About the insured:
The business seeking coverage operates a convenience store with underground tanks on the property and gas pumps used for the sale of gasoline. The insured has coverage in place through the state fund, but needed coverage to cover the deductible and defense coverage, which is not provided through the fund.
Quoting the account:
PartnerOne Environmental was sent information on current coverage in place. We were able to provide an indication of pricing within minutes of receiving information, and a formal quote was provided the following day after receiving application information.
After sending the initial quote, we received several questions from the agent about a competing quote and the state fund. Our underwriter did some research on the state fund and found that they offer up to $1M for both 1st and 3rd Party Clean Up, but they do not offer defense and they have a separate $25,000 deductible for each coverage. This meant that if the insured has a claim that triggers both coverages, they will actually have a total of $50,000 in deductibles payable.
In reviewing the policy provided by the agent, the insured appears to be looking to cover only that $25,000 deductible, however PartnerOne does not offer limits that low. Our policy is a primary policy, covering 1st and 3rd Party Clean Up with Defense at $250,000.
At first glance it may have appeared that the PartnerOne Environmental policy is more expensive, but the coverage is actually very competitively priced for the coverage the insured would receive. Additionally, our underwriter discovered that the state fund currently does not have a very large balance, so it may not have adequate coverage to protect the insured. Our underwriter encouraged the agent to look a little deeper into the fund before relying on it in the event of a claim.
The insured and agent researched the state fund and based on the minimal cost to increase the liability limits and add defense to the policy, along with the possible lack of money available through the fund in the event of a claim, the insured chose our policy. Using the information provided, the agent was able to show the insured the importance of securing an insurance policy that would best cover the insured in the event of a loss.