SPECIALTY LINES MARKETS
Insuring special events, promotions and prize indemnification
By Larry G. France
Recent perceived and real threats to gatherings of people have put underwriters on the alert. Such was the case at this year's NCAA tournaments where all spectators were "wanded." Taking precautions is prudent--but can we take enough? Some markets think not. With "re-thinking" of underwriting futures, many carriers have decided to forgo the special events niche. Several factors have caused an exodus of players: losses (even prior to 9/11), lack of capacity, and carrier rating problems. Try to place coverage on an event that will attract more than 10,000 spectators--placing and pricing that risk will consume a very good part of your week. Depending on the activity, placement may not be feasible.
The problem of security
Security is a major concern today. It is a problem because we really don't know what we need to secure against. Where and how will an event be threatened? Threats really do exist but we don't know how to underwrite an unknown exposure.
In addition, you may find that because of the current state of the economy, there will be fewer events to write. Budget cutbacks make it more difficult to obtain, and events face greater cost of security and insurance.
But, hey, let's write some "fun stuff." Prize indemnity and promotions are fun and allow you to use your imagination in putting together scenarios for your clients.
The problem of weather
Weather insurance isn't just rain insurance. It can be utilized to offset losses when governmental units exceed their budgets in the event of, for example, a heavy snow season--which many of us experienced this past winter. Merchants' costs of overstocking winter items such as snowblowers, apparel, and rental equipment, can also be covered. Snow accumulation can be offered.
LauraLee Tillman of Good Weather Insurance Agency says that as businesses learn how weather insurance can stabilize income and contain cost increases, purchase of that coverage is increasing. "While historically used by events of one or more days, other seasonal exposures such as golf courses and restaurants are increasing their use of weather coverage," she explains. Regarding available markets, Tillman says that as underwriting markets harden, there are fewer underwriters today than even one year ago.
Innovation and fun
Being able to bring new tools to your client or prospect is fun (and you receive a lot fewer "no's" from underwriters). Prize and promotion coverage is very innovative. There are very few ideas that can't be put together with the proper pricing and controls.
IC Group, Inc., a provider of online promotions technology, insurance and risk management expertise, is an example of how to provide fun for the client as well as employees. The company was recently engaged by a marketing and promotions firm to put together an online program aimed at educating the employees of the Bank of Montreal.
The Web-based program was called "Commitment to Customers." Employees were encouraged to complete up to six modules containing company branding-related questions and fun facts. Each time the employee completed an online learning module, he or she received an online select-and-win game that offered the chance to win a series of Bank of Montreal prizes. This accomplished the bank's goal of educating its employees through the creation of a fun vehicle.
According to a March 2002 study by the SITE Foundation, the research arm of the Society for Travel and Incentive Executives, incentives can improve employees' performance by 27% for individuals and 45% for teams.
Ideas for prize and promotional prospects are endless. SCA Promotions designed a holiday promotion for Shoe Carnival's 208 stores that was aimed at bringing in shoppers during a tough retail market. Shoe Carnival had conducted this particular promotion the previous year; not only did they decide to run it again, but they also doubled the prize. The day after Thanksgiving, each store gave customers a ticket stub as they entered. At 7:00, 8:00, and 9:00 a.m. one ticket number was announced. The chosen contestant then pulled a card out of a box that was decorated to look like a present. Each card revealed a gift ranging from a DVD player, to a dome tent, to a grand prize of $10,000. There were three grand prize winners in the first hour. The word spread about the contest, which filled the stores for the other drawings. The success of this promotion kept Shoe Carnival in the public eye long after Thanksgiving. Do you think that traffic will be brisk next year?
Other ideas include auto dealers' direct-mail programs, baseball toss and tagged fish challenge.
Look for clients or prospects who want to increase traffic in their stores, fill a stadium, increase entries for a contest or educate their employees. Your innovative ideas can place you in a position to write other lines of coverage.
Companies that provide this type of coverage are more than willing and able to consult with you in developing ideas that will appeal to clients.
The following entities have responded to our survey indicating that they are a market for special events liability and/or prize indemnity and promotion.
For additional information, log on wwwinsurancemarketplace.com for markets in your state or province.
Bohrer, Croxdale & McAdoo, Inc.
P.O. Box 2760
Springfield, MO 65801
Contact: Marilyn Foster, Grace Cumley, Sharon Bradley
Phone: (IL, KS, MO) (800) 779-2550 (AR) (800) 594-5101
An MGA/E&S broker that operates in AR, IL, KS and MO with limits of up to $1 million. Will offer property, inland marine and auto. All carriers are rated A or above.
Burns & Wilcox, Ltd.
220 Kaufman Financial Center
30833 Northwestern Hwy., Ste. 220
Farmington Hills, MI 48334
Contact: David J. Price, Ken Laderoute, Wayne Bates
Phone: (800) 521-1918
An MGA/E&S broker that operates in all states except AK, HI, NH and NY with special events liability limits of up to $5 million and prize, weather, etc., of up to $500,000. Target market is smaller events, such as hole-in-one. Not interested in concerts and airshows. Lloyd's and Scottsdale are the A rated or better carriers.
CGA (Coverage Guarantee Association, Inc.)
3515 Park Place W., Ste. 100
Mishawaka, IN 46545
Contact: Lauren Jones, Art Roberson, Jr.
Phone: (800) 242-7789
Fax: (574) 271-1747
E-mail: info@cgainc.com
Web site: www.cgainc.com
An MGA/E&S broker operating in all 50 states. Target market is prize indemnity. All carriers are rated A or above.
CNA Insurance Companies - E & S Division
3500 Lacey Rd., Ste. 8000
Downers Grove, IL 60515
Contact: Pat Jarrett
Phone: (630) 725-4750
Fax: (630) 725-4771
E-mail: pat.jarrett@cna.com
An insurer that operates in AL, AZ, CO, CT, FL, GA, IA, IL, IN, MA, ME, MI, MN, MO, NC, ND, NJ, NH, NM, NY, PA, RI, TX, UT and VT with limits of $1 million. This division provides liquor liability, including special events. Will not consider high-hazard risks, e.g., rock concerts, auto races, etc. CNA Companies' Columbia Casualty is the carrier.
Continental Bloodstock Agency, Ltd.
1818 Versailles Rd.
Lexington, KY 40504
Contact: Richard Grossman, President
Phone: (859) 233-1818
Fax: (859) 255-7506
E-mail: dick@equineinsurance.com
Web site: www.equineinsurance.com
An agency operating in all states with limits that depend on the specific program. Will not consider non-supervised rides. Can offer medical in some instances. Colorado Western is the carrier.
Delaware Valley Underwriting Agency, Inc.
420 S. York Rd.
Hatboro, PA 19040
Contact: Frank Seigel
Phone: (800) 388-0215
Fax: (215) 672-7983
E-mail: info@dvua.com
Web site: www.dvua.com
An E&S broker that operates in MD, NC, NJ, OH, PA, SC, VA and WV with limits of up to $1 million. Target markets are air shows, demonstrations, pyrotechnics, amusement parks/devices, motorized events, and political rallies. Can also offer CGL and liquor liability for special events. Various A rated or better nonadmitted carriers are used to place coverage.
Entertainment Brokers International
10940 Wilshire Blvd., 17th fl.
Los Angeles, CA 90024
Contact: William M. Cody
Phone: (310) 824-0111
Fax: (301) 824-5733
E-mail: william.cody@entbrokersintl.com
Web site: www.entbrokersintl.com
An MGA operating in all states with limits of $50 million. Target markets are concerts, special events, racing and sports. Will not write prize indemnity insurance. Will also offer auto liability, GL, property, inland marine, and contingency liability. Clarendon America and Clarendon National are the carriers.
Francis L. Dean & Associates, Inc.
1776 S. Naperville Rd., Ste. 101B
Wheaton, IL 60187
Contact: John Dean
Phone: (800) 745-2409
Fax: (630) 665-7294
E-mail: jdean@fdean.com
An MGA that operate in all states with limits of $1 million/$2 million, plus up to $5 million excess GL. Target market is sports-related special events only. Currently is not writing prize indemnification or weather coverages. Various A rated carriers are used to place coverage.
Gagliardi Insurance Services, Inc.
2380 S. Bascom Ave., Ste. 200
Campbell, CA 95008
Contact: D.C. Gagliardi, Nicolas Gagliardi, Connie Campbell
Phone: (800) 538-7061
Fax: (408) 377-7781
Web site: www.insuranceforsports.com
An agency that operates with limits of $1 million. Most classes are considered. Clarenden and St. Paul are the A rated or better carriers.
Gateway Underwriters Agency
755 S. New Ballas Rd., Ste. 130
St. Louis, MO 63141
Contact: Barbara Smeltz, Donna Schaefer
Phone: (800) 325-7652
E-mail: barb.smeltz@gua-stl.com donna.schaefer@gua-stl.com
An MGA operating in IL, KS and MO with unlimited limits. Target markets are hole-in-one, basketball shoots, parties, concerts (rain okay), and special events (pop and gospel only). Will offer liquor liability for special events. The A rated or better carriers are USLI, Nautilus, Western World, National Fire, Scottsdale and others.
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 agency that operates worldwide with unlimited limits. Target market is any indoor or outdoor event that has a weather exposure. Commerce & Industry, and Lloyd's are the A rated or better carriers.
Good Weather Insurance Agency, Inc.
27 Congress Street, Ste. 108
Salem, MA 01970
Contact: LauraLee Tillman, President
Phone: (800) FAIR-SKY (324-7759)
Fax: (978) 741-8786
E-mail: ltillman@goodweather.net
Web site: www.goodweather.net
A national program manager that operates in all states with limits of $1 million per day. Target markets are sports (baseball, soccer, golf, rodeos, tennis), leisure (fairs, festivals), recreation (concerts, plays, films, photo shoots)--weather insurance only. Carriers are Royal & SunAlliance and certain underwriters at Lloyd's, all rated A or above.
H.R. Keller & Co., Inc.
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: Rob Martin, John Barton
Phone: (800) 424-2200
A general agency/wholesaler operating in NY state only with limits that vary by company. Target market is special events only. Several carriers are used to place coverage.
H.W. Gorst Co., Inc.
9310 Topanga Canyon
Chatsworth, CA 91311
Contact: Fran Locke, Arnel San Diego, Randy Scott
Fax: (818) 507-1133
An MGA that operates in CA only with limits of $3 million/$3 million, can offer liquor liability. Scottsdale, Colony, and Western Heritage are the carriers.
Hull & Company, Inc.
2150 S. Andrews Ave.
Ft. Lauderdale, FL 33316
Contact: Jaime Cuadrade
E-mail: info@hullco.com
Web site: www.hullco.com
An MGA/E&S broker that operates in CA, CO, FL, HI, KS, MO, MT, NC, NE, SC, TX and VA with limits of $500,000 and up. Target markets are special events and hole-in-one. Various A rated carriers are used to place coverage.
IC Group, Inc.
383 Dovercourt Dr.
Winnipeg, MG R3Y IG4
Canada
Contact: Scott LaCroix
Phone: (800) 575-5590
Fax: (204) 489-7900
E-mail: info@icgroupinc.com
Web site: www.icgroupinc.com
An agency and binding authority holder with locations in the U.S. and Europe. Available limits are $1.75 million. Can offer coverage on sales promotions, over-redemption coverage for coupons, rebates, etc., performance bonuses, and money-back offers. Lloyd's of London is the A rated carrier.
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 broker operating in CT, DE, MA, MD, NJ and PA with primary and excess GL limits available. Target markets are amateur sporting events, concerts, lectures, trade shows, auctions, reunions, festivals, hole-in-one, and social gatherings. Can also offer GL and liquor liability. All carriers are rated A or above.
J.M. Wilson
8036 Moorsbridge Rd.
Portage, MI 49024
Contact: Cathy Baldwin
Phone: (800) 282-8113
Fax: (269) 327-2620
E-mail: cbaldwin@jmwilson.com
Web site: www.jmwilson.com
An MGA operating in IL, IN, KS, MI, MO, OH and WI with limits of $5 million. Will not write amusement park rides. Can offer liquor liability and prize indemnification. All carriers are rated A or above.
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 in all states with limits of up to $1 million. Can offer weather coverage. Republic Underwriters and Republic Vanguard are the A rated carriers.
Jacobs & Associates
8227 Brecksville Rd.
Brecksville, OH 44141
Contact: Beth Jacobs, Jim Jacobs, Vince Momosor
Phone: (440) 838-1870
Fax: (440) 838-0742
Web site: www.jacobsnow.org
An E&S broker operating in OH only with limits of $10 million. Target markets are concerts, sporting events, fairs, festivals, weddings, and other social gatherings. Scottsdale, Western Heritage, Colony, and Mt. Vernon are the A rated or better carriers.
K&K Ins. Group, Inc.
1712 Magnavox Way
Fort Wayne, IN 46804
Contact: Dale Johnson, Dave Mello
Phone: (866) 554-4636
Fax: (260) 459-5967
E-mail: kk_general@kandkinsurance.comdale_johnson@kandkinsurance.comdavid_mello@kandkinsurance.com
Web site: www.kandkinsurance.com
For Canadian risks:
Phone: (800) 753-2632
Fax: (905) 602-9141
A managing general underwriter whose program is available in all states. Has in-house authority; capacity may vary by class of business. Target market is most classes of special/short-term events, including but not limited to: celebrations, conventions, meetings, promotional activities, concerts, exhibitions, festivals, fairs, tradeshows, and other one-time occasions. Other coverages offered are GL, liquor liability, vendor coverage, contingent ride liability, fireworks liability, volunteer coverage, property, business income, commercial auto, inland marine, crime, and excess liability. Carriers may vary depending on size of event/risk. All carriers are rated A or higher.
M.J. Kelly Co., Inc.
4415 E. Sunshine
Springfield, MO 65809
Contact: Lori Drake
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, FL, IA, IL, IN, KS, MO, MS, and TN with limits of $100,000 - $1 million/$2 million. Is looking to target small-town festivals, rodeos and parades. Can offer liquor liability.
McSweeny Agency (E & S)
505 High St., 2nd fl.
Burlington, NJ 08016
Contact: Richard McSweeny
Phone: (609) 387-0101
Fax: (609) 387-7171
An MGA/E&S broker that operates in NJ and PA only, with limits of $1 million (higher available). Will consider most classes. Various A rated carriers are used to place coverage.
Midwestern General Agency, Inc.
255 NW Blue Pky.
Lee's Summit, MO 64063
Contact: Joseph D. Timmons
Phone: (816) 246-1200
Fax: (816) 246-1290
Web site: www.mgakcmo.com
An MGA/E&S broker operating in IL, KS and MO with limits of $2 million/$2 million. Can offer inland marine. Scottsdale, Essex, and Nautilus are the A rated carriers.
National Hole-In-One Association
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. Can offer weather coverage. Republic Underwriters and Republic Vanguard are the A rated carriers.
NIF Group - North Island/NIF Pro
30 Park Ave.
Manhasset, NY 11030
Contact: Anthony Buonpane, Candace Murray, Dan Mogelinicki
Phone: (800) 892-8892
E-mail: marketing@nifgroup.com
Web site: www.nifgroup.com
A general agent that operates in the eastern United States with primary limits of $1 million. Can offer umbrella. All carriers are A rated.
R.V. Nuccio & Associates, Inc.
P.O. Box 307
Fawnskin, CA 92333
Phone: (800) 364-2433
E-mail: rvna@rvnuccio.com
Web site: www.rvnuccio.com
A program administrator that operates in all 50 states with limits of $500,000 - $10 million. Target market is overnight risk and camps. Can also offer wedding insurance coverage and cancellation coverage (will cover terrorist acts under their cancellation coverage). The A rated or better carriers are Firemans Fund, Gen Re, and Great American.
Robert A. Schneider Agency
5620 Smetana Dr.
Minnetonka, MN 55343
Contact: Judy Stolp, Walt Cantley
Phone: (800) 862-6038
Fax: (952) 936-0701
E-mail: rs@rasinc.com
Web site: www.rasinc.com
An MGA/E&S broker operating in IA, MN, ND, SD and WI with limits of $1 million. Target market is all types of weather, including rain and snow. AIG is the carrier.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Gail C. Pierce, Scott Sackers, Erin Marcroft
Phone: (800) 752-8402
Fax: (317) 776-6891
E-mail: gail.pierce@roushins.com scott.sackers@roushins.com erin.marcroft@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, sport event sponsors, conventions and trade shows. Can also offer liability coverage: premises/operation, products/complete operations, personal/advertising injury, fire damage, medical payments ($1 million/$2 million CGL). GL is offered up to $25 million (with excess). Scottsdale, Century, Essex, Evanston are the A rated carriers; Atlantic Casualty is rated B+.
Russell Bond & Co., Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Jeff Latke, Ext. 147; Chris Moyer, Ext. 149; Mike Kraus, Ext. 330
Phone: (800) 333-7226
Fax: (716) 856-0403
E-mail: jlatke@russellbond.com cmoyer@russellbond.com mkraus@russellbond.com
Web site: www.russellbond.com
An MGA/E&S broker operating in NY only (for this product) with limits of $2 million/$3 million (higher possible depending on the event). Target markets are social gatherings, exhibitions, dinners/dances, weddings, craft show, trade shows, festivals/fairs, reunions, hole-in-one, fishing derbies, and concerts. Can also offer GL, excess liability, liquor liability, event cancellation, and prize indemnification. All carriers are rated A or better.
SCA Promotions, Inc./SCA Insurance Specialists, Inc.
8300 Douglas Ave., Ste. 625
Dallas, TX 75225
Contact: Sheila Murphy, VP of Sales
Phone: (888) 860-3700
Fax: (214) 860-3700
E-mail: info@scapromo.com
Web site: www.scapromotions.com
An MGA that operates worldwide with limits of up to $1 billion annuity. Target markets are hole-in-one, contests for sporting events, Internet contests, over-redemption, athletic performance incentives, and gaming and media promotions. Lexington (an AIG company) and North American Specialty are the A rated or better carriers.
S.H. Smith & Co.
41 N. Main St.
West Hartford, CT 06107
Contact: Jeff Parmenter, Larry Kessler
Phone: (800) 356-0168
Fax: (860) 561-3606
E-mail: jeffp@shsmith.com
Web site: www.shsmith.com
An MGA/E&S broker that operates in all states with limits of up to $10 million. Target markets are hole-in-one, one-day events, and rain and snow insurance. Can also offer cancellation insurance. Commerce & Industry, Lloyd's, Nautilus, Northland, and Mt. Vernon are the carriers.
Southern Insurance Underwriters, Inc.
P.O. Box 105609
Atlanta, GA 30348
Contact: Charles Roberts, Barbara Commings
Phone: (800) 568-1700
Fax: (678) 498-4604
E-mail: croberts@siuins.com
An MGA/E&S broker operating in AL, FL, GA and SC with primary limits of $1 million/$2 million and excess as needed. Target market is half-court basketball. All carriers are A rated or above.
Southwest Special Risk Insurance
2800 South Hulen St., Ste. 200
Ft. Worth, TX 76109
Contact: Jill Faulder
Phone: (800) 376-0552
Fax: (817) 924-7884
E-mail: jfaulder@fdean.com
An MGA that operates in all states with limits of $1 million and up. Target markets are special events liability, amateur athletic program, celebrity protection (AD&D), sport camps, and youth sports programs. Can offer participants legal liability. American National Life, Capitol Indemnity, and Clarendon America are the A rated or better carriers.
SUREBET Prize Indemnity Corp.
P.O. Box 46548
Tampa, FL 33647
Contact: Albert Elia
Phone: (800) 658-2831
Fax: (813) 978-8967
E-mail: sales@Surebet.org
Web site: www.surebet.org
An MGA/E&S broker/agency that operates in all 50 states with limits of $1 million. Target market is prize indemnity.
Symons International Group (Florida) Inc.
2300 Glades Rd., Ste. 135E
Boca Raton, FL 33431
Contact: Barbara Berenbaum, Jane Otto
Phone: (800) 275-4348
E-mail: bberenbaum@sigfl.com jotto@sigfl.com
An MGA/E&S broker that operates in FL only with limits of $1 million/$2 million. Target markets are bazaars/craft shows, bingo, conventions, athletic events, meetings/seminars/receptions, and walkathons. Can offer liquor liability. Burlington is the A rated carrier.
Western World Insurance Co.
400 Parson's Pond Dr.
Franklin Lakes, NJ 07417
Contact: Timothy P. Hochkeppel, VP
Phone: (201) 847-8600
Fax: (201) 847-1010
Web site: www.westernworld.com
An insurer that operates in all states with limits of $1 million/$2 million. Target market is small, lighter risks. Will not write prize indemnification or weather insurance. Can also offer GL and property. Western World and Tudor are the A rated or above carriers.
Yates & Associates Insurance Services
2100 E. Fourth St., 2nd fl.
Santa Ana, CA 92705
Contact: James L. Hippard (Santa Ana), Robert J. Nestayer (Stockton)
Phone: (800) 660-1125
Fax: (800) 378-8588
Web site: www.yates-assoc.com
An MGA that operates in CA only with various limits, based on receipts. Can offer event cancellation, non-appearance, liquor liability, and rain/snow/temperature. *
