By Allison McGreal, Assistant Vice President
Many insurance transactions are driven by contract requirements and PartnerOne Environmental is seeing more account opportunities in NY due to insureds having inadequate coverage. When considering the best option for your client, here are some things to consider:
Carrier: Many contracts, particularly those for larger general contractors or government work, require admitted carriers. They may also stipulate that the carrier rating should be no less than AM Best rating of A Rated paper or financial stability rating of no less than X, for example. Placing your clients with an E&S market initially may cause them problems as they bid future projects and their coverage may be rejected.
Coverage: Is the policy providing coverage that they may need for future work in New York? Many contracts require Action Over (NYLL) coverage to win a bid. Some insurance policies written for New York contractors may exclude this critical coverage or may have other exclusions such as work performed in the 5 boroughs, any operations deemed “down state,” higher deductibles, etc.
Limits: While clients may not wish to purchase high limits initially, many larger projects in New York particularly, will require the applicant to contractually carry higher limits via a primary GL policy or a combination of Primary & Excess coverage. Many carriers have limited the threshold on limits they’re willing to provide. If you place your client with a carrier unwilling or unable to provide the higher limits, they may find themselves missing out on valuable work for their firm by being passed over for a contractor able to meet these requirements.
Any of the above might be reason to have a bid rejected outright or at least until the contract requirements are fulfilled. Being able to go back to your current carrier to provide coverage in a timely manner may be a “make or break” situation for the insured winning a bid. If the current carrier rejects these requests, you may find yourself having to move coverage midterm.
When offering insureds coverage options, it’s important to consider the long-term concerns or benefits by selecting the right carrier. Premium is only one component of the decision. Thinking about the type of work performed by your client, the nature of the contracts they sign and projects they bid, and helping them make an informed long-term decision on which carrier best suits their needs is a crucial part of an agent’s job. So as you consider the above please note that PartnerOne Environmental is able to offer broad coverage to avoid these pitfalls. We provide coverage through an A+ XV AM Best rated carrier and we can offer admitted paper through the New York Free Trade Zone (NYFTZ) for NY domiciled accounts with no standard exclusions for work downstate nor for Action Over. We can also offer up to $15,000,000 limits when contractually required. PartnerOne also has the ability to package with the Workers Compensation or Business Automobile, Site Pollution, Tanks, etc. to place all coverage with one program.
For more information or to discuss a New York account, please contact us.