Special Section sponsored by

PROGRAM ADMINISTRATOR

National Specialty Underwriters, Inc.

Key programs administered: hospitality, healthcare, and commercial real estate

Administering a growing number of primary and umbrella programs for the hospitality industry, umbrella and excess programs for commercial real estate, and professional, general and excess liability for healthcare facilities and physicians, National Specialty Underwriters, Inc. (NSU), has enjoyed a continually expanding growth cycle over the past 14 years.

NSU is the nation’s largest program manager specializing in property & casualty insurance for the lodging industry and has successfully applied strong business principles to its rapidly growing healthcare program administration.

One of the founding members of the Target Markets Program Administrators Association (TMPAA), NSU—headquartered in Bellevue, Washington—believes that staying in constant contact and retaining a close rapport with its clients is a major reason for the company’s growth and solid industry-wide reputation. Company officials cite networking opportunities and overall professionalism within the TMPAA and its membership as major reasons for NSU’s enhanced reputation within the program business family.

“We’ve not seen industry organizations that are created better than Target Markets,” exclaims Chris Randall, NSU president and CEO. “Its working-type meetings are more constructive than the overall vacation-style meetings that some associations feature. Elizabeth Babington, NSU vice president Product Development, has worked closely with the TMPAA board for several years.”

Insuring luxury hotels was the cornerstone of NSU’s focus when the company was formed in 1995. “From zeroing in on upscale hotel organizations back then,” observes Randall, “we have enlarged our hospitality scope to include midscale and limited service hotels now. There’s a different approach, of course, at the different levels. We try to create products for each level but, as you’d imagine, some are more complex at the higher levels.

“We have considerable experience in meeting the more complex requirements of the upscale operations. We recognize that those facilities often include features such as water slides, fitness centers, sometimes other indoor and outdoor recreation areas, and kid camps/child care. There’s more activity, more things to do at these properties—more machines, more exercise equipment. The greater the chance to have more fun, the greater the chance of a liability claim. Of course if the liquor business flourishes where all this other activity takes place, P&C risks and close attention to insurance requirements are all the more challenging.”

Randall adds that many patrons of a property’s restaurants, lounges and night spots are often attracted to special events or to on-stage headliners at resort hotels. Many are not necessarily hotel guests. He also notes that many of NSU’s contracts are connected with several highly rated resorts that lie in “areas where the wind blows.” Beyond its Bellevue, Washington, headquarters National Specialty Underwriters operates offices in Georgia, Illinois, New York and in the center of a hurricane zone, Boca Raton, Florida.

“Due to the precarious nature of the current economy, we find that overall hotel revenues are down nearly 20 percent—about half of that in room occupancy, the other half in rates,” says Randall. “We recognize that every industry today watches very closely to see what’s being spent for insurance. We know that there’s the question of ‘what if we buy less.’ At NSU we generally offer higher limits against competitors while delivering very competitive pricing.”

NSU operates a specialized claims service known as Certus, a company branch that functions independently in Camarillo, California. Overall NSU has some 75 full-time employees including claims department personnel. This program administrator has lengthy relationships with several carrier partners. Tokio Marine, Travelers, and Zurich North America have been partners with NSU for many years.

Generally recognized first and foremost for its hospitality programs, which launched NSU toward its initial success, National Specialty Underwriters has become well regarded for its healthcare program business as well. While program volume remains high in hospitality, it continually builds in the healthcare area, too. “That means that NSU is creating programs that can be, and will continue to be, much more responsive for retailers,” summarizes Randall.

For more information about National Specialty Underwriters and its products and services, visit their Web site at www.nsui.com. Inquiries can also be directed to the company by calling (425) 450-1090 or through e-mail at info@nsui.com.