The Hartford Financial Services Group Inc. announced that its First State Management Group has formed a strategic relationship with certain members of the Berkshire Hathaway group of insurance companies to offer expanded levels of surplus lines commercial property insurance.
Under the agreement, First State, an underwriting manager for The Hartford, will leverage the capacity of The Hartford’s subsidiary surplus lines insurance companies with capacity from the Berkshire Hathaway Group’s National Fire & Marine Insurance Company, National Indemnity Company and National Indemnity Company of the South.
Policies under this arrangement will be offered on a quota share subscription, or “combination” basis, meaning that each company is responsible for a certain portion of the risk. In most cases, that risk will be shared equally. Each company will be severally, but not jointly, liable for its own respective participation.
Coverage limits, on average, are expected to be twice as high as those previously made available by First State. Depending on the risk, limits could reach $25 million.
First State will manage all underwriting, distribution and claims aspects of this business for both the Berkshire Hathaway Group and The Hartford insurers. First State will also be the contact for all correspondence, questions, and claims reporting.
Source: The Hartford, www.thehartford.com
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