Roofing Company GL. Admitted vs. excess/surplus lines

[tylerb37]

Hello everyone, I appreciate any insight that you could offer. I am an independent agent in NJ and really just started to expand from doing only WC on the commercial side. One of my roofing WC clients asked me to shop out their GL because they felt like they were paying way too much.

Current carrier is CNA, premium is $49,000. Only one claim since 2010, which was in 2013 for $58,000. I quoted it out and well in NJ does not seem to be a ton of options for roofers to begin with. Got a quote back from Kinsale Insurance Company » Construction

Quote came back at $31,000 all in. Huge savings obviously, even has a lower deductible. All coverage's listed are apples to apples.

Is CNA's premium just much higher because it had a claim with the insured that was significant?

Would love any insight that can be provided, much appreciated ahead of time. Thank you

 

[AZDave]

Were you able to get a copy of his full renewal? Is your quote matching the expiring exposures? Does your quote include matching AI endorsements? Does the expiring have any scheduled AI's? Is their any completed operations the insured is still contractually obligated too? What type of prior work exclusion is included in your Kinslale policy? Does Kinsale use true ISO GL Policy and forms? How about Kinsale's audit procedure - is it one way? Just a couple of questions I would ask. Your broker should be able to provide you a full specimen policy.

Does CNA have the underlying Commercial Auto? Always best to have both lines with same carrier.

Insured must be made fully aware of the policy differences, not just the price difference. Insured also needs to understand the non admitted vs. admitted differences. If, at the end of these discussions the insured wishes to proceed with the change, I would have him sign an acknowledgment that he is aware that he is changing to a non admitted carrier.

I have yet to meet a roofer that declares full payroll's. Gotta love that Work Comp rate - it's around $20 here in AZ.

Good Luck and welcome to the Forum!

Dave

 

[tylerb37]

Dave thank you for those questions to ask. Roofing in NJ the WC rating is 35.71, this company been in business a long time seems to go about it the right way their highest payroll is roofing, do have some sheet metal guys which is a 9.78, and carpentry 19.35.

CNA does not control the auto. NJ does make insured's sign the acknowledgement form.