Hurricane Spin-down
Nuts & Bolts: ACE USA introduced hurricane spin-down insurance that can be used by the chemical process industry to help reduce the financial costs of closing down plant operations in response to the threat of a
hurricane. This new insurance policy—part of the StormTracker suite of weather insurance products—is reportedly unlike traditional property policies and will respond even if the plant does not suffer property damage as a result of the hurricane. The Hurricane Spin-down policy will pay a pre-determined value to cover the lost income and extra expenses incurred during the period of spinning down and spinning up plant operations. Coverage will be triggered if the probability of a hurricane impacting the covered location reaches an agreed-upon critical threshold based on the plant's hurricane response protocols. This policy is available for coastal areas in the United States and the Caribbean. The coverage period can extend from a few days to the entire hurricane season. The hurricane spin-down insurance product will be marketed through both retail and wholesale insurance brokers.
Dollars: Minimum premium of $10,000; deductibles are deductibles "in-kind", e.g. insurance for major (categories 3, 4 and 5) hurricanes only. Coverages for categories 1 and 2 are available, but due to their frequency, are more expensive. Typical policy limits are expected to be between $1 million and $5 million, although higher limits are available upon request, and subject to underwriter
discretion.
Carrier: Illinois Union Insurance Company, non-admitted. Illinois Union is a wholly owned subsidiary of ACE USA, and is rated "A" by AM Best, "A+" by S&P and Fitch, and "A2" by Moody's.
States Available: U.S. coastal states from Maine to Texas and the Caribbean Islands.
Contact: Michael Luck, (215) 640-5341 or michael.luck@ace-ina.com
Contractors Program
Nuts & Bolts: Victor O. Schinnerer & Company's contractors program recently released new 2004 editions of its three policy forms: a stand-alone professional liability policy, a stand-alone pollution incident policy, and a combined professional and pollution liability form. The changes allow for greater coverage consistency within Schinnerer's program. They also allow the contractors coverage to better complement CGL coverage written on the ISO form. Schinnerer has clarified policy language, in response to feedback from Schinnerer's brokers. Some of the revisions resulted in broader coverage in certain areas. For example, the Combined Form now offers protection for a pollution incident resulting from the loading or unloading of an owned auto. The Combined Policy also covers asbestos abatement claims made after January 1990.
Dollars: Professional liability limits for general contractors range from $1 million to $25 million. Minimum SIR is $10,000. And the minimum premium is $7,500. Professional liability limits for specialty contractors (mechanical, electrical, etc) range from $1 million to $25 million. Minimum SIR is $5,000. Minimum premium is $4,000. Combined Professional and Pollution Incident Liability limits for general contractors range from $1 million to $25 million. Minimum SIR is $10,000. Minimum premium is $10,000. Combined professional and pollution incident liability limits for specialty contractors range from $1 million to $25 million. Minimum SIR is $5,000. Minimum premium is $6,000.
Carrier: Columbia Casualty Company in all states except for Illinois (in Illinois, CNA Casualty of California). Both are CNA companies and are non-admitted.
States Available: All states, the District of Columbia and U.S. territories, except for Puerto Rico.
Contact: Mary Jefferson, (301) 951-9798 or mary.l.Jefferson@schinnerer.com.
Long Term Care, Assisted Living Facilities
Nuts & Bolts: Lionheart Insurance is offering several new markets for various adult-care facilities.
Dollars: Property limit to $5 million (can include flood and earthquake). Liability limit to $5 million combined GL/PL.
Carrier: Lloyds of London rated "A," non-admitted.
States Available: All.
Contact: Joe Weckerle, (818) 591-3010 ext.105
Professional Liability
Nuts & Bolts: Target Insurance Services now offers professional liability coverage. Target also offers stand-alone package coverage and first or third party crime, for staffing and recruitment firms.
Dollars: Separate E&O and EPLI policy limits up to $5 million, deductibles vary by firm size and the minimum premium for a $1 million limit is $1,500.
Carrier: National Casualty, rated "A+" by A.M. Best, is an admitted affiliate of Scottsdale Insurance and is owned by Nationwide Insurance. All three companies are rated "A+" by Best.
States Available: All, except Alabama, Hawaii, Louisiana, Mississippi, West Virginia and Wyoming.
Contact: Valerie McDonald, (888) 888-1613, ext. 244 or www.target-capital.com
WorldRisk TravelPak
Nuts & Bolts: AIG Small Business, a unit of the property and casualty insurance subsidiaries of American International Group Inc. (AIG), introduced WorldRisk TravelPak, a comprehensive package of international coverages designed for U.S.-based commercial enterprises with employees traveling on business abroad. This package provides a range of coverages for overseas travel hazards, including commercial general liability; non-owned and hired auto liability; employers' responsibility; excess repatriation expenses; travel accident and sickness; foreign business travel property; and kidnap, ransom and extortion. Geared towards manufacturing concerns, financial institutions, retailers/wholesalers and professional services companies, the package covers ten or less short-term overseas trips per year and up to ten employees per trip.
Dollars: Venue Liability Protector offers general casualty limits of liability up to $1 million in primary coverage and excess limits up to $25 million. Up to $10 million in aggregate AD&D insurance is also provided.
Carrier: Lexington Insurance Co. rated "AAA" by S&P, non-admitted.
States Available: All
Contact: Deborah Coleman, (214) 932-2163 or venueliability@aig.com
