SPECIALTY LINES MARKETS
Special promotions present opportunities
By Larry G. France
Let's say a local charity is planning a special fundraiser in conjunction with a gathering of 5,000 people at a civic event or sports event being held outdoors in May. The charity decides to offer a $1 million prize to someone who can make a shot from half-court at a leased basketball court. The scenario presents at least three chances for agents to profit from placing coverage on this type of event.
A day in May should be a very nice day. But--what if during the hours that the charity has leased the basketball court it rains an inch and the event must be scheduled, and advertised again, and sustain other logistical losses? We turn to weather coverage to protect the charity from these financial losses.
That is a normal justification for weather coverage. But weather is being used in more sophisticated scenarios in today's market, for example, protecting utility companies against a loss in revenues caused by mild summers or, as has been the case recently, mild winters. What if due to a mild summer, a beer distributor has less than normal sales (it could happen), a sunscreen company's sales are down, and lemonade processors slow production? Weather schemes can be designed to lessen the financial blow to businesses that may depend on 85-degree days for more than half of their annual revenue.
The one key to proper placement of weather coverage is the wording of the contract. Where is the rainfall or snowfall measured? In most cases, the local weather bureau measures at the airport. If your event is being held some distance from the airport, the measurement should be at the event site. A prime example is Denver where the airport is about 25 miles from the downtown area.
What about that matter of the $1 million prize? Prize indemnification coverage is very common in half-court shots as well as hole-in-one, auto dealers key promotions, and hockey puck shots. In the case of the nonprofit charity, a $1 million prize payout would normally be paid in the form of an annuity that would pay the winner a sum of $50,000 per year for 20 years.
The list of possibilities to place prize indemnity coverage is limited only by the imagination of the client and provider of the protection. Commonplace exposures include national sweepstakes, sports contests, promotions involving the Internet and other media, and athletic incentive programs.
Here again it is critical that everyone concerned--including the participants and the buyer of the coverage--understand the contract wording. Who is eligible? How is the prize won? How is the money paid out? All exclusions must be spelled out. You don't want Tiger Woods as a contestant in a golf event.
Five thousand spectators will attend the charity event scenario mentioned earlier. They will park in a parking lot. They will sit in bleachers. Concessions may be available, as well as shirt and hat vendors. Security for the parking area, temporary or permanent bleachers, product liability for food, and certificates from the vendors are underwriting questions to be addressed.
This charity event is relatively standard in terms of special events. Larger events with crowds of more than 10,000 to 15,000 will be scrutinized more carefully by under-writing. The events of September 11 will make all future special events take a different approach to security.
This year's Motion Picture Academy Awards event featured many extra security measures. Roof-top law enforcement security positions were established and stricter guidelines for credentials were enforced. Another concern that has cropped up since September 11 is the possibility that water supplies might be chemically polluted when large crowds are in attendance. Emergency evacuation plans need to be looked at and updated in the event of a bomb threat. Secure a schedule of events. Too many times after the claim, it is discovered that activities were not disclosed and last-minute additions were not reported.
Diagrams and photos are extremely important. Signs that specify rules need to photographed. Security checkpoints and medical facilities also should be included.
Contracts and lease agreements need to be obtained to determine what liability the insured has accepted and if it is isn't normal for the type of event, adjustments can be made. Additional insured extensions need to be given attention so the carrier is not given coverage where it was not intended.
Animals can produce unexpected claims also. If the event is a parade, a startled horse pulling a float can bolt into the crowd causing injury.
Weather, prize indemnity, and special event coverages can also be door openers. If your prospect owns a trucking firm and sponsors an annual golf outing with a hole-in-one prize, you can increase the chances of writing the trucking account by providing the "one off" protection.
All three types of coverage will be discussed in depth at upcoming Specialty Lines Seminars sponsored by The Rough Notes Company and The Insurance Marketplace. The first will be held in St. Louis on May 15, followed by Denver July 30, Seattle August 13 and Tampa in December (exact date to be determined). Markets for more than 200 programs and coverages will be presented at these events. Details for the St. Louis seminar can be found on pages 140 and 141 of this month's issue.
Listings for markets that have responded to our survey and provide coverage for one or all three of the respective specialty products are as follows:
Agency Marketing Services
P.O. Box 41786
St. Petersburg, FL 33743
Contact: John Burniston, Ken O'Neill
Phone: (800) 542-2805
Fax: (727) 343-4123
Web site: www.agencymarketing.com
A wholesaler that operates in all states with limits of up to $2 million. Target market is fundraisers, conventions/events. Liquor (special events) also is offered. All carriers are A rated.
ASU International, LLC
500 Unicorn Park Dr.
Woburn, MA 01801
Contact: Marc Idelson, SVP underwriting; Mark L. Barry, SVP marketing
Phone: (800) 927-6306
Fax: (781) 994-6001
E-mail: mbarry@asui.com
Web site: www.asui.com
An MGA that operates in all states with varying limits by line of business. Target markets are high-limit disability for athletes, entertainers, high-net worth individuals, weather insurance, and event cancellation coverage. Hartford Life Insurance and Lloyd's of London are the carriers.
Bohrer, Croxdale & McAdoo, Inc.
P.O. Box 2760
Springfield, MO 65801
Contact: Marilyn Foster, Cecilia Early
Phone: Missouri and Kansas: (800) 779-2550 Arkansas: (800) 594-5101
Fax: Missouri and Kansas: (888) 869-2550 Arkansas: (800) 726-7707
An MGA operating in AR, KS and MO with limits of $1 million occurrence/ $2 million AGG. Will not consider rock concerts; inland marine also is offered. Various A rated or better carriers are used to place coverage.
Russell Bond & Co., Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Jeff Latke, ASLI (Ext. 147) Chris Moyer, ASLI (Ext. 149) Alan Hall (Ext. 150)
Phone: (800) 333-7226
Fax: (716) 856-0403
E-mail: info@russellbond.com
Web site: www.russellbond.com
An MGA/E&S broker operating in NY only with limits of $2 million/$3 million. (Higher limits are possible, depending on the event.) Target markets are social gatherings, exhibitions, dinners/dances, weddings, craft shows, trade shows, festivals/fairs, reunions, hole-in-one, dishing derbies and concerts. Also offered are GL, EL, LL, event cancellation and prize indemnification. All carriers are A rated or better.
Burns & Wilcox, Ltd.
30833 Northwestern Hwy., Ste. 220
Farmington Hills, MI 48334
Contact: Call 800 number for local branch
Phone: (800) 521-1918
An MGA/E&S broker that operates in all states except AK, HI, MA, ME, NJ, NY and WA with primary limits of $1 million/$2 million and excess of $10 million+. All classes are considered with LL and event cancellation/weather also offered. Various carriers are used.
Century Surety Group
2400 Corporate Exchange Dr., Ste. 290
Columbus, OH 43231
Contact: Tom Ross, RVP; Jim Murphy, casualty manager; Joe Bova, senior underwriter
Phone: (800) 878-7389
An insurer operating in most states with limits of $1 million. Will not consider rap concerts or motor sports events. Also offers excess.
Coverage Guarantee Association, Inc.
3515 Park Place West, Ste. 100
Mishawaka, IN 46545
Contact: Art Roberson, Jr., Lauren Roberson
Phone: (800) 242-7789
Fax: (574) 271-1747
E-mail: info@cgainc.com
Web site: cgainc.com
An agency/broker that operates in all 50 states with limits of up to $2 million. Other coverages are sporting events and Internet. All carriers are rated A or above.
Continental Bloodstock Agency, Ltd.
1818 Versailles Rd.
Lexington, KY 40504
Contact: Richard Grossman
Fax: (859) 255-7506
E-mail: dick@equineinsurance.com
Web site: www.equineinsurance.com
An MGA/agency that operates in all states with limits of $5 million. Target markets are special events, promotions, tournaments, equine liability. Spectator coverage also is offered. Various A rated admitted and surplus lines carriers are used to place coverage.
Continental/Marmorstein & Malone
P.O. Box 586
305 Rte. 17
Paramus, NJ 07652
Contact: Bill Malone
Phone: (800) 932-0249
Fax: (201) 261-8922
E-mail: bmalone@ca-group.com
Web site: www.ca-group.com
An MGA/E&S broker operating in NJ and NY with primary limits of $1 million/$2 million and excess available up to $10 million. Higher primary limits are available depending on the risk. Coverage is provided for all types of special events, with liquor liability for special events also offered. Carriers are Burlington, Essex, American Equity, Western World, U.S. Liability/Mt. Vernon, Nautilus and Chubb Custom.
Crump Insurance Services, Inc.
7557 Rambler Rd., Ste. 350
Dallas, TX 75231
Contact: Rajan Shah, VP
Phone: (800) 522-7867
Fax: (214) 691-5460
Web site: www.crumpins.com
An E&S broker that operates nationwide with limits of up to $100 million. Will offer GL property, umbrella and WC. Various A rated carriers are used.
Francis L. Dean & Associates
P.O. Box 4200
Wheaton, IL 60189
Contact: John Dean
Phone: (800) 745-2409
E-mail: jdean@fdean.com
An MGA that operates in all states with limits of up to $6 million. Specializes in sports-related events, tournaments, camps, and clinics. Also offered is accident/medical coverage for event participants, staff and volunteers. Various A rated or better carriers are used.
Entertainment Brokers International
10940 Wilshire Blvd., 17th floor
Los Angeles, CA 90024
Contact: Bill Cody
Phone: (310) 824-0111
Fax: (310) 824-5733
Web site: www.EntBrokersIntl.com
A managing agent that operates in all states with limits of $30 million. Will cover motion picture, amateur/professional sports leisure (racing, concerts). Will not write prize indemnification. A rated or better carriers are used.
Event Insurance Brokers, LLC
19 Fulton St., 3rd floor
New York, NY 10038
Contact: Roy E. Hjelm
Phone: (888) 289-2112
Fax: (212) 766-2045
E-mail: roy@eventsinsurance.com
Web site: www.eventsinsurance.com
An agency that operates in states east of the Mississippi with limits of $1 million and above--with approval. Target markets are conventions, benefits, parties, performances, festivals, etc. Will not write rap or heavy metal. Also offered are GL, umbrella and some property. Carriers are A rated or better.
J.P. Everhart & Company, Inc.
11910 Greenville Ave., Ste. 400
Dallas, TX 75243
Contact: Customer Service Department
Phone: (800) 527-6944
Fax: (972) 808-9012
E-mail: hio@hio.com
Web site: www.hio.com
An MGA/agency that operates nationwide with limits of up to $1 million. Target market is hole-in-one, with weather also offered. Republic Underwriters and Republic Vanguard are the A rated carriers.
Gagliardi Insurance Services, Inc.
2380 S. Bascom Ave., Ste. 200
Campbell, CA 95008
Contact: D.C. Gagliardi, Nicolas Gagliardi, Tom Pederson
Fax: (408) 377-0655
E-mail: dcgagliardi@insuranceforsports.comngagliardi@insuranceforsports.com
Web site: www.insuranceforsports.com
An agency that operates in all 50 states. Target markets are sports associations and leagues, special events, professional sports organizations, college and universities. Will also offer GL and accident/medical. Carriers are AIG, Lumbermens Mutual, St. Paul and Gulf.
Global Weather Insurance Agency, Inc.
475 Northern Blvd., Ste. 30
Great Neck, NY 11021
Contact: Pat Sleicher
Phone: (516) 466-3138
Fax: (516) 466-5307
E-mail: psleicher@globalweatherinsurance.com
Web site: www.globalweatherinsurance.com
An MGA that operates in all states, plus DC with limits as needed. Will offer weather insurance for special events and promotions. The B rated or above carriers are Legion and Jewelers Mutual.
Good Weather Insurance Agency, Inc.
76 Lafayette St.
Salem, MA 01970
Contact: Laurie Tillman, President
Phone: (800) 324-7759
Fax: (978) 741-8786
E-mail: ltillman@goodweather.net
Web site: www.goodweather.com
A national program manager that operates in all states with limits of $1 million. All commercial risks are considered. Will also offer weather insurance. Royal SunAlliance is the A rated carrier.
H.W. Gorst Co., Inc.
805 Fairmont Ave.
Glendale, CA 91203
Contact: Al Karp, Randy Scott, David Rabinowitz
Fax: (818) 507-1133
Web site: customerservice@gorst.com
An MGA that operates in CA only with in-house limits of $3 million/$3 million. Target market is special events with liquor liability also offered. Scottsdale, Fulcrum and Western Heritage are the A rated or above carriers.
Hole In One International/Odds On Promotions
6195 Ridgeview Ct., Ste. A
Reno, NV 89509
Contact: Mark Gilmartin
Phone: (800) 827-2249
Fax: (775) 826-4653
E-mail: hioi@hioi.com
Web site: www.hioi.com
A purchasing group that operates in all states with limits of $1 million. The Insurance Corporation of Hannover is the A rated carrier.
Hull & Company, Inc.
2150 S. Andrews Ave.
Ft. Lauderdale, FL 33316
Contact: Chris Hull (Ext. 257)
Phone: (800) 678-4855
E-mail: info@hullco.com
Web site: www.hullco.com
An MGA/E&S broker that operates in CA, CO, FL, HI, KS, MO, MN, MT, NC, NE, NM, OR, SC, SD, TX, VA, WA and WY, with limits of $1 million. Various A rated carriers are used.
Insurance Innovators Group
130 S. Easton Rd.
Glenside, PA 19038
Contact: Etty Herzig, Janet Barton
Phone: (800) 523-6422
Fax: (215) 886-2482
E-mail: etty@iiigroup.com
janet@iiigroup.com
Web site: www.iiigroup.com
An MGA/E&S surplus lines broker operating in CT, DE, MA, MD, NJ and PA with both primary and excess limits. Target markets are amateur sporting events, concerts, lectures, trade shows, auctions, reunions, festivals, hole-in-one and social gatherings. Will also offer GL and LL. Various A rated or above carriers are used.
K&K Insurance Groups, Inc.
Events & Attractions Division
1712 Magnavox Way
Ft. Wayne, IN 46804
Contact: Dale Johnson
Phone: (800) 553-8368
Fax: (260) 459-5624
E-mail: KK_EventsAttractions@kandkinsurance.com
Web site: www.kandkinsurance.com
A managing general underwriter operating in all states and Canada with GL limits of up to $5 million and property of up to $10 million. Target markets are most classes of special events, short-term events, festivals/fairs, trade shows, one-time celebrations, parades, exhibitions, meetings and promotional activities. Also offered are volunteers as additional insureds, contingent ride liability, vendor/exhibitor coverage, legal liability to participants and fireworks liability. Great America Assurance is the A rated carrier.
H.R. Keller & Co., Inc.
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: John Barton, Rob Martin
Phone: (800) 424-2202
Fax: (716) 874-4920
A wholesaler that operates in NY only with limits that vary by company. Will consider all types of special events. Admitted, A rated carriers are used.
M.J. Kelly Co., Inc.
4415 E. Sunshine
Springfield, MO 65809
Contact: Lori Drake, Shawna Cooke, Heather Duffield
Phone: (800) 725-7211
Fax: (417) 883-7103
E-mail: ldrake@mjkelly.com
Web site: www.mjkelly.com
An E&S broker that operates in AR, IL, KS, MO and OK with limits of up to $2 million/$2 million. Will consider small accounts, weddings, fairs, etc. Liquor liability coverage also is offered. Various A rated or above carriers are used.
Lemac & Associates, Inc.
600 City Pky., West, Ste. 240
Orange, CA 92868
Contact: David Gorin, VP
Phone: (714) 938-0251
Web site: www.lemacassociates.com
An MGA that operates in CA only with limits of up to $1 million+. Nautilus, Great Divide and American Equity are the A rated carriers.
London American General Agency, Inc.
P.O. Box 919243
San Diego, CA 92191
Contact Greg Liewald
Phone: (858) 547-9000
Fax: (858) 547-9188
E-mail: gliewald@londonamerican.com
Web site: www.londonamerican.com
An MGA/EUS broker that operates in CA only with market capacity limits. Target markets are hole-in-one tournaments, concerts, price indemnification, contests, amusement devices and fairs. Major admitted and nonadmitted A rated carriers are used.
Market Finders Insurance Corp.
P.O. Box 6549
Louisville, KY 40206
Contact: Karen Cornett, Charlene Curry, Susan Hudgins
Phone: (800) 626-5660
Fax: (502) 426-7970
E-mail: info@mfic.com
Web site: www.mfic.com
An MGA/E&S broker operating in IN, KY, NC, OH, SC, TN and WV, with limits of $1 million/$2 million. Western World, Burlington, Colorado Western, Indian Harbor and Essex are the carriers.
McSweeny Agency
505 High St.
Burlington, NJ 08016
Contact: Richard McSweeny
Phone: (609) 387-0101
Fax: (609) 387-7171
Web site: www.mcsweeny@bellatlantic.net
An MGA/E&S broker operating in NJ and PA only with limits of $5 million. Special event liquor coverage is available. Annual policy is subject to scheduled event dates. Various A rated carriers are used to place coverage.
Metcom Excess
596 Anderson Ave., Ste. 301
Cliffside Park, NJ 07010
Contact: Charles McCloskey, Jr.; Paul Alloco; Sandy Koval
Phone: (800) 521-1717
Fax: (201) 945-0724
Web site: www.metcomexcess.com
An E&S broker operating in NJ and NY only with limits of $1 million plus excess. Will offer liquor liability. American Equity, preferred National, Burlington and First Financial are the A rated or better carriers.
National Hole-In-One Association
11910 Greenville Ave. #400
Dallas, TX 75243
Contact: Customer Service Department
Phone: (800) 527-6944
Fax: (972) 808-9012
E-mail: hio@hio.com
Web site: www.hio.com
An MGA/agency operating in all states with limits of up to $1 million. Target market is hole-in-one; will also offer weather. Republic Underwriters and Republic Vanguard are the A rated carriers.
North Island Facilities, Ltd./NIF Pro
30 Park Ave.
Manhasset, NY 11030
Contact: Anthony Buonpane, Candace Murray
Phone: (800) 892-8892
E-mail: marketing@nifgroup.com
Web site: www.nifgroup.com
A general agent operating in the eastern U.S. with primary limits of $1 million, plus umbrella. Will not write rap concerts, or mosh pits. All carriers are A rated or better.
NorthCoast Excess & Surplus, Inc.
2244 East Enterprise Pky.
Twinsburg, OH 44087
Contact: Jeff Burke
Phone: (330) 405-9890
Fax: (330) 405-9893
E-mail: ncoastxs.com
An E&s broker operating in OH only with primary limits of up to $1 million/$2 million, plus umbrella. Will not write rock, rap, or heavy metal concerts. Various A rated nonadmitted carriers are used.
Richter-Robb Pacific Insurance Services, Inc.
310 Sun West Place, Ste. C
Manteca, CA 95337
Contact: Nancy Dean
Phone: (800) 454-4343
E-mail: rrobb@inreach.com
An MGA/E&S broker operating in CA, CO and OR with limits of $1 million/$2 million occurrence. Will offer liability. Fulcrum, Colony and Western Heritage are the carriers.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Gail C. Pierce, Scott Sackers
Phone: (800) 752-8402
Fax: (317) 776-6891, 92
E-mail: scott.sackers@roushins.com gail.pierce@roushins.com
Web site: www.roushins.com
An MGA that operates in IL, IN and OH with customary limits of $50,000 (higher available). Target markets are concerts, golf tournaments, fishing contests, fireworks displays, special events, sports event sponsors, conventions and trade shows. Will also offer liability: premises/operation, products/completed operations, personal/advertising injury, fire damage, medical payments, $1 million/$2 million CGL. GL offered up to $25 million (with excess). Scottsdale, Century, Markel, Reliant American are the A rated carriers.
SCA Promotions
8300 Douglas Ave., Ste. 625
Dallas, TX 75225
Phone: (888) 860-3700
Fax: (214) 860-3723
E-mail: info@scapromo.com
Web site: www.scapromotions.com
An agency that operates worldwide with limits of up to $1 billion annuity. Will offer Internet promotions and over-redemption. North American Specialty and Lexington (an AIG company) are the A rated or better companies.
Robert A. Schneider Agency
5620 Smetana Dr.
Minnetonka, MN 55343
Contact: Jody Stolp
Phone: (952) 938-0655
Fax: (952) 938-0701
Web site: www.rasinc.com
An MGA/E&S broker that operates in IA, MN, ND, SD and WI with limits of $2 million. All classes are considered. Will also offer property, inland marine and weather-related coverages. Penn America, Essex, Nautilus and American Equity are the A rated carriers.
S.H. Smith & Co.
41 N. Main St.
West Hartford, CT 06107
Contact: Jeff Parmenter
Phone: (800) 356-0168
Fax: (860) 561-3606
E-mail: jeffp@shsmith.com
Web site:www.shsmith.com
An E&S broker operating in New England only with limits of $10 million. Target markets are hole-in-one and weather. Will also offer weather cancellation. Northland/Gulf, Nautilus, AIG and Admiral are the carriers.
SUREBET Prize Indemnity Corp.
P.O. Box 46548
Tampa, FL 33647
Contact: Albert Elia
Phone: (800) 658-2931
E-mail: sales@surebet.org
Web site: www.surebet.org
An MGA/E&S broker operating in all 50 states with limits of $1 million. Target markets are auto dealers, retail stores, golf tournaments, promoters. Travelers of IL and Lexington are the carriers.
Surplus Insurance Brokers Agency. Inc.
P.O. Box 749
South Bend, IN 46624
Contact: Carol Dhoore, Maraha Salwin, Sean Urbanski
E-mail: cdhoore@surplusins.com
An MGA operating in IN only with limits of $1 million. Will not write hot air balloon rides or carnival rides. Will offer rain insurance. Scottsdale, Interstate, Capitol Indemnity and Northfield are the A rated or better carriers.
United Brokers, Inc.
P.O. Box 1243
New Albany, IN 47151
Contact: Crystal Burns
Phone: (800) 444-4824, Ext. 112
E-mail: crystalb@ubinc.com
An MGA that operates in GA, IN, KY, OH and TN with limits of $5 million. Will offer exhibition floaters and GL. Penn America, U.S. Liability, Acceptance and Markel are the B rated or better carriers.
Western World Insurance Co.
400 Parson's Pond Dr.
Franklin Lakes, NJ 07417
Contact: Timothy P. Hochkeppel, VP
Fax: (201) 847-1010
E-mail: t.hochkeppel@westernworld.com
Web site: www.westernworld.com
An insurer that operates in all states with limits of $1 million/$2 million. Will offer GL and property but no liquor liability. Western World and Tudor are A rated carriers.
Yates & Associates Insurance Services
Santa Ana branch:2100 E. 4th St., 2nd floor Santa Ana, CA 92705 Contact: Alex Zardeneta Phone: (800) 660-1125 Fax: (800) 378-8588 E-mail: Jhippard@yates-assoc.com Web site: www.yates-assoc.com
Stockton branch: 2423 W. March Ln. Ste. 202 Stockton, CA 95207 Contact: Dick Burns Phone: (800) 464-7042 Fax: (800) 472-7043 E-mail: rmestayer@yates-assoc.com Web site: www.yates-assoc.com
An MGA/wholesale E&S broker operating in CA only with limits of up to $3 million. Will not write rap or heavy rock concerts. Will also offer exhibition floaters and event cancellation. Genesis, American Equity, Scottsdale, Hanover, and Essex are the A rated or better carriers. *