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Specialty Lines Markets The social services market Broad-based market includes counseling, social workers, welfare workers E&O, halfway houses and rehab centers By Larry G. France Breaking news: The market is soft. Social services business is no exception. The good news is that a leveling in the market is on the horizon. The number of accounts that fall into this class is growing, and the competition for that business is just as strong as it is for existing business. “The recent soft market conditions prevalent in most commercial classes also affected the social services agency marketplace although the softening appears to have leveled off and some stability has returned in the past year,” according to Emma VanAcker, underwriter at National Insurance Professionals in the Social Services Division. “We are able to maintain renewal premiums with decreases seen on the most deserving accounts.” Classes written by National Insurance Professionals include adoption and foster care placement, drug and alcohol treatment, mental heath counseling, and residential care facilities, as well as many miscellan-eous case management agencies. VanAcker adds: “Increased capacity is also available in the marketplace. Limits are available at a higher level than they have been for many years. We are also able to look at accounts that may have been difficult to write in the past; the marketplace is definitely showing more flexibility than in previous years. A prime example is that occurrence forms are now available as an option on most accounts for professional liability and on all accounts for general liability.” “This sector remains robust,” according to John W. Sullivan, division president at Great American Specialty Human Services (SHS). “Recent statistics point to a number of new human and social service organizations. Existing human services associations (HSAs) seem, in general, to be on solid financial footing. There is evidence that existing social services associations are growing via expanded client services, geographically and/or offering services to new clientele.” Sullivan says that the typical human and social service organization is multifaceted, requiring a variety of unique coverages including professional, abuse and molestation, special events, non-auto, coverage for client transportation to include 15-passenger vans, and various forms of property protection including functional replacement cost, time element, etc. “Due to their unique and diverse nature, agents and insurers face a challenging resource commitment in the areas of underwriting, information gathering, client education, and claims adjustment. High achieving agents and insurers recognize this challenge and have perfected procedures and products as well as solutions to perform in an efficient and effective manner,” says Sullivan. “Claims handling is vital to our leadership in the space-tempo, litigation, policy construction, building valuation, mediation, BI damage assessment, selection of defense counsel, understanding the vernacular and organization structure of the typical HSA,” according to Sullivan. Great American employs 30 loss prevention consultants (PEs—professional engineers—and CSPs—certified safety professionals) who provide one-on-one on-site loss prevention services (not risk inspections) to more than 1,300 SHS policyholders. How will the softening market affect the social services insurance market? Ask Mike Mullens, London American risk specialist in Dallas, Texas. “Look for several things to happen,” Mullens answers. “Expect to see buyers anticipate a rate reduction, thereby lowering their insurance costs. Delays and cutbacks in funding provided by private sources and/or local, state, and federal governments will cause social services to look for reductions in premium. Their board members, insurance agents, and other social service agencies will encourage them to shop their business to take advantage of the ‘good deals.’ You will see new markets enter the business as well as an increase in consolidations and mergers in existing markets. A recent example is the merger of the social service book of Black/White & Associates with Markel Insurance Group. The competition for social services business will most likely intensify.” Mullens offers some ideas to help agents stay on top of this process: “Find a segment of the market that offers you the greatest opportunity and focus on that area. “Call underwriters that specialize in social services and ask what they do best. Don’t just send a submission out into the market. “Provide complete and accurate submissions, including loss details, narratives on the agency’s operations, management experience, and internal controls. “While it is tempting to just sell price in a soft market, offer limits options, improve coverage and lower deductibles. Educate your clients on the values these enhancements afford. “Provide timely solutions when coverage and price options are available from the marketplace. This may be important to your success because many social services agencies need approval from their boards of directors before they can make a final decision. “Be knowledgeable about how the insurance company handles claims such as sexual abuse or negligent care by requiring them to communicate with you before the sale is closed so that you can pass on this information to your customer. “The end result should be you are in control of the process, not controlled by it,” Mullens maintains. Another change in markets announced recently is that Safeco’s insurance product line for nonprofit social services agencies will now be available to all independent agents through one national source, NIF Group, Inc. This includes coverage for drug and alcohol treatment centers, mental health facilities, homeless family shelters, child/family services and community services agencies. More information on social services agencies is available at no charge at www.insurancemarketplace.com. Another source of information is The Insurance Marketplace’s Specialty Lines Bulletin Board on www.roughnotes.com. Specialty articles in the upcoming issues include Leisure/Travel Hospitality Industry in June, EPLI in July, and the Security Industry in August. The following have responded to our survey and indicated that they are a market for Social Service risks: AFC Insurance An MGA that operates in most states with limits that vary by program, carrier and line of coverage. Target classes are health/human services, home health care and children’s day care. Can offer GL, professional liability, umbrella, property, auto, D&O and A&H. The A rated or better carriers are AIG, Lexington, QBE, and Travelers. All Risks, Ltd. and All Risks of CA Insurance Services, LLC An MGA/E&S broker operating in AZ, CA, DC, DE, FL, GA, MD, NC, PA, SC and VA. Target classes are social services, halfway houses, homeless shelters and counseling agencies. Can offer GL, property, workers comp, excess liability, umbrella, E&O, DIC, D&O, and professional liability. All carriers are rated A- or better. American Healthcare Indemnity, a member of The SCPIE Companies An insurer that operates in CA and specializes in health care liability for physicians, medical groups, and health care facilities, with limits that vary by line of business. Target classes are MDs and DOs, nonstandard physicians, physician groups/clinics, community health centers, dialysis centers, surgery centers, x-ray/imaging centers (stationary or mobile), clinical pathology labs, counseling/mental health facilities, mobile medical labs, occupational rehab centers, and other miscellaneous health care facility risks. Will not write emergency room doctors, bariatric surgeons, weight loss practices, assisted living centers, home health care, hospitals, nursing homes or any residential facility. Can offer D&O (health care risks only), including or excluding EPLI; billing E&O (solo physicians and small medical groups only); and managed care organization E&O (except HMOs). American Healthcare Indemnity and SCPIE are B+ rated carriers. Aon Association Services An MGA for The Hartford’s nonprofit D&O and EPLI policies. Limits up to $5 million. Will consider all nonprofits. Will not write colleges, unions, hospitals, clinics and unions. Arlington/Roe & Co., Inc. A broker operating in IL, IN, KY, MI, OH, TN and WI with open limits. Will consider any class. Atlantic Risk Specialists An E&S broker that operates in all states from four national offices with limits of up to $25 million. Will consider all classes relating to social services. Can offer property, liability, EPLI, D&O, crime, fidelity, and abuse/molestation. All carriers are A rated or better. Burns & Wilcox, Ltd. An MGA/E&S broker that operates in all 50 states as well as U.S. territories with limits of $10 million (additional upon request). Target classes are social service agencies, halfway houses, social workers E&O, day care centers, family counselors, rehab facilities, and mental health clinics, Can offer GL, professional liability, property, umbrella, and D&O. Lloyd’s, Colony, Shand Morahan, Scottsdale, James River, and USLI are the carriers. Casualty & Surety, Inc. An E&S broker that operates nationwide with limits of $5 million. Target class is social service organizations. Can offer excess and umbrella. All carriers are A rated. Colemont Insurance Brokers of California, LLC An E&S broker that operates in all states with primary limits of $1 million/$3 million (excess considered). Target classes are drug/alcohol rehab, halfway houses, and foster care/adoption. Can offer GL, D&O, EPLI and property. James River, Arch, Colony, and AIG are the carriers. Evolution Insurance Brokers (EIB) An E&S broker operating in all states with open limits. Will consider all classes. Prime is the B+ rated carrier. First Nonprofit Co. An insurer that operates in DC, FL, IL, IN, MD, MI, MN, OH, PA and SC. Target market is social service agencies including mental health, housing/shelter, youth services and community programs. Will not write low income housing, home health care, nursing homes or hospices. Can offer property, liability, professional liability, sexual abuse and molestation, auto, umbrella, workers comp and D&O. First Nonprofit is rated B++. Great American Insurance Co., Specialty Human Services Division An insurer that operates in all states except FL, HI, LA, MS, OK and TX. Target classes are animal-related, arts/cultural, child day care/nurseries, K-12 traditional schools, food-related, grant making, and churches. Will not write foster placement, adoption, referral agencies, hospitals or other medical exposures. Can offer package lines: property/inland marine, crime, GL, professional liability, auto, and umbrella/excess. All GAIG pool companies are A rated. H.R. Keller & Co., Inc. An E&S broker that operates in NY and PA with limits of $5 million. Will consider all classes relating to social services. Insurance Center Special Risks, Ltd. An E&S broker operating in CT, MA, ME, NH, NY, RI and VT with liability limits of up to $1 million/$5 million. Target classes are boys/girls clubs, Camp Fire councils, community programs/rec centers, counseling services, food banks, Goodwill Industries, group homes, Head Start programs, family service agencies, hearing/speech/occupational therapy, senior centers, sheltered/handicapped workshops, shelters, United Way, YMCAs/YWCAs, and youth rec programs. Will not write adoption agencies, foster care homes/placement, alcohol/drug detoxification facilities, and medical professional exposures including nursing homes and assisted living. Can offer hard-to-find liability coverages such as sexual abuse, professional, and D&O for nonprofits. Markel is the A rated carrier. International Brokerage and Surplus Lines, Inc. An MGA/E&S broker/program administrator that operates in all states with limits as follows: package policy written on either admitted or nonadmitted basis; professional liability and GL (occurrence or claims-made) limits up to $1 million/$3 million; and employee benefits liability, abuse/molestation coverage with sub-limits beginning at $50,000. Target classes are adoption/foster care, developmentally disabled, homeless shelters, safe houses, elderly, substance abuse, youth, and community outreach organizations. Can offer auto, property (including crime and inland marine), and umbrella. All carriers are rated A+. The Irwin Siegel Agency, Inc. An MGA that operates in all states except HI with GL and professional liability limits of $1 million/$3 million; abuse (varies by class of business) up to $5 million ($10 million in some classes); umbrella available up to $5 million. Target classes are developmental disabilities providers, addiction treatment providers, behavior health/mental health providers, and social service providers including youth residential programs. Will not write alternatives to incarceration and locked door programs, home health care, elderly residential, public housing, and transportation. Can offer D&O and workers comp. Carriers are rated A+. Karsanidi Group, LLC An E&S broker that operates nationwide with limits as needed. Target classes are nonprofit, social service accounts, and drug/alcohol rehab. Will not write workers comp. The A rated or better carriers are Great American, Markel, Westport, and Arch. London American Risk Specialists An MGA/E&S broker that operates in all states except AK, HI and KY with GL and professional liability limits of $1 million/$3 million (sub-limit for sexual abuse/molestation $500,000/$1.5 million). Target classes are nursing homes, adoption agencies, foster care, assisted living, drug/alcohol rehab/group homes, and handicapped centers. Will not write lock-up facilities. Can offer property-ACV or RCV, business interruption with extra expense and rents, flood and quake in most states, valuable papers, and inland marine. All carriers are A rated. M.J. Hall & Company, Inc. An MGA/E&S broker operating in AK, AZ, CA and NV with limits of up to $5 million. Target classes are outpatient services (aftercare, support programs such as AA or Al-Anon), crisis, counseling/guidance centers, non-medical drug/alcohol rehab; and temporary stay services (crisis centers, non-medical drug/alcohol rehab, homeless shelters, and mission or settlement houses. Will not write surety. Can write packages which include GL, property, crime, glass, inland marine, E&O; can offer monoline GL for E&O, monoline property, and excess/umbrella. All carriers are A rated. M.J. Kelly Co., Inc. An MGA that operates in AR, CO, FL, GA, IA, ID, IL, KS, MO, NE, NM, OK, OR, TN, UT and WA with limits of $1 million/$2 million. Target classes are guidance counselors, marriage/family, social workers, and occupational. Will not write suicide hotlines, or sexual offenders counseling. Can write D&O and EPLI. Western World, Western Heritage, and USLI are the carriers. Midlands Management Corp. An MGA operating in various states, depending on SIL tax filing in the state, with various limits. Will consider several classes. Can offer some GL. Tennant and Markel (Shand) are the markets. NIF Group, Inc./NIF Pro A program administrator that operates with limits of $1 million/$3 million (umbrella or excess to $10 million). Target classes are drug/alcohol rehab, mental health agencies, residential and support services for developmentally disabled. Will not write 100% of foster/adoption. Can offer property, liability, professional, med mal, crime, auto, umbrella, and abuse/molestation. All carriers are A rated. NorthCoast Excess & Surplus Agency, Inc. An E&S broker operating in OH only with limits of $1 million/$2 million. All carriers are A rated. Prime Insurance An MGA (IEBS)/insurer (Prime) that operates in all states except AK, CA, CT, NH, NY, RI and TX with all limits. Will consider all classes. Prime is rated B+. Quaker Special Risk An E&S broker that operates with limits of $5 million/$5 million. Target classes are physical rehab facilities, adult day care, mental health clinics, halfway houses, substance abuse facilities, and drug testing labs. Carriers are Evanston, Maxum, United National, Landmark American, and Lloyd’s. Roush Insurance Services, Inc. An MGA that operates in IL, IN and OH with limits of $1 million/$2 million (excess/umbrella possible). Target classes are crisis/counseling centers, non-medical rehab centers, temporary stay facilities, and outpatient services. Will not write court ordered placements, work release programs, or detox facilities. Evanston, Essex, and Scottsdale are the A rated carriers. Russell Bond & Co., Inc. An MGA/E&S broker that operates in CT, MA, NJ, NY, PA and VT with CGL and professional limits from $100,000/$100,000 to $5 million/$5 million. Target classes are start-ups, including drug/alcohol rehab, sexual addiction rehab, youth homes, battered women, and children/infant shelters. Can offer property, non-owned hired auto, D&O, EPLI, and workers comp. All carriers are rated A- or better. S.I.U., LLC An MGA/E&S broker operating in CA only with limits of $2 million/$2 million. Target class is shelters for abused children, battered women, orphanages, teen runaways, unwed mothers, homeless, and soup kitchens. Will not write physicians on staff, drug/alcohol, boys homes, criminal release, halfway houses, or foster care. Can offer GL including coverage for professional liability. All carriers are rated A-. Smith Bell & Thompson, Inc. An MGA that operates in all states. Target classes are adult day care, alcohol/drug rehab, behavioral/mental health facilities, counseling services, crisis centers, and community services. Can offer GL, professional liability, D&O, sexual abuse/molestation, property, crime/fidelity, auto, umbrella, and workers comp. THOMCO A program administrator that operates in all states with limits of $1 million/$3 million. USG Insurance Services, Inc. An MGA/E&S broker that operates in all states except AK and HI with primary limits of $3 million/$3 million/$3 million (excess virtually unlimited). Will consider all classes. Can offer D&O, HIPAA, abuse/molestation, and assault/battery. All admitted and nonadmitted carriers are A rated. W.H. Greene & Associates An MGA/E&S broker that operates in NY only with GL and professional liability limits of up to $1 million/$2 million. Target classes are shelters for alcoholics, battered persons, unwed mothers; drug rehab facilities; and guidance, marriage, family, spiritual and occupational counselors. Will not write facilities used for detox, sex offenders, violent criminals or those that employ physicians and/or psychiatrists. Can offer sexual molestation (sub-limit), employees as insureds, and professional liability. All carriers are A rated. Western Experts in Transportation A program administrator that operates in all states except AK, DC, HI, LA, MA, MS and NY with limits of $5 million. Target class is public auto physical damage only. Will not write public auto liability. Acceptance Indemnity (A-) and Zurich (Empire) (A) are the carriers. Western World Insurance Co. An insurer that operates in all states with GL and professional limits of $1 million/$2 million. Target is smaller, lighter risks. Will not write primary detox facilities or facilities with physicians on staff. Can offer GL, property, and professional liability. Western World is an A+ rated carrier, as is Tudor. Yates & Associates Insurance Services, Inc. An MGA that operates in CA only with various limits. Will consider all classes. All admitted and nonadmitted carriers are A rated. * |
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