CoverX produces business on behalf of First Mercury Insurance Company, both of which are wholly owned subsidiaries of First Mercury Financial Corporation. First Mercury Insurance Company is rated “A-” (IX) by A.M. Best Company. Formed over 35 years ago, CoverX remains committed to its core franchise—placing general liability insurance for the security industry, which includes not only security guards and detectives, but alarm and safety equipment installation and service businesses as well—but has also looked beyond that narrow market segment into a number of other disciplines. The evolution will continue with the planned acquisition of Valiant Insurance Company, an admitted carrier with licenses in 47 states and an appetite for the specialty classes that have made CoverX/First Mercury an important player in the space.

“Our company continues to grow and add new capabilities,” says Tom Greene, CoverX senior vice president. “We continue to demonstrate a keen eye for adding new products and programs, and underwriting talent and platforms of the highest quality and reputation. The Valiant acquisition will substantially increase our visibility within the professional liability marketplace, give us a new presence in the marine market, and complement our existing capability in specialty casualty lines. We couldn’t be more excited about the new opportunities that will come with this acquisition.”

CoverX remains at its core an underwriting company. “Our  managers are all very experienced and have the autonomy they need to be creative and responsive, which lets us help our brokers meet their clients’ needs,” Greene says. “Through our nationwide network of branch offices we have local geographic presence with our extremely experienced team. Plus, we have some of the most comprehensive forms out there. We’ll entertain risks at no minimum premiums and no minimum attachments. At the same time, we’re experienced enough to handle the mega-risks. Add to that our first class service and you will understand why brokers love doing business with CoverX.”

CoverX continues its tight underwriting discipline and focus on profitable business. The company maintains offices in Southfield, Michigan, Boston, New York, Chicago, Atlanta, Dallas, Los Angeles and Seattle in order to stay close to its producers. CoverX provides access to markets for all types of E&S casualty and property business, umbrella accounts, professional liability, medical malpractice and allied health care risks, and of course, its longest standing business, security. Other business includes transportation on an excess basis, and CoverX Programs.

CoverX also supports a number of MGU-based programs. “We have been involved with these third-party underwritten accounts since 2004 and have a tremendous amount of respect for the abilities and expertise of our program manager partners in this area,” Greene says. “There are many well qualified MGUs with unique books of business differentiated by product line or distribution, and we are interested in partnering with those firms. We are looking for proven operations that realize that the bottom line is the key to long-term success in this business.”

Altogether, opportunities and challenges abound at CoverX. “The market rewards hard work and discipline over the long term,” Greene says. “We feel our underwriting culture and entrepreneurial spirit will help us continue to develop First Mercury into one of the great companies in our business. We appreciate the support of our brokers and clients and look forward to expanding our presence with all our business partners in the months and years ahead.”