Specialty Lines Markets Special events, promotions, contests, prize indemnification and weather coverage By Larry G. France The world of contingency and special events has grown over the past several years. The number of available markets and new ideas about ways to utilize products in this market has grown significantly. The North American Contingency Association’s (NACA) ninth annual conference in Miami Beach this month includes panel discussions about prize indemnification and event cancellation, guest speakers, and networking opportunities. According to Todd Overton, current president of NACA and senior account manager at SCA Promotions, “NACA was first established in 1997 by a small group of professionals within the contingency insurance industry who wanted to bring together their colleagues and associates to impart knowledge, exchange ideas and share war stories. The first annual NACA conference was held in Dallas in 1998. Fewer than 40 people were in attendance. Participation grew to 65 at the second annual conference held in Toronto.” This year, NACA expected close to 150 industry professionals to attend the meeting, representing the United States, Canada and the London marketplace. Overton says that NACA’s mission is to provide “a communication and networking medium for contingency professionals to keep members informed on issues affecting our industry. The contingency industry is a specialized group that deals with insurance products that usually fall outside of the more easily recognized property, marine, casualty, and financial services departments of most companies. These products can and do have just as profound an effect on protecting a client’s balance sheet from loss as do many of the standard coverages.” See NACA’s Web site, www.nacaonline.com, for further information and a list of products and descriptions. One interesting development displays the versatility of prize indemnity, which is now also being used as a tool not only for promotion of a product or service to consumers through contests, games or other promotional giveaways, but also as a way to introduce new products or services to employees. The wide variety of companies that utilize this valuable tool covers the gamut of businesses. Duncan McCready, executive vice president of iC Group, Inc., relates several scenarios where companies used online “games” for a variety of purposes. A financial services company used a game to educate employees about a new brand identity; another financial services company used one to promote cross-selling, and a telecommunications company used a game to reward and “incentivize” dealers for achieving sales. The “branding game” used the financial services company’s Intranet site. Employees registered by entering an EIN, unique password, name and contact information. Once registered, the employee completed learning modules to receive game plays. The game had nine squares. Players who revealed the same prize in three of the squares won that prize. “More than 19% of the employees played the game, returning and playing an average of 3.5 times,” McCready says. The cross-selling game rewarded employees who sold four additional products or services at one time for a new account or added three additional products or services to existing clients with a scratch and win card. Employees also could receive a game piece for every 10 referrals per day. The employee needed to match three of nine prize symbols on the card to win. Cash prizes ranged from $1 to $1,000. The telecommunications company had an online casino-themed game. Dealers won virtual casino chips for every sale they made. Reps registered and logged in to play poker, slots, roulette or blackjack. There were instant-win prizes that changed every quarter. The best way for you to determine what could be a good promotion for your client is to sit down with the client and decide what goal the client is trying to achieve. Is it training, additional sales, or account penetration? What is the budget? The client may have considered a game with small awards that could be “self-insured,” but you could provide them with an opportunity to offer larger prizes that would create more buzz and more interest. And that’s where prize indemnification comes in. Once you have a client who is interested, you simply need to approach a market that has the expertise in game development. They do this on a daily basis and can advise what the most effective and economical vehicle would be. Don’t forget weather in planning promotional programs for clients who want to draw extra sales to their business. Any business that is sponsoring an outdoor promotion should consider weather insurance. All special events will need general liability to protect them for injuries and financial losses. What about the financial loss that rain, snow, winds and minimum and maximum temperatures can bring to an event? This is especially important for businesses that may count on certain holidays for the majority of their sales. If clients can’t get to the business because of bad weather, this can have a serious impact on total profits. Chris Ingraham, CIC, of WKF&C Agency lists some of the real-world scenarios where creative weather solutions were sought: “To cover the cost of moving an outdoor venue indoors in the event of inclement weather. “To cover revenue lost from a merchandise booth at a professional golf tournament if the tournament is rained out. “To cover an ice castle display where warm temperatures would melt the ice and make it unsafe to enter. “To cover fixed expenses and lost revenue from reduced attendance in the event that rain or other inclement weather curtails activities at historic reenactments.” Ingraham points out that it is even possible to insure certain hours of the event where the greatest financial loss would occur. She notes that “the entertainment industry is still the most frequent purchaser of weather insurance, since fair, festival and concert organizers/promoters have a limited opportunity for their events.” Each risk is underwritten individually taking into consideration the date(s) of the event, location(s) of the event(s), number of hours being insured, and limit of insurance. Another important consideration is where the rainfall, wind or temperature is measured. It will be measured at the closest national weather station or by an onsite independent weather observer. If your event is 30 miles from the closest weather station, you may consider the latter. Learn to be creative with your clients and your prize may be increased revenue and additional policyholders. Future Specialty Lines Articles will include EPLI in June, personal/commercial umbrella in July and long-haul trucking in August. The following have responded to our survey and indicated that they are a market for special events, promotions, prize indemnification or weather insurance. Note: Because this is a very specific market, most will not be a market for all coverages. You can access The Insurance Marketplace Directory at www.insurancemarketplace.com for additional information. Aberdeen Insurance Group An agency/E&S broker operating in DE, MD, NJ and PA with limits of $5 million. Target classes are holiday events, plays, concerts/shows, weddings, festivals, parades, business meetings and parties. Will not consider prize indemnification or contests. Can offer liquor liability, third-party property, event cancellation and non-owned auto. All carriers are rated A- or better. Agency Marketing Services, Inc. An E&S broker that operates in FL only with special events limits of $1 million/$2 million (minimum deductible: none; minimum premium: $500). Target markets are country clubs, private/fraternal clubs, on-premises banquet facilities, off-premises caterers (annual policy available for local church diocese, museum or catering hall, etc.); coverage available for promoters, vendors, caterers, building owners, fund-raiser beneficiaries, conventions, concerts, weddings, tournaments, festivals and parades. Will not write prize indemnification, weather coverages, carnivals, fairs with rides, firearms, or hole-in-one tournaments covering more than two days or under 150 yards. Can offer liquor liability, commercial umbrella, food product liability, personal injury, advertising, and med pay (excess available). All carriers are rated A- or better. Aggressive Insurance Brokers, Inc. An E&S broker that operates nationwide with limits tailored to various needs. Target markets include charity events, hole-in-one, basketball, baseball, football, soccer, shoot the puck, prize fish contests, special contests, concerts, fund raisers, parades, social events, fairs and festivals, haunted houses, liquor, event cancellation, indoor and outdoor skate board parks and batting cages. Injury to participants and excess medical available for most classes. Classes not written are ice hockey leagues, inflatable devices and gymnastics. Carriers are A rated. All Risk/CESI, LLC An E&S broker that operates in NY state only with limits of up to $5 million. Can offer liquor liability. USLI, Burlington, Tudor, and Nautilus are the carriers. American Wholesale Insurance Group An MGA/E&S broker that operates in all 50 states (international coverages also available) with limits of up to $20 million in-house but can obtain additional limits. Target market is special events - all contingency. Program carriers are rated A+; brokerage markets have various ratings. Aon Association Services A program administrator that operates nationwide except in Guam, Virgin Islands and Puerto Rico. Will consider all classes. Will offer event cancellation only. St. Paul Travelers (A+), and Lloyd’s (A) are the carriers. Arlington/Roe & Co., Inc. An MGA/wholesale broker that operates in IL, IN, KY, MI, OH and TN with limits of $1 million/$2 million. Target classes are hole-in-one, festivals, weddings, motorized events, concerts, and spectator liability. Can offer liquor liability. Carriers are Capitol Indemnity, Nautilus, Western World, and Northland. Bohrer, Croxdale & McAdoo, Inc. An MGA that operates in AR, IA, IL, KS, KY, MO, NE, OK and TN with limits of $1 million/$2 million/$2 million. Will not consider air shows. Can offer liquor liability and umbrella. Carriers are Capitol Indemnity, Capitol Specialty, Scottsdale, Northland, Maxum, Atlantic Casualty, and National Fire & Marine. Buckingham Badler Associates, Inc. An MGA that operates in CT, NJ, NY and PA with limits to suit the risk. Can offer liability and property. The carrier is rated A+. Burns & Wilcox Ltd. An MGA/E&S broker that operates in all states with limits of $1 million/$1 million (higher limits available upon request). Target classes are beer gardens/beer tents, car shows, concerts/musicals, conventions/trade, performances/shows/exhibits, festivals, fund raisers, parties, parades, sporting events, picnics, motor vehicle events (not racing), and weddings/wedding receptions. Will not write auto racing events, rock concerts, and air shows. Can offer host and commercial liquor liability, volunteers/temporary workers, food/beverage product liability, medical payments, and damage to rented premises. USLI, USF, and Lloyd’s are the carriers. Continental Bloodstock Agency, Ltd. An agency that operates in all states with limits that vary by program. Will consider all classes. Can offer GL and property. Gemini is the A rated carrier. Corporate Advisors Inc. A wholesale/retail broker that operates in all states with various limits. Will consider all classes. Various carriers are used to place coverage. Creative Underwriters Corp. An MGA that operates in IL and IN only with limits of $1 million. Will consider most special events. Can offer excess limits. Scottsdale (A+), Western Heritage (A+), Penn America (A-), and Nautilus (A) are the carriers. Entertainment Brokers International A managing agent that operates in all states with limits of $1 million/$1 million. Target classes are special events, amateur/professional athletes, and fairs/festivals. Will not write prize indemnification. Can offer GL, auto, property, inland marine, workers comp, and contingency. The carrier is rated A-. Evolution Insurance Brokers (EIB International) An E&S broker that operates in all states with all limits available. All classes are considered. Can offer monoline liquor, assault and battery, and after 3:00 a.m. closings. Prime Insurance Syndicate is a B rated carrier. Excel Insurance Service, Inc. An MGA/E&S broker that operates in NJ and PA with limits of $3 million. Scottsdale is the A+ rated carrier. Francis L. Dean & Assoc., Inc. An MGU that operates in all states with special events limits of $1 million/$2 million plus $2 million excess. Target class is small to medium-sized premiums. Will not write hard rock, rap/hip hop, or motor sports. Various A rated carriers are used to place coverage. Gary Markel Surplus Lines Brokerage, Inc. An MGA/E&S broker that operates in FL only with primary GL limits of $1 million/$2 million; umbrella of $10 million; $100,000 prize indemnification. Will consider all types of events. Can offer liquor liability ($1 million limit). Essex and Colony are the A rated carriers. Gateway Underwriters Agency An MGA (agency appointment required) that operates in IA, IL, KS, MO and NE with limits of $5 million depending on company and event. Target classes are fairs, conventions, rodeos, mud bogs, amateur sporting events, dances, home shows, haunted houses, hayrides, pony rides, tractor pulls, vendors, demolition derbies and hole-in-one. Will not write contact sports; rock, rap, heavy metal, alternative concerts; airplane rides, air shows, balloon rides; raves; or auto/boat races. Can offer liquor liability for special events. USLI/Mt. Vernon (A++), Western World (A+), and Nautilus (A) are the carriers. Grand Prize Promotions An MGA/agency that operates in all states with limits of up to $1 million. Target classes are prize indemnity, weather and event cancellation. Carriers are Lloyd’s, Republic Underwriters (A) and Republic Vanguard (A). H.R. Keller & Co., Inc. An E&S broker/wholesaler that operates in NY state only with limits of $1 million/$2 million. Target classes are auto shows, trade shows, sporting events (will consider most classes). Will not write tractor pulls, racing of any kind, or rap/heavy metal concerts. Various carriers are used to place coverage. Harry W. Gorst An MGA/E&S broker operating in CA only with GL limits of up to $10 million. Target classes are arts & craft shows, Christmas tree and pumpkin patch lots, exhibitions, fairs, festivals, weddings, auctions, indoor auto/boat shows, meetings, Renaissance fairs, seminars, dances, tournaments (ex participants), and theatrical and stage performances. Will not write weather coverage, air shows, sky diving, boat races, bungee jumping, protest rallies, war games or wrestling matches. Can offer liquor liability. Scottsdale (A+), Colony (A), and Western Heritage (A+) are the carriers. Hole In One International/Odds On Promotions A risk purchasing group that operates in all states with limits of $1 million. Target classes are hole-in-one and all other prize indemnifica-tion. Insurance Corp. of Hannover is the A rated carrier. iC Group, Inc. A Lloyd’s of London coverholder with worldwide binding authority. Limits are $1.675 million (USD) for contingency coverage and $5 million (USD) for non-appearance/event cancellation. Target markets are contingency and non-appearance and event cancellation. Lloyd’s is the carrier. Insurance Center Special Risks Ltd. An MGA that operates in CT, MA, NH, NY, RI and VT with liability limits of $1 million/$2 million. Target class is hole-in-one. Will not write rock/rap concerts, haunted houses, hayrides/carriage rides, or moonwalks/bounce houses. Essex and Fireman’s Fund are the A rated carriers. Insurance Innovators, Inc. An MGA/E&S broker that operates in CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI and VT with primary and excess limits available. Target classes are fund raisers, picnics, amateur sporting events, concerts, lectures, trade shows, auctions, reunions, festivals, hole-in-one, social gatherings and weddings/receptions. Can offer GL and liquor liability. Various A+ rated carriers are used to place coverage. J.P. Everhart & Company, Inc. An MGA/agency that operates in all states with limits of up to $1 million. Can offer weather insurance. Lloyd’s, Republic Underwriters (A), and Republic Vanguard (A) are the carriers. Leisure/Sports Specialists, LLC A general agency that operates in all states with limits of $6 million. Target market is large special events with participant liability or spectator liability exposures. Will not write all coverage for promotions, contests, or prize indemnification. Offers GL and excess liability only. Century Surety is the A- rated carrier. M.J. Hall & Company, Inc. An MGA/E&S broker that operates in AK, AZ, CA and NV with liability limits of $5 million or more; prize indemnity of up to $50,000 or more. Target classes are social events, art shows, contests, craft shows, seminars, and car shows. Will not write auto races. Can offer prize indemnity and liquor liability. All carriers are A rated. McLeckie Insurance Group An MGA/E&S broker (Lloyd’s coverholder) that operates in all states with limits as required. Various admitted and nonadmitted carriers are used to place coverage. Metcom Excess An E&S broker that operates in NJ, NY and PA with limits of $1 million. Target classes are social gatherings, weddings, auctions and tournaments. Will not write motorized racing events, bingo, boat shows (no water exposure), boxing events, concerts, light rock, conventions, and trade shows. Can offer liquor liability. Colony, Century, Burlington, Wilshire, and Western Heritage are the carriers. Midlands Management Corp. An MGA that operates in AR, CO, KS and OK with limits of $1 million/$1 million. Target classes are auto, boat, trade, consumer, craft shows; banquets, birthdays, reunions, weddings, dances; award meetings, graduations, lectures; auctions, bazaars, bingo, concerts, religious events, scouts; Easter egg hunts, Christmas tree lots, recurring events on an annual policy; and body-building contests. Will not write auto drag racing, boat drag racing, or gun hunts. Lloyd’s is the carrier. National Hole-In-One Association An MGA/agency that operates in all states with limits of up to $1 million. Can offer weather. Republic Underwriters and Republic Vanguard are the A rated carriers. National Insurance Professionals Corp. A/D/O Risk Placement Services A program administrator that operates in all states except AL, LA, MS, and WV. (IA, IL and OR are prohibited for liquor liability only.) Limits are available up to $1 million. Target markets are conventions/trade shows, wedding parties/social events, festivals, sporting events/tournaments, events with up to 5,000 attendees (GL) or 5,000 consumers (liquor). Will not write events that feature fireworks or firearms, on-water events such as boating or fishing, overnight camping, mechanical rides, events with more than 5,000 attendees daily. Can offer GL and/or commercial liquor liability coverage for events with up to 5,000 attendees per day. USLI is the A++ rated carrier. NIF Group, Inc./NIF Pro An MGA that operates on an admitted basis in all states and on a nonadmitted basis in the eastern United States, with limits of $1 million. Target class is special events. Will not write hole-in-one or prize indemnifica-tion. Can offer liquor liability, GL and package. All carriers are A rated. Petersen International Underwriters An MGU that operates nationwide with limits that depend on the market. Will consider all classes. Can offer event cancellation and/or non-appearance coverage. Lloyd’s is the A rated carrier. Prime Insurance Syndicate Inc./I.E.B.S. An insurer (Prime) and MGA (I.E.B.S.) that operates in all states with all limits available. Will consider all classes. Can offer monoline liquor coverage, assault and battery, and (in the hospitality industry) after 3:00 a.m. closings. Prime is a B rated carrier. Roush Insurance Services, Inc. An MGA that operates in IL, IN and OH only with customary limits of $50,000 (higher limits available). Can offer premises/operation, products/completed operations, personal advertising injury, fire damage, medical payments ($1 million/$2 million CGL and GL, up to $25 million with excess). Scottsdale (A+), Century (A), Essex (A), Evanston (A) and Atlantic Casualty (A) are the carriers. Russell Bond & Co., Inc. An MGA/E&S wholesaler that operates in CT, MA, NJ, NY, PA and VT with limits that start at $100,000. Target classes are social gatherings, exhibitions, dinners/dances, weddings, craft shows, trade shows, festivals/fairs, reunions, fishing, derbies, concerts, and firework shows. Can offer GL, excess liability, liquor liability, event cancellation, prize indemnification and weather insurance. All carriers are rated A- or better. SCA Insurance Specialists, Inc. An MGA that operates worldwide with limits of up to $1 billion annuity. Target markets are promotions, contests and games worldwide, including but not limited to hole-in-one contests, consumer product promotions, performance bonuses, sports contests, Internet programs, traffic builders and over-redemption coverage for coupons and rebates. Products are for agencies, brands retailers, sponsors, sporting teams, media outlets and more. Can offer surety, printer’s E&O, and in FL and NY games of chance bonds. North American Specialty is the A+ rated carrier. S.H. Smith & Co. An E&S broker that operates in all states with limits of $1 million. Target classes are weddings, birthdays and trade shows. Can offer GL. All carriers are A- rated or better. S.I.U., LLC An MGA/E&S broker operating in CA only with GL limits of $2 million/$2 million, property of $500,000 and inland marine of $100,000. Target classes are plays, reunions, marathons, sidewalk sales, soap box derbies, instructional classes, mud rallies, parades, picnics, rodeos, shows, arts & crafts, auctions, parties, circuses, Easter egg hunts, gatherings, exhibitions, fairs, festivals, tournaments (fishing, golf, etc.) and street dances. Will not consider political rallies, air shows, ballooning, sky diving, war games, cattle drives, mechanical rides, dunk tanks, trampolines, inflatables, water slides/rides, rap/rock concerts, auto/go-kart/motorcycle racing or school parties. Carriers are rated A- or better. Southwest Special Risk Insurance An agency that operates in AR, AZ, FL, KS, LA, NM and TX with various limits. Target class is sports. Can offer accident and participant legal liability. All carriers are A rated. SUREBET Prize Indemnity A program administrator that operates in all 50 states plus Canada and Puerto Rico with limits of $1 million. Will not consider touring pros. Can offer hole-in-one and prize indemnity. Indian Harbor is the A+ rated carrier. Surplus Insurance Brokers Agency, Inc. An MGA operating in IL and IN only with limits of $1 million (umbrella up to $10 million). Target classes are hole-in-one, festivals, art fairs, wedding receptions. Will not consider airplane shows, hot air balloon rides or carnival rides. Can offer athletic participant coverage. Capitol Indemnity (A+), Scottsdale (A+), and Northfield (A) are the carriers. Symons International Group (Florida) Inc. An MGA/E&S broker operating in FL only with limits of $1 million/$2 million. Target classes are conventions, concerts, exhibitions, craft fairs, social gatherings and meetings. Will not write rock concerts or motorized events. Can offer liquor. Burlington is the A- rated carrier. TSI Sports, Inc. A purchasing group that operates nationwide with limits of $2 million. St. Paul Travelers is the A+ rated carrier. W.A. Schickedanz Agency, Inc. An MGA/E&S broker that operates in IL and MO only with limits of $1 million/$2 million. Target classes are weddings, concerts, fund raisers and sporting events. Will not consider air shows or heavy metal concerts. Can offer special event liquor. Northfield (A), Maxum (A-), Colony (A), Essex (A), Burlington (A-), and Lloyd’s (A) are the carriers. W.H. Greene & Associates An MGA/E&S broker that operates in NY state only with limits of $1 million/$2 million plus excess. Target classes are athletic events, concerts, shows/exhibitions, fairs/carnivals, social gatherings, races, plays, parades, seasonal events, hole-in-one, basketball/hockey shoots, bowling tournaments (perfect 300 games), tagged fish contests/fishing derbies, football throws/field goal attempts, baseball throws, tournaments/competitions, and fireworks displays. Can offer some athletic events eligible for athletic participants coverage and sports leagues/camps. All carriers are A rated or better. Western Maritime Insurance Services An MGA/E&S broker that operates in 11 Western states with limits of $5 million. Target classes are boat shows and specialty marine events. Will not consider non-marine. Can offer works comp. New Hampshire, Chubb Custom, and Gemini/Berkley Group are the carriers. Western World Insurance Co. An insurer that operates in all states with GL limits of $1 million/$2 million. Target market is smaller, lighter risks. Will not consider prize indemnification. Can offer GL, property, floaters. Western World is rated A+ as is Tudor. WKF&C Agency, Inc. A program manager that operates in all states with limits of up to $10 million. Targets all events, indoor and outdoor; for example, corporate functions, concerts, educational seminars, comedy shows, sporting events, golf, hole-in-one, putting contests, basketball shots, and prize indemnification/promotions. Can offer non-appearance and weather insurance for special events/promotions. All admitted and nonadmitted carriers are A rated or better. Yates & Associates Insurance Services, Inc. An MGA that operates in CA only with various limits. Will consider all classes. Can offer liquor liability. All admitted and nonadmitted carriers are A rated. * |
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