Waynesboro, Mississippi, was recently able to place a long-haul trucking risk via CoverageFirst and Risk Placement Services that he otherwise might have struggled to find a market for. "They came back with a market within about a day or two," Joiner says. WBC's chat room, where he was able to get answers to several questions, was also of great assistance, he says. "You give them the classification, what you're looking for, information about the account, ask for their recommendations and you get the answers."
Joiner now has set his sights on acquiring new accounts among some loss-ridden, hard-to-insure local school districts in Mississippi with CoverageFirst and RPS helping him locate the markets quickly. "I wouldn't have called on some of those accounts before because I didn't have a market," Joiner explains.
McGurn wants to see CoverageFirst grow into an even larger e-commerce platform that not only will take applications and provide rate quotes electronically, but will issue policies online as well. "It may be five years away, but that's the ultimate dream." *
The author
John Maes is a Chicago-area freelance writer.
For more information:
Web site: www.coveragefirst.com