Aon Corp. and State Farm Mutual Automobile Insurance Company have signed an agreement in which State Farm will market commercial insurance specialty products developed and serviced by AON. The products, which will be sold by State Farm’s network of 16,000 agents, will expand State Farm’s commercial insurance offerings, which now include more than one million commercial policies.
Those offered initially will include coverage of professional liability; employment practices liability; directors and officers liability for small businesses and not-for-profit organizations; and errors and omissions liability for service providers–including technology service businesses such as Web developers and information technology consultants. Additional products will be offered later.
As part of the agreement, Aon has formed Prairie State Administrative Services, Inc., which will function as the administrative services provider on behalf of State Farm. Prairie State will operate under the license designation, “State Farm Specialty Products,” which will design and administer the products. State Farm will underwrite the policies.
Was this article valuable?
Here are more articles you may enjoy.