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Interesting... can you give us an example of a "company type" that would " illustrate" a high risk that would need ES?
Where the "Real Mon$y" Is....
- Thread starter Davis B
- Start date
DivineFoodie
Expert
Crane Insurance Policies; Large Commercial Contracting Policies with multiple subs (typically large building projects like shopping malls, etc). Large taverns and bars with dance floors, etc. Most (typical) insurance carriers do NOT like the large tavern & bar risk, as more than 50% of sales come from the sell of liquor, so, there are additional risks associated with them, but in turn, typically larger premiums too.
Mind you, if a company only wanted to insure one, small crane, they probably wouldn't be considered a high risk, but if it's multiple cranes and LARGE industrial cranes (like they use for building in say, New York) a lot of those policies are written in the E&S market.
Mind you, if a company only wanted to insure one, small crane, they probably wouldn't be considered a high risk, but if it's multiple cranes and LARGE industrial cranes (like they use for building in say, New York) a lot of those policies are written in the E&S market.
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- Thread starter
- #13
Thanks Divine for your input!
1. Don't large restaurants-bars-discos "self insure?" The premiums must be enormous for this type of insurance.
2. I take it you are in a large city where large building projects are going up. Must be difficult to land that type of business...no?
1. Don't large restaurants-bars-discos "self insure?" The premiums must be enormous for this type of insurance.
2. I take it you are in a large city where large building projects are going up. Must be difficult to land that type of business...no?
DivineFoodie
Expert
Absoutely! Some businesses do self insure. No, it's probably not easy to land these type of policies. I'd imagine it's definitely about who you know and just networking your butt off, so that if an opportunity comes to land a big policy, then you are ready to step in and quote that risk.
Yes, where I live now, and where I lived before (AZ), there was ALWAYS a lot of building going on - strip malls, restaurants, condos, apartment buildings, new home builds, even airports!
Yes, where I live now, and where I lived before (AZ), there was ALWAYS a lot of building going on - strip malls, restaurants, condos, apartment buildings, new home builds, even airports!
DivineFoodie
Expert
Being self- insured (SIR) in and of itself does not necessarily mean the insured will have a large policy premium. Self-insured policies can and are written on small risks too, because this premise was made in order to lower the amount the insured would have to pay for premiums, so in essence, they are taking on some of that risks themselves; versus paying for it within their policy.
I adjusted a lot of claims where the insured's had SIR, and I would look at the claim loss information, and if it looked like a loss that would be settled within their SIR, then I wouldn't really have to work the claim. It would (typically) be SIR's for around 25-50k, so any losses that were made that were (potentially) below that threshold, the businesses would pay those losses themselves. Now, if there was a larger claim with: multiple claimants, and/or severe injuries, I would have to work with their in-house (or hired) SIR person so that once their payments had been exhausted, I could step in and continue working on the claim.
That was a long way of saying that an SIR is similar to a deductible, in that sometimes it can lower the premium amount too. Most of mine were big, but I did see some smaller businesses with SIR's, and their policy premiums weren't that high.
Essentially, the more risk exposure there is, the higher the likelihood of having various supplemental endorsement coverages on a policy; thus, increasing the premiums. Obviously, a 12 unit apartment complex policy premium is going to be far less than a 400 unit apartment complex policy premium. The State Farm's and such just like "vanilla" risk. They don't want to take on too much risk; hence the reason the E&S/Surplus market was born, to take on that risk, and trust me, they charge accordingly.
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@DavisB, the company I worked for insured this bar (located in Florida): Spinnaker - Spinnaker Beach Club
I adjusted MANY claims for this business...and while I can't recall what their policy premiums were, I can assure you, they were significant, as I settled some 6-figure claims for them.
I adjusted a lot of claims where the insured's had SIR, and I would look at the claim loss information, and if it looked like a loss that would be settled within their SIR, then I wouldn't really have to work the claim. It would (typically) be SIR's for around 25-50k, so any losses that were made that were (potentially) below that threshold, the businesses would pay those losses themselves. Now, if there was a larger claim with: multiple claimants, and/or severe injuries, I would have to work with their in-house (or hired) SIR person so that once their payments had been exhausted, I could step in and continue working on the claim.
That was a long way of saying that an SIR is similar to a deductible, in that sometimes it can lower the premium amount too. Most of mine were big, but I did see some smaller businesses with SIR's, and their policy premiums weren't that high.
Essentially, the more risk exposure there is, the higher the likelihood of having various supplemental endorsement coverages on a policy; thus, increasing the premiums. Obviously, a 12 unit apartment complex policy premium is going to be far less than a 400 unit apartment complex policy premium. The State Farm's and such just like "vanilla" risk. They don't want to take on too much risk; hence the reason the E&S/Surplus market was born, to take on that risk, and trust me, they charge accordingly.
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@DavisB, the company I worked for insured this bar (located in Florida): Spinnaker - Spinnaker Beach Club
I adjusted MANY claims for this business...and while I can't recall what their policy premiums were, I can assure you, they were significant, as I settled some 6-figure claims for them.
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- 446
So you are an adjuster....i thought good money was made in the adjustment field?
DivineFoodie
Expert
@TonyC, there can be a lot of $ in adjusting. I was in it for awhile and got burnt out. Not so much from my actual job (which, oddly enough once you get the bigger claims/specialty accounts, it's actual interesting work); insurance, like any other industry is very bureaucratic.
I work hard, and was good at what I did, but there was always too much bureaucracy going on. People stepping on others to get a paltry raise, etc. I could go on, but suffice to say, the part of my job I enjoyed was my interaction with the insured's and attending mediations/settlement conferences, and representing their best interest; hence the reason I (hope) think that I should likely be a good fit as a broker. But, only time will tell. Regardless, I'll try my best and work like a dog.
I work hard, and was good at what I did, but there was always too much bureaucracy going on. People stepping on others to get a paltry raise, etc. I could go on, but suffice to say, the part of my job I enjoyed was my interaction with the insured's and attending mediations/settlement conferences, and representing their best interest; hence the reason I (hope) think that I should likely be a good fit as a broker. But, only time will tell. Regardless, I'll try my best and work like a dog.
- 446
Divine,
Thanks for sharing....
Sorry to hear about the politics of biz. Jesus...you can't just do your job anymore...you have to walk on water.
You sound like a good man and a hard worker. Very Detailed.
I'm Certain you will do well in PC Sales.
~T
Thanks for sharing....
Sorry to hear about the politics of biz. Jesus...you can't just do your job anymore...you have to walk on water.
You sound like a good man and a hard worker. Very Detailed.
I'm Certain you will do well in PC Sales.
~T
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