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June 25, 2022

Tribal Insurance Programs: How They Work

Tribal insurance programs provide unique insurance solutions for sovereign nations. The goal is to address protecting the distinctive cultural, financial, and legal requirements of tribal governments.

The size and makeup of tribal nations vary from members residing in small, remote rural villages to large cities and everything in between. And regardless of location and size, they all need to safeguard the tribe's assets from financial losses. Tribal insurance programs generally provide a comprehensive suite of traditional and specific coverages designed to insure the risks of federally recognized Indian nations within United States borders, including their business and gaming operations.

Specialty brokers and program administrators work with carriers to develop coverages for tribal governments and businesses based on each tribe's needs. The assortment of products and services that comprise Tribal Insurance Programs varies. Programs can run from a package of insurance coverage as simple as a group of single-line policies to a collection of multi-policy packages that provide comprehensive layers of protection.

How Does a Tribal Insurance Program Differ from Traditional Commercial Insurance?

Commercial insurance is a must when considering the coverage tribal governments need. Tribal insurance, however, differs significantly from commercial insurance and requires different considerations.

The primary difference between tribal and traditional insurance is that it meets the specific needs of tribal organizations. For example, tribal nations include provisions that protect their sovereignty, meaning they have the right to determine their laws and regulations regarding their internal affairs and governance.

Commercial insurance covers most traditional business risks tribal businesses face, but commercial policies do not cover tribal operations. Instead, they only cover specific areas such as construction, transportation, or gaming.

Who Provides Tribal Insurance Programs?

Insurance companies working with MGAs and program administrators create these types of programs for tribal nations to match the highly specialized and complex needs of sovereign nations. In addition, these policies require careful consideration of risk factors, unique legal requirements, and other variables that may not apply to non-tribal entities.

Some tribal nations operate under federal or state laws that mandate certain levels of liability and worker's compensation coverage. Other tribes choose to self-insure their enterprises through private carriers. Regardless of whether a tribal government or business decides to self-insure, it is critical to know how Tribal Insurance Programs work.

What Does Tribal Insurance Cover?

As an example of a Tribal Insurance Program, the following Tribal Coverages are available from Arrowhead General Insurance Agency's program for sovereign nations. First, it protects both specific and varied tribal risks.

Comprehensive Property Coverage

Includes blanket limits and the critical coverage extensions that matter most for your client's exposures.

  • $1 million per occurrence
  • $2 million aggregate limit
  • $5 million retained limit
  • $10 million self-insured retention (SIR)
  • $100,000 deductible
  • $500,000 sublimit
  • $25,000 sublimit

In addition to comprehensive property coverage, many tribal nations require that their insurance program includes:

  • Building coverage
  • Fire coverage
  • Flood coverage
  • Hail/windstorm coverage
  • Earthquake coverage
  • Mold coverage
  • Risk Management

General, Liquor, and Professional Liability

This coverage includes police, health care professionals, Tribal Officials, E&O, Employment Practices Liability, Cyber Liability, and Fiduciary Liability protections.

  • Professional liability coverage protects professionals from being held liable in civil court for errors they make during their work. This type of coverage can help defend Tribal businesses and employees from claims related to malpractice, negligence, and professional services rendered.
  • Employment practices liability protects employers from civil suits filed by former employees alleging discrimination or harassment.
  • Cyber liability covers losses associated with cyber-attacks on computer systems, networks, or data.
  • Fiduciary liability protects financial advisors from lawsuits claiming that they failed to act in the best interests of their clients.
  • Liquor liability coverage protects liquor license holders from claims made by third parties injured after consuming alcohol purchased from them.

Public Entity Liability

Public Entity provides coverage for public entities like municipalities, school boards, and counties.

Tribal Liability

Provides coverage for tribal governments and tribal officials for acts committed within the scope of employment.


Errors and omissions, also known as professional liability insurance, cover legal fees incurred in defending a claim brought against a tribal nation for damages caused by an employee's negligence, misconduct, or breach of contract. It also covers defense costs when people sue tribes for defamation, libel, slander, invasion of privacy, false light, intentional infliction of emotional distress, or other tortious conduct.

Tribal Workers' Benefits

Includes competitively priced Guaranteed Cost and Loss-Sensitive options that give tribes with excellent risk-management the ability to access significant savings at program inception.

Automobile Physical Damage and Liability

This policy addresses unique tribal nation automobile exposures.

Excess Liability

This liability coverage extends the limits for all primary policies, including Sexual Misconduct, Errors & Omissions, and Employment Practices Liability.

All Lines Aggregate / Self-Insured Retention

Self-insureds are responsible for paying claims when they occur. The SIR is a way to pay claims without requiring immediate out-of-pocket reimbursement. In addition, the program allows insureds to spread unexpected claim costs over several years.

SIRs are calculated based on the total premium paid for the year. For example, if you have a $1 million annual premium, you will set your SIR at 1% of your yearly premium. If your annual premium were $100,000, your SIR would be $10,000. Once established, the SIR will not increase. You may request a change in the SIR amount up until the end of the policy period.

Active Shooter / Deadly Weapons Protection

Protects against lawsuits and potential out-of-pocket damages should an active shooter situation occur where a person comes onto Tribal Nation property or workplace with a gun and begins shooting people indiscriminately. In addition to providing coverage for bodily injury and property damage caused by an active shooter, this coverage also includes defense costs incurred by an insured business and its legal fees.

Unmanned Aircraft Liability and Property Damage

As UAVs (unmanned aerial vehicles) quickly expand into commercial uses, they create new liability and property damage risks for commercial operators.

  • Property Damage

The owner and operator might be liable if a drone crashes into someone else's property. This coverage protects businesses from such events. For example, it covers both physical damage to other people's property and loss of use of their property due to drone crashes.

  • Liability

Should a UAV operation result in injuries or deaths, this coverage protects against lawsuits for these types of claims. It will help pay for settlements, judgments, and defense costs from injuries sustained while operating unmanned aircraft. It also covers damage to any property to buildings, vehicles, and other equipment.

Traumatic Event Expense Coverage

Traumatic event expense coverage insurance helps cover medical expenses incurred due to a traumatic injury. It covers both pre-existing injuries and those sustained during the covered event. In addition, the policy pays out to claimants who suffer from any illness or injury caused by the covered event.

Tribal Insurance Program Costs

Many factors affect the cost of a commercial tribal insurance program. The factors include the usual considerations such as claims history, creditworthiness, business experience, etc. Additionally, the factors impact the program's premium:

  • Tribal Status - Tribes with federal recognition are eligible for more favorable rates than tribes without federal status.
  • Tribal Reservation Size – Smaller reservations tend to have lower rates than larger ones.
  • Location - Insurers often charge higher rates in rural areas than urban areas.
  • Size - Smaller entities typically pay lower rates than larger ones.
  • Exclusions - Certain exclusions apply to specific policies. These include:
  • Deductible - Deductibles vary depending on the size of the company.
  • Coverage Limits - Covers only particular losses.
  • Other Policies - Other policies may overlap with the one being purchased.

Best Tribal Insurance Programs

At Program Business, we understand the challenges to independent insurance agents in finding and gaining access to the markets for hard-to-place, unusual risks in the Excess & Surplus Lines and program business space. So, for example, when you need help with pricing and placing the unique coverages required to protect sovereign nations with the best tribal insurance programs, the Market Directory is here for you. An example of how it works is when doing a quick search of the Program Business Market Directory for "Tribal Insurance." The result returns the Arrowhead Tribal Insurance Program.

Arrowhead's Tribal Program was created in 1987 as the Program for Sovereign Indian Nations, with the assistance of Native American attorneys and tribal administrators. Its goal is to help the Native American community with their specialized insurance needs by offering insurance coverage that recognizes tribal sovereignty established by the Constitution.

  1. works with a select group of agents and brokers nationwide who specialize in placing tribal coverage through our network of top-rated insurance companies with "A" or higher ratings. Its services include risk management to help mitigate a tribe's risks and an in-house claims team that understands tribal law, tribal court systems, FTCA protection, and tribal sovereignty claim issues.


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June 11, 2022

Transportation Insurance and What It Entails

Transportation insurance programs provide a range of standard and unique business insurance coverages for transportation-related businesses. Transportation is a massive industry with many companies providing services that transport cargo and passengers using planes, trains, trucks, and buses to carry people. Transportation infrastructure includes airports, seaports, train stations, and highway rest areas. Companies fall into two types of service provided.

Transportation Company Categories

The transportation sector falls into the two primary business categories of providers and users:

Transportation Providers

The transportation provider category includes all companies that provide transportation services for their customers. Examples of transportation providers include airlines, truck carriers, railroads, bus operators, and shipping lines. They may offer only one form of transportation or several forms of transportation.

Transportation Users.

The transportation user category includes companies moving goods or people from one place to another. These companies may use any mode of transportation but most commonly use ground (land-based) modes such as railroad, truck, ship, pipeline, etc. In addition, they may use air, sea, or space transportation.

What is Transportation Insurance & Who Needs It?

Transportation insurance is a policy that provides coverage for the insured's property while in transit from one location known as the "premises" to another site known as the "destination." The value of goods and the risk while the property is in transit from loading to the destination determine the necessary coverage and premium.

While transportation insurance can apply to personal lines insurance, this report on Transportation Insurance Programs focuses on commercial insurance for businesses shipping products inland and overseas, transporting people, and providing transportation-related business services.

What Do Transportation Insurance Programs Cover?

There are several coverages combined in specific transportation insurance programs. Programs begin by providing protections for normal business operations with liability and property insurance and an array of standard and specific transportation-related coverages.

Besides business insurance policies, transportation insurance programs also safeguard any loss or damage of the goods due to handling or other forms of damage (such as a fire). Such losses might include accidents, explosions, fire, theft, and malicious damages or theft.

Businesses and individuals often use transportation insurance coverage when moving or relocating overseas. For companies that heavily rely on their inventory or goods arriving as expected, transportation insurance programs offer security and a degree of financial protection for their revenues.

Standard Business Insurance Coverages

Financial security within the transportation sector builds a foundation on a base package of business insurance coverages, including:

  • General Liability.
  • Property Damage.
  • Business Interruption.
  • Workers Compensation.
  • Cybercrime.
  • Commercial Auto.
  • Cargo Insurance.
  • Commercial Umbrella, and more.

Best Transportation Insurance Programs

At Program Business, we understand the need for agents to connect with MGAs, and program administrators, to gain access to markets for hard-to-place, unusual risks in the Excess & Surplus Lines and program business space. That's why we created the Program Business Market Directory.

An example of how the directory works is that a search for "Transportation" will direct you to the page with information on specialized transportation insurance programs offered by Amwins Underwriting. The following list of transportation underwriting programs and exclusive brokerage products it provides to independent agents and their clients.

Business Auto

Program administrators provide business auto insurance for many classes, including those whose primary service is not transportation.

Cargo & Physical Damage

A competitive program for local, intermediate, and long-haul trucking companies requires cargo and physical damage coverage.

Cargo/Transit & Cargo Stock Throughput

Coverage for admitted cargo insurance for global trade and transit risks.

Commercial Auto

Commercial auto insurance offers coverage across classes and specialties.

Deadly Assault + Sexual Misconduct

Amwins' exclusive product combines deadly weapon assault and sexual molestation insurance coverage to combat exclusions when unconscionable incidents occur.

Dump Trucks

An insurance program for truckers with dumping trucks with fleets ranging from 1-75 power units.

Environmental Transportation

This initiative gives the ISO "Pollution Liability-Broadened Coverage for Covered Autos. Likewise, it is open to those with trucking and business auto risks.


Freight Brokers' Liability & Contingent Cargo

It protects truck brokers if a contracted trucker has a coverage issue.

Intermodal Transportation

An exclusive package program serves intermodal transportation risks involved in either drayage or over-the-road contingency.

Limousine & Luxury Transportation

An insurance program designed to meet the exclusive needs of the limousine and luxury transportation industry.

Local/Long Haul Trucking

Providing coverage for both for-hire and not-for-hire trucking operations. This coverage's typical vehicle types include truck and truck/tractor-trailer combinations.

Logistics Operations

Admitted insurance program tailored to logistics operations


Supplying coverage for medical transportation that is not for emergencies. It includes special needs transportation, social service groups, and wheelchair vans.

Pizza & Restaurant Delivery

Specific insurance coverage for pizzerias and restaurants, including insuring drivers who deliver food.

Small/Mid-Fleet Trucking Program

A national trucking initiative that goes through a specific selection of retail brokers, offering coverage to drivers that carry up to 24 units.

Public Auto

Our public auto capabilities are managed by a team of underwriters with decades of experience.

RecycleGuard - Recycling Operations

The primary essential insurance provider to the recycling industry.


Program insurance for professional repossession contractors who work with banks, credit unions, and other reputable lending institutions.


A nationwide taxicab program that includes owner-operators and fleets with less than eight passenger seats.


An insurance program for professional, for-hire tow companies that partake in approved ancillary operations that includes auto repair, gas sales, body shop, storage, and other auto-related repair shops.

Workers' Compensation - Transportation

Comprehensive workers' compensation and accident solutions for the transportation industry


A non-admitted packaging program that is supposed to help a substantial network of professional truck drivers who operate on a local, intermediate, or long-haul basis.

Waste Haulers

Comprehensive coverage for non-hazardous waste service operations.

In conclusion, we trust this article is helpful to you in understanding how to choose the best transportation insurance program. We highly recommend you shop around for quotes before making a final decision. serves the needs of independent agents and carriers, MGAs, wholesalers, and program administrators who rely on the insurance distribution system for specialty programs to market their products and services.


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May 28, 2022

Pet Insurance and What It Covers

Pet insurance is a growing market segment. In a State of the Industry Report study, the North American Association (NAPHIA) found the number of pets insured in most cases in 2020 grew by 20% to 3.1 million over 2.5 million in 2019. The dynamics of companion animals living longer and the rising and significant costs of pet care power the growth curve.

Most people treat their pets almost as if they are human, and as such most are considered valued family members. So, it’s natural for most pet owners to provide their animals with quality healthcare. But those sentiments only heighten their concerns about the increasing costs of preventive care, dealing with injuries and critical and chronic illnesses, and the staggering emergency medical care expenses. For many of them, pet insurance is the perfect solution.

A Pet Insurance plan is like health insurance for humans, except it reimburses some medical expenses for a pet's health-related problems. Most policies offer coverage for certain illnesses, injuries, and treatments with various deductibles and payment limits. In addition, the types of pet insurance vary by carrier ranging from multiple coverage choice plans to standard one-size-fits-all plans.

NAIC Pet Industry Overview.

The NAIC described the context of where the pet industry is and a discussion about the situation. They developed a white paper at the 2018 Spring National Meeting. Also, they used the white paper to discuss their report's discoveries. Pet insurance delivers accident and illness coverage for pets, particularly dogs and cats.

Types of Pet Insurance Policies.

Pet insurance is usually available in three types of pet health coverage:

  • Accident-only – exclusive coverage limited to injuries due to accidents with a cap per accident.
  • Accident and illness (A&I) cover accident-related injuries and sickness and disease identified by a veterinarian's diagnosis with caps per accident and illness incidents.
  • Wellness plans cover preventative pet care costs such as annual physical checkups and routine vaccines. However, riders sometimes get it as a rider to A&I plans. This type of comprehensive plan is the most expensive because of the wide range of pet healthcare problems it covers and can include the costs of microchipping and end-of-life expenses.

What Does Pet Insurance Cover?

The coverage will differ. Accident-only and wellness policies are more limited and specific, while an A&I policy includes cancer and most specialty medical care. Particular conditions receive coverage, whether chronic (long-term) or inherited illness, congenital disorders, or diseases.

Pet insurance policies usually include these ailments and conditions with the caveat they vary per pet type, carrier, and policy:

  • Cancer and chemotherapy
  • Heart disease
  • Hepatitis
  • Polycystic kidney disease (PKD)
  • Arthritis, skin allergies, conditions, and rashes
  • Obesity-related Type II diabetes
  • Hip and elbow dysplasia
  • Blood and eye disorders
  • Hypothyroidism
  • Inflammatory bowel disease
  • Ear infections
  • Vomiting and diarrhea
  • Diabetes mellitus
  • Injuries such as ACL ruptures and sprains
  • Poisoning
  • Standard diagnostic tests including ultrasound, X-ray, MRI, CT scan, and blood tests
  • Medical procedures involving hospitalization, surgery, endoscopy, and nursing care
  • Alternative care includes acupuncture, chiropractic, laser therapy, and other holistic treatment
  • Wellness care for vaccinations, flea/heartworm treatment, and spay and neutering procedures
  • Behavioral therapy to alleviate or modify aggression, destructive chewing, and extreme barking

What Is Not Covered by Pet Insurance?

There are a few things that pet insurance does not cover. 

Pre-existing conditions

Pre-existing illnesses or conditions are medical issues that existed before purchasing a pet insurance plan or diagnosed during the plan's waiting period. Although pre-existing conditions are nearly always excluded from pet insurance plans, some policies will include coverage for past conditions if they have healed.

Cosmetic and Elective Procedures and Surgeries

Coverage excludes declawing, tail docking, or ear cropping that they cannot complete because they are a medical necessity.

Routine Care and Wellness Programs

While most pet insurance plans generally don't cover annual vaccinations, spaying, neutering, and teeth cleaning, some services are insurable as policy addendums or riders for an additional premium.


Pet insurance plans exclude paying for breeding or pregnancy, although some carriers offer a rider to help pay for the services.

Most pet insurance policies do not count pre-existing conditions and experimental treatments, including their diagnoses, when deemed experimental, investigational, and not acceptable therapy as established by a state veterinary medical board.

There are some exclusions. It does not cover grooming, non-veterinary medical service, or dietary expenses. Although, some plans offer prescription food and supplements. Many pet insurance policies decline coverage for pets after a certain age. They enforce a waiting period before the policy begins to pay. Although some comprehensive pet insurance plans expand to include dental illnesses such as gum disease and dental accidents, most do not without the coverage added as a policy rider.

Non-Veterinary Pet Insurance Riders

There are additional coverage options with insurance riders. For instance, some non-veterinary services and problems are:

  • Lost dog advertising and rewards
  • Boarding fees for dogs while the owner is in the hospital.
  • Cemetery and burial fees for pet deaths due to accidents
  • Liability and property damage coverage

Does Pet Insurance Include Liability Coverage?

Many policies only offer limited protection against animal bites and other types of bodily injury. Often benefits apply only to animals owned by the policy owner. Others specifically exclude cats and birds. Still, other policies provide coverage only for animals kept inside the house or yard. Therefore, the policyholder must have purchased the policy within 30 days before the incident.

In addition, many policies exclude certain breeds from coverage, and they vary widely among insurers. For example, one carrier excludes pit bulls, bull terriers, rottweilers, chows, mastiffs, malamutes, wolf hybrids, and coyotes. Other carriers limit exclusions for specific breeds for greater availability.

Pet Insurance Costs

A standard A&I policy can have a premium between $500 - $600 annually. The price will vary due to several factors, including:

  • Pet breed
  • Age
  • Zip Code
  • Coverage type
  • Policy limits for reimbursement
  • Deductible amount

Best Pet Insurance Programs

Independent agents also have possibilities in the luxury and companion animals business, such as marketing equine and canine insurance programs. The Market Directory is the place to find the best pet insurance programs. It's the quickest way to find and access hard-to-place, unusual risks in the Excess & Surplus Lines and program business space.

Your search of the Program Business Market Directory would return results for Amwins Underwriting. In addition, it offers specialty programs for these unique prospective insureds.

  • Animal Clubs, Associations & Special Events – a non-admitted program designed to protect clubs and associations from third-party claims.
  • Animal Mortality - a dedicated program designed to protect against the loss or theft of horses and domesticated animals.
  • Animal Trainers - an insurance program offering general liability coverage for various types of animal trainers. They can add professional liability on an occurrence form.
  • Equine (General & Professional Liability) - provides comprehensive professional and general liability coverage for horse owners, trainers, and equestrians. A deep understanding of the sport drives them.


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May 25, 2022

Finding the Best Collector Car Insurance for Client Needs

The market for Collector Cars and Collector Car Insurance is growing. The U.S. represents the largest market for classic cars, with nearly $15 billion in annual revenue and a projection of $19 billion by 2024 for the U.S. collector car market.

What is a Classic vs. Collector Car?

There are factors that separate collector and classic cars. Vintage cars are older than 25 years, while collectible vehicles include late models, exotics, luxury cars, and super-performance automobiles. While most collector cars receive storage as garage queens, some collectors drive their cars mainly for pleasure.

The manufacturing date determines whether a car is antique, vintage, or classic within the car collector industry.

  • Vintage cars produced between 1919 and 1930 received the classifications of "survivor" or "restored" (according to the specifications of the original manufacturer) status.
  • Antique cars manufactured in 1975 or earlier than 45 years. As with vintage vehicles, the status is "survivor" or "restored" (according to specifications) status. Some models from the 1950s are iconic symbols of America's postwar golden age. In that era, one of six jobs was due to manufacturing and sales of automobiles in the U.S.
  • Classic cars have a manufacturing date of 2002 or earlier than 20 years old.

What is Collector Car Insurance?

Collector Car Insurance is like a traditional auto policy. Its coverage depends on the vehicle's value. Additionally, it also depends on usage, storage, and other factors. For example, a Collector Car policy covers property damage and bodily injuries, whether driven for pleasure or attending collector vehicle events. Should the vehicle suffer damage in a covered event or create liability insurance losses, the insurer pays for repairs or losses up to policy limits. Deductibles are usually lower than offered on standard auto policies; some policies offer deductible-free coverage options.

What are the Benefits of Using a Collector Car Insurance Specialty Program?

Generally, specialty programs for collector car insurance are less expensive than standard insurance policies. For example, the annual insurance premium can be 500 percent more than those from a specialty broker. However, traditional insurance policies usually cover the daily driver, but they don't always include the extra benefits of collector car coverage.

Shopping among providers is an excellent suggestion because providers and policies are different. You will find various service levels, rates, types of coverage, and claims handling that vary between programs. Beyond comparing rates, Collector Car Insurance is a "service" that comprises customer service, claims handling, and perhaps most importantly, a knowledgeable staff experienced in insuring collector vehicles.

Types of Car Insurance

The automobile insurance industry offers three types of policies:

  • Actual Cash Value (ACV).
  • Stated Value.
  • Agreed Value.

Actual Cash Value

ACV coverage is the type found in standard auto insurance policies. As the name indicates, the policy pays claims on the insured vehicle's depreciated "book" value because everyday cars lose value as they age.

Stated Value

Stated Value insurance is better than an ACV policy for collectible vehicles. They allow the insured to "state" a value for their collectible vehicle greater than its depreciated "book" value. And conversely, if insuring the collector car is too expensive, a Stated Value policy is an option to get coverage up to policy limits.

For example, suppose the insurance premium for a rare vehicle with a total value of $1 million is too costly for an insured who instead purchases a $100,000 Stated Value policy. That way, they have some coverage for non-total losses while accepting the risk of a total loss beyond their $100,000 policy limit. So it's not an ideal situation, but it is an option better than the perils of bare risk.

Agreed Value

Usually, an "agreed value" will determine the classic car insurance policy. Its features give collectors peace of mind knowing their car's insured value is mutually agreed upon before claims occur. Agreed Value is the best option for collector car insurance because it is the only type of coverage that guarantees the agreed-upon full value receives payment in a total loss minus any deductible.

An Agreed Value Policy has some benefits, as there is no depreciation and no misinterpretation because the predetermined agreed value is what it is. Therefore, both the insured and insurer decide on an acceptable value of the vehicle using market data, the vehicle's condition, and other factors when setting up an Agreed Value policy.

Since there is no depreciation factor in settling claims of Agreed Value policies, the settlement will include all applicable taxes and fees associated with the claim in total loss cases. Because of the set value, the insured and their agent will need to adjust the policy limits manually should the car's value change.

Standard Auto Insurance versus Collector Car Insurance.

Market value and factory-installed accessories determine the standard auto insurance claims. Unfortunately, that approach to settling insurable losses doesn't work for classic car collectors who invest substantial time and money into restoring their vehicles. For them, it's crucial to have the protection of agreed value coverage in the case of a total loss settlement.

Some specialty collector auto policies offer typical daily-use auto insurance with stated value coverage. Essentially, such stated value policies form actual cash value coverage with a maximum limit. For example, the insurance company pays claims based on the indicated market value of the vehicle after a loss. So, If the vehicle's market value has dropped after purchasing the coverage, then the payout is based on the lower dollar amount.

Considerations for Collector Car Insurance Programs.

If you have clients or prospects who collect classic cars, that's a good situation because of their favorable demographics. You’ll want to court them for their other insurance needs. That means it’s usually advantageous to work with a broker who can package additional coverages.

Another significant benefit of classic car insurance policies is the agents, adjusters, service reps, and others usually are familiar with the intricacies of collector car insurance programs. Because they're specialists in insuring rare and antique cars, they can give your clients the best service and help when they need it.

Who Qualifies for Collector Car Insurance?

  • Someone who has had a driver's license for five years.
  • Excellent driving record with a maximum of one moving violation or one at-fault accident within the last three years with a maximum of two per household. Any DUI or reckless driving violations must be ten years or older.
  • Households must have at least one regular-use vehicle for each licensed driver, although some exceptions for full-time students and retired couples are possible.

What Kind of Cars Qualify for Classic Car Insurance?

Vehicles that have worth as collectible and show value through appreciation are eligible with these limitations that require the car is:

  • Driven only occasionally and never as a daily driver with a typical cap of 7,500 annual miles.
  • Never utilized in racing, including timed events, driver's education, or commercial purposes.
  • Stored in a locked, enclosed garage with the potential for alternate garaging options on a case-by-case basis.

Additional Insurance Coverages for Classic Car Collectors

There are other coverages specifically available for classic car insurance:

Roadside assistance: Although standard policies offer roadside assistance, they allow for towing the vehicle with a hook. Whereas towing a collector car requires a flatbed truck.

Increased replacement cost: Pays the difference in claims when the classic car's value rises past the agreed-upon value; this coverage will cover the difference.

Auto show medical reimbursement: Provides liability protection that pays medical and legal costs of a person injured while visiting the insured's space at a collector's car show or similar event.

Spare parts coverage: Pays to replace spare parts for collectible cars that are damaged or stolen stored while stored in a garage or during a classic car show.

Classic car insurance carriers can provide your clients with most standard types of car insurance, including liability, personal injury protection, uninsured motorist coverage, and comprehensive collision coverage.

Collector Car Insurance Costs (and what factors affect the price)

Collector car insurance typically covers unique, vintage, and classic vehicles at a lower price than a standard auto insurance plan. In some cases, the cost is substantially lower. Factors affecting the rates for collector car insurance include the vehicle’s type and condition, the purchase location, and the driver's age and driving record. Lowering the mileage limit for classic cars and storing them in a climate-controlled garage year-round are other ways to reduce insurance premiums.

Best Collector Car Insurance Programs

It's natural for agents to seek the best collector car insurance programs and coverage for their insured. We created the platform to make it easy for agents to connect with carriers, MGAs, wholesalers, and program administrators. Performing a search of the Program Business Market Directory for collector car insurance programs returns a listing for American Collectors Insurance. Its staff of knowledgeable Collector Car Insurance specialists is ready to help you design a comprehensive program to fully insure your client's needs for affordable specialty classic car coverage.


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April 29, 2022

Real Estate Investor Insurance Programs, Costs & More

There are 2.5 million real estate investors in the US, according to Connected Investors. Types of investors range from multi-national corporations to local and private investment firms and affluent individuals. Some are flippers seeking quick profits, while others rent their properties to create long-term income and price appreciation.   

Real estate investing is in a heated growth market because of the high returns and relatively lower risk. Redfin reports real estate investors acquired a record 18% of the homes sold in the US during the third quarter of 2021. They snatched up more than 90,000 homes in Q3 2021, 10% more than Q2 and 80% over the previous year.  

The investment into real estate is substantial, with the average purchase price over $400,000. As a result, investors need a wide array of protection from potential disastrous losses. This guide to Real Estate Investor Insurance Programs details the most common policies.   

What is Real Estate Investor Insurance?  

Real Estate Investor Insurance is aptly named, although some refer to it as Landlord Insurance or Rental Property Insurance. Regardless of the name, it represents a package of policies that safeguard insurable risks that individual and corporate real estate investors, trusts, family offices, and property managers face while operating their businesses.   

Types of Real Estate Investor Insurance  

Real estate investors use insurance packages designed to work together to protect property owners and managers from many losses. Consequently, these losses could result from tenant claims and liability lawsuits.  

 The broad categories are property or hazard insurance and liability coverage. Find details on the range of coverages found in Real Estate Investor Insurance Programs below.   

Landlord Insurance  

Landlord Insurance combines protection from losses covered by three types of coverage, including property damage, liability, and loss of rental income.   

Property Damage aka Hazard & Fire Insurance 

Like a homeowners or dwelling insurance policy, landlord insurance protects from losses caused by fire, wind, hail, snow, and other covered perils that damage structures on the rental property. It also covers losses to personal property, including furniture, appliances, electronic equipment, and more. It does not protect renters' personal property. Therefore, it's important to review coverage for exclusions that might require additional coverage or policy endorsements, such as vandalism. Coastal properties have wind and other weather exclusions, so a thorough review of coverages for real estate investor insurance policies is imperative, especially in those affected areas.   

Liability Insurance  

Sometimes called General Liability, this policy covers accidents involving people on insured rental property. It covers tenants, guests, vendors, maintenance, and other visitors to the site. A typical General Liability policy protects from lawsuits for injuries claiming Bodily Injury caused by individuals not employed by the insured. Coverage includes paying medical bills for in and outpatient treatment and rehabilitation costs associated with the claim. In addition, Property Damage is a coverage feature that pays to replace or repair stolen and damaged property when the landlord is liable for the loss.   

Loss of Rental Income  

When a rental property during an insurable event suffers damage, the loss of rental income insurance pays for lost rental income. However, losses from natural disasters such as floods or earthquakes are not part of this package. Coverages for floods and earthquakes are available through separate policies. Keep in mind that in the current environment of fast escalating rental costs, loss of rental income pays out on the fair market value of the rental property. It means it will likely be less than what the landlord collects, especially in regions where the rents are escalating.  

Sewer/Water Line/Flood Insurance  

Many forms of damage from water, such as sewers, water lines, and floods, are excluded from standard Hazard Insurance policies. For example, flood damage and water line damages are distinct losses that require separate coverages specific to the peril.    

Flood Insurance 

Flood insurance protects property from damages from outside water entering the rental property, including structures and contents. The NFIP is a program run by the federal government. It controls the selling of flood insurance and distributes it through agents. Then, these agents package it into insurance coverages for real estate investors.    

Flood insurance helps pay for losses to a physical structure and the foundation of a rental property, including damage to HVAC, mechanical, plumbing, and electrical systems. Detached structures require a policy endorsement or individual coverage. Although payouts for primary residences use replacement cost coverage, rental property losses get settled using the actual cash value method. Coverage can include clothing, furniture, appliances, electronic devices, window coverings, freezers, and spoiled food. Fine art, expensive jewelry, currency, precious metals, stock certificates, and guns are usually excluded and require a policy endorsement.  

Exclusions to Flood Insurance include losses from moisture, mold, and mildew damage when owner neglect is the cause. Cars, trucks, motorcycles, and other self-propelled vehicles are exclusions. Likewise, flood insurance does not cover patios, gazebos, decks, fences, and pools. Also, flood insurance policies do not include living expenses.   

Water and Sewer Backup Coverage   

Standard hazard insurance policies found in Real Estate Investor Insurance Programs omit coverage for damage due to water and sewer backup events. Separate coverage is available to repair damage when water reverses course and backs into the rental unit due to a clogged drainage line.   

Tenant Rent Default Insurance  

Rent default coverage helps cover lost income when a tenant defaults on rental payments. The tenants' actions cause financial hardships because eviction and other procedures can take months for the property owner to regain control of the unit and more time to find a new tenant. The landlord's bills for the mortgage, maintenance, insurance, taxes, and other operating expenses never stop, making this coverage a must for most rental property owners.   

A typical policy will reimburse for up to six months of lost rent when tenants default on payments, get evicted, or skip out of the unit. Standard coverage extends only for three months of reimbursement when a court order, military deployment, or a sole tenant's death is the cause of the loss. Vacation, seasonal and short-term rentals do not qualify for this coverage, and neither do losses due to a tenant temporarily vacating an uninhabitable unit.   

Builder's Risk  

Builder's risk insurance is property coverage for buildings and structures under construction. It covers builders constructing new properties and commercial property owners who may have routine property appearance updates or elaborate renovation projects. In addition, it pays for monetary losses when unexpected insurable events occur during construction or remodeling.  

Workers' Comp Insurance  

Real estate investors that hire employees are subject to state laws that require them to carry Workers' Compensation Insurance. The policy helps pay an employee's medical bills and cover wages lost because they suffered a work-related injury or illness. Workers' compensation insurance will typically shield employers from legal actions taken by employees who get injured on the job.   

Umbrella Insurance  

Umbrella insurance extends the liability coverage that protects landlords and property owners from liability claims. It can range from claims brought by tenants, visitors, guests, and vendors for injuries and libel and slander claims. As the name implies, an umbrella policy extends the limits over the top of the insured's existing liability coverages.   

Real Estate Investor Insurance Costs (and what factors affect the price)  

Rental properties are at greater risk for damage and other insurance-related incidents, making them more expensive to insure. The variances in real estate values and types of rental operations make it impossible to name a typical cost for Hazard insurance. However, short-term rentals are usually higher because these renters typically have little interest in maintaining the property. In addition, the insured's claims history, creditworthiness, and other factors affect the premium.   

Some coverages fall into somewhat standard ranges. For example, the annual premium for Loss of Rental Income is about $300 per rental unit, and the cost of a typical flood insurance policy runs about $700 per year.   

Best Real Estate Investor Insurance Programs  

It's a complicated and time-consuming process to find the best Real Estate Investor Insurance Programs. That's why we developed the Program Business Market Directory. The goal is to make it easier for agents to connect with insurance carriers, MGAs, wholesalers, and program administrators.   

A quick search for "Real Estate Investor Insurance Programs" on the market directory leads to top-notch programs like the one provided by RSG National Specialty Programs. Ryan Specialty was founded in 2010 to become the most trusted trading partner for specialty risk solutions and services that retail agents, brokers, and insurance carriers need. 

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April 25, 2022

Bundling Insurance: Programs, Costs & More

Bundling is a term used in the insurance industry to describe when several insurance products are grouped into one package, or “bundle,” then sold to you. Because risks vary, insureds require multiple coverages to obtain complete protection, which is complicated. In addition, bundling Insurance Programs simplify the process and produce savings and convenience for carriers, brokers, agents, and policyholders. 

What is Bundling Insurance?

Bundling Insurance is not an actual policy. Bundling insurance programs is a term for having two or more insurance policies from the same provider sold together. The sale can be two separate policies like auto and home or one policy for personal and business use. Bundling products is cost-effective for insurers who share some of their savings through the efficacy of bundling with their multi-line customers. Personal lines providers often bundle products for their loyalty programs Brokers, MGAs, and program administrators use the Bundling Insurance Programs concept extensively in business insurance applications.

What are the Benefits of Bundling Insurance Programs?

The advantages to bundling insurance programs include saving money on your premiums with bundle discounts. 

  • Savings: Getting several different insurance policies from the same insurer can save money. Depending on the type and number of policies, some bundling insurance plans save 15% or more on premiums.

  • Convenience: Buying multiple policies from one company is simpler than buying multiple policies from different companies. Various policies can be managed from the same account and serviced by the same insurance agency. 

  • Reduce Churn: Studies prove that the more policies a client have with the same company, the less likely they will shop their coverages. Besides generating additional revenue, reducing customer churn lowers marketing costs.

If there’s not enough clarity in cases where coverages overlap and which type of insurance covers the item, one insurer should ideally be working the policies. In this guide to Bundling Insurance Programs, we’ll cover bundling insurance programs and what type of insurance products can be bundled.

Types of Insurance to Bundle 

Bundling Insurance packages are sold through personal and commercial lines agencies. The list below presents a brief description of the typical coverages found in both.

Personal Lines 

Home and Auto insurance are the most common insurance bundle. But companies and agencies can combine any of these coverages to suit the needs of their clientele. Personal lines companies give loyalty benefits to their monoline customers, but they typically save the discounts for home and auto bundles, or a renters insurance and auto bundles

  • Home Insurance

  • Auto Insurance

  • Renters Insurance

  • Motorcycle/life/boat/toy Insurance

  • Life Insurance

Commercial Lines

Due to much higher potential losses and the diversity of clients’ business models and risk exposures, the bundling insurance programs in commercial lines are more complex. Usually, Specialty Lines and Program Business managers develop them. 

While standard business policies, such as General Liability, Commerical Property, Workers’ Comp, and more, virtually every niche or business found in a SIC code needs coverage customized to their unique opportunities, assets, and risk exposures. 

It takes specialists with industry knowledge and expertise to pull appropriate coverages together into a Bundled Insurance Program. To illustrate this concept, we’ll use the Arrowhead General Insurance Agency as our example. In particular, we’ll focus on its Auto Service & Repair Package, which we found listed in the Market Directory

The platform connects wholesalers, MGAs/MGUs, program administrators, and carriers with independent agents looking to place business. It enables agents to locate the best Bundling Insurance Programs quickly, make contact and begin the underwriting, quote, and submission process.

Arrowhead General Insurance Agency is an independent national insurance program manager for P&C commercial and personal insurance products.

Auto Service & Repair Package

A commercial lines package with an Admitted A+ (XV) rated carrier by A.M. Best Company. Submit accounts in any size in total account premium and receive instant online quotes on qualified accounts below $50,000. Coverages for mechanical/collision repair and more.

Arrowhead’s Package program bundles specialized commercial insurance coverage written by Universal Underwriters formerly. This bundle of garage package policies includes Property, CGL, and Commercial Auto.

  • Commercial Property/GL (required), Commercial Auto

  • All size accounts considered

  • Instant online quotes for eligible accounts up to $50,000

  • Schedule up to 25 units on the commercial auto

  • Loaner vehicles acceptable

  • Incidental used auto sales, gas sales, car washes and roadside repair

  • Incidental towing acceptable (up to three units)

  • Auto detailing and window tinting

  • Shuttle service within general area of repair facility

  • Limited used tire sales

  • Vehicle driving radius up to 200 miles

  • Multiple direct billing options available

Target Classes of Business

  • Auto body/collision and repair shops

  • Auto glass repair/installation shops

  • Auto quick lube shops (oil and lube)

  • Brake shops

  • General/mechanical repair

  • Muffler shops

  • Retail auto parts and accessories stores (new parts only)

  • Retail tire stores

Note: Arrowhead’s program for towing and other classes not mentioned requires production commitment and a contract. 

Coverage Highlights

  • Business auto liability and physical damage

  • Crime - employee dishonesty, forgery or alteration, money and securities

  • Equipment breakdown coverage

  • Garage keepers - direct or legal liability basis

  • General liability and employee benefits liability

  • Property coverage extensions

  • Umbrella liability - excess and umbrella

  • Carrier: Zurich

  • Available in all states except AK, FL, HI, & LA

Bunding Insurance Costs 

Due to the complexities involved with Bundling Insurance Programs and the vast array of products and risks that are potential components in insurance bundles, it’s impossible to offer price points or suggested costs that would be helpful. 

Best Bundling Insurance Programs

In the fast-paced insurance environment, having convenient access to markets is an advantage provides to independent agents seeking the best Bundling Insurance Programs and other products and services from wholesalers, MGAs/MGUs, program administrators, and carriers. In addition, a quick search for auto service and repair shops would return the Arrowhead General Insurance Agency, a premier provider for this niche. 


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March 31, 2022

Hurricane Insurance: Liability, Programs, Costs & More


Recent history proves the growing need for Hurricane Insurance Programs. The Atlantic hurricane season in the US is an annual tropical cyclone period in the Northern Hemisphere that runs from June through November of each year. Since 1980, the average season has yielded 14 tropical storms, seven hurricanes, and three major hurricanes. 

In 2022, experts forecast an extended-range forecast season that predicts an above-average hurricane season along the Atlantic seacoast. Their estimates for activity are 13–16 named storms, 6–8 hurricanes, and 2–3 major hurricanes this year. 

Since 1980, the US has experienced 258 weather disasters, with the most damage caused by tropical cyclones totaling $946 billion, with an average cost of $22 billion per event. Hurricanes are also the cause of the most natural disaster-related deaths, with 6,593 recorded between 1980 and 2020. 

What is Hurricane Insurance & Who Needs It?

Hurricane insurance is neither an individual policy nor a standard form of insurance. Instead, it is a term used to describe a combination of insurance policies that work together to protect homes and businesses from losses due to hurricane damage. Due to the severity and frequency of hurricane damage from water and wind, these perils require separate policies as integral parts of a hurricane insurance program. 

Those who reside in a hurricane-prone zone should seek as much insurance coverage as possible because hurricanes can produce devastating damages that standard insurance policies usually exclude. 

Types of Hurricane Insurance

Although, as mentioned, no actual "hurricane insurance" exists, a combination of wind, flood, homeowners, and property insurance creates a comprehensive hurricane damage insurance program. The following guide to hurricane insurance programs details the typical policies. 

Wind Insurance

Windstorm policies cover hurricanes and other weather events such as tornadoes, cyclones, and high-speed winds. While most people residing outside of hurricane-prone regions find wind coverage included with their standard homeowners policy, it is an exclusion for those living in hurricane-prone areas.   

Homeowners who live in hurricane zones should check if they need an additional endorsement or a separate deductible for wind damage. Individual coverages for windstorm and hail insurance are sold as respective policies or endorsements. Wind insurance is available through a state's Fair Access to Insurance Requirements Plan or a state's Beach plan.

Georgia, Louisiana, Mississippi, New Jersey, and New York provide insurance for hurricane damage. These states cover people living on islands and other difficult areas to reach by land or air. People living along the seacoast should be aware of these options. 

Flood Insurance from FEMA

A Federal Emergency Management Agency (FEMA) report indicates that flooding occurs in 90% of natural disasters, including inland flooding, flash floods, seasonal storm flooding, and hurricanes. Standard homeowners and business property policies do not cover flood damage caused by a hurricane or other weather events. Therefore, a separate flood insurance policy is necessary to protect from water and storm surge damage from natural disasters.

FEMA manages most flood insurance. The agency makes coverage available from local agents who place the business through National Flood Insurance Program (NFIP). NFIP flood insurance policies provide insurance with maximum limits of $250,000 for property and $100,000 for contents. 

The Flood Insurance Agency (TFIA)

TFIA is alternative private flood insurance that complements the National Flood Insurance Program with brokers offering exclusive commercial flood insurance programs such as the Flood Flex coverage through Amwins Underwriting. Its commercial flood insurance eliminates expenses traditional flood insurance omits. In addition, it endorses the policy to increase the loss payable for Coverage A: Building Coverage of a commercial building flood policy from 10% up to 100%.

Insureds receive a single payment for the covered flood loss and use it at their discretion for loss of income, additional expenses, depreciation, or their deductible. 

First dollar primary building/contents coverage is available up to $10,000,000 for properties located in A, X, and V zones, including almost all coastal properties $5000, $50,000, $100,000, $250,000, and $500,000 deductible options. A rate-lock feature provides an insured with options to lock in pricing for up to three years, regardless of losses incurred. Policies are certified lender compliant, ensuring that all federally-backed banks and lenders will accept policies.

Home Insurance

Even the most comprehensive homeowners insurance has exclusions for hurricane damage. Policy language varies between carriers. So, depending on location, particularly near the coast, it's crucial to understand what an individual homeowners policy does and does not cover to find the best hurricane insurance.  

Residents of high-risk coastal states must nearly always purchase separate windstorm insurance. It is available from a local agent or state-run insurance pool. Sometimes it can be added as a rider to the primary homeowners policy.  

CAT Deductibles

CAT is the acronym for a catastrophic event property deductible and is unique and different from a standard property insurance deductible. Nineteen states have hurricane deductibles, including Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia, plus Washington DC. 

Hurricane deductible

Homes in Washington, DC, and those 19 States are vulnerable to hurricane damage and are subject to hurricane deductibles separate from their homeowner insurance deductibles. 

A standard $300,000 homeowners policy has a typical $5,000 fixed deductible. However, it does not apply to the Hurricane deductible. Instead, insurers use two to five percent of the home's value to calculate the Hurricane deductible. That equates to $2,000 and $5,000 per $100,000 homeowners insurance coverage.

Named storm deductible

Hurricane deductibles are usually triggered by a named hurricane in the region, although severe tropical storms can also cause the hurricane deductible requirement. However, the hurricane deductible's timing remains in effect for any damage occurring before the weather system is downgraded. Each state has its own rules regarding Hurricane deductibles. 

Windstorm deductible

CAT wind deductibles typically range from one to five percent of a home's insured value. In the case of wind damage, the standard deductible would not apply, and the wind deductible would kick in instead. Some carriers use a CAT deductible for other wind and hailstorm events.  

For underwriters to determine a deductible structure, they factor in an insured's risk profile, making it essential for policyholders to know what type of storms require a CAT deductible from their insurer.

Hurricane Insurance Programs for High-Risk States

Certain states offer separate windstorm and hailstorm insurance policies. Check your state to find if it has a Fair Access to Insurance Requirements Plan or a beach plan. For example, some states offer various insurance coverages insurance for their coastal residents. 

In Florida, the Citizens Property Insurance Corporation (CPIC) provides flood and wind insurance to people who cannot buy insurance from another company. Florida's Citizens Property Insurance Corporation (FPIC) provides wind insurance for residents who cannot get coverage in the standard marketplace. 

North Carolina Coastal Property Insurance Pool offers windstorm, hail, and other policies in 18 eligible coastal communities in North Carolina. 

South Carolina Wind and Hail Underwriter's Association provides windstorm and hail damage insurance in some areas of South Carolina. 

Texas Fair Access to Insurance Requirements Associations provides wind and hail coverage in some parts of Texas. Texas Windstorm Insurance Association offers wind and hail coverage to homes in 14 coastal counties and five communities in Harris County. 

Hurricane Insurance Costs (and what factors affect the price)

The annual cost of a separate flood policy is about $800 and going up as FEMA rolls out a fairer methodology for ratings with higher-risk locations facing higher rates. For a windstorm example, the Texas Windstorm Insurance Association shows an average annual residential premium starting at $1,700. Add the $1,600 average yearly homeowners premium to arrive at $4,100 as an average hurricane insurance program cost. Of course, the rates for each Hurricane Insurance Program will vary depending on location, insurance carrier, the coverage amounts of the various policies, and the level of deductible the insured chooses.

Best Hurricane Insurance Programs

That goal is the reason for developing the Program Business Market Directory. We connect wholesalers, MGAs/MGUs, program administrators, and carriers with independent agents looking to place business. The robust platform enables agents to contact and begin the underwriting, quote, and submission process.

A keyword search for "flood" insurance yields results, including Amwins Underwriting. Some details for its Flood Flex program are in this post. In addition, it offers clients innovative commercial property insurance solutions for out-of-pocket expenses that insureds face after their business suffers through a flood.

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March 22, 2022

Terrorism Insurance: Liability, Programs, Costs & More

The need and demand for Terrorism Insurance Programs are growing under the current geopolitical tensions and war. For example, there is a need for Terrorism Insurance Programs beyond the Terrorism Risk Insurance Act (TRIA) that was made into law by the US Congress in 2002 to respond to the attacks on 9/11. 

Until the horrific 9/11 attacks, terrorism insurance was typically written as a no-cost inclusion in most general insurance policies because carriers had few historical losses from terrorism with scant data available to estimate future losses. Although they had the 1993 attack on the World Trade Center and the bombing in Oklahoma City in 1995, insurers did not view domestic or international terrorism as a severe underwriting risk when issuing commercial insurance policies. 

Changing Conditions Created a Need for Terrorism Coverage and Terrorism Insurance Programs

Besides the massive tragic loss of innocent lives, the damages from the 9/11 attacks amounted to the costliest terrorist incident in US history. The estimated financial toll from September 11 was around $100B. Two hundred insurers took part in the $33B in insured losses in property claims, business interruptions, liability, workers’ compensations, event, and life insurance. And the aftermath of those events was the cause of significant and ongoing changes to the insurance industry’s outlook and management of terrorism risks. 

According to the Insurance Information Institute, the 9/11 attacks triggered staggering losses to the insurance industry. Unfortunately, those losses quickly made terrorism insurance coverage too expensive when available. TRIA requires insurance carriers to make terrorism coverage available to their commercial policies, but it is optional for policyholders with no requirement to buy the coverage.

Initially, the TRIA was a temporary three-year program to have the Federal government share monetary losses with insurance carriers on commercial property/casualty claim payments due to a terrorist attack. It has been reauthorized repeatedly, with the current Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) expiring on December 30, 2027. 

What is Terrorism Insurance & Who Needs It?

While a traditional TRIPRA policy intends to fill a void for businesses seeking protection from terrorist attacks, it is not a complete solution. Instead, it has a war event certification aspect that makes it inadequate for many companies. As a result, the insurance industry answered with Standalone Terrorism insurance coverage, a specialty policy covering losses due to terrorism. 

Most Standalone Terrorism insurance programs contain property policies that protect insureds against losses caused by damage to their property, which contrasts with terrorism coverage provided by commercial property policies that cover risks of other losses. 

Terrorism insurance is purchased predominantly by organizations at a high risk of losses not covered in their other commercial property policies. Mainly because the cost of terrorism coverage from the insurers who provide them is too high or because the terrorism coverage provided by the insurers isn’t broad enough.

Types of Terrorism Insurance

Terrorism Insurance versus TRIA/TRIPRA

Post-9/11, insurers refused to provide terrorist insurance and removed terrorism coverage from traditional commercial policies that now contain explicit language to exclude terrorist attacks. The fallout from the 9/11 attacks left many businesses in need of protection against the increased threat of terrorist activities in the post-9-11 world. The government’s solution was TRIPRA, which initially was designed to be temporary legislation that would allow insurers to recover and enable them to offer terrorism insurance to consumers. Instead, it required that insurers provide terrorism insurance and establish a backstop to protect against a substantial financial loss caused if a terrorist attack occurred.

Certified Act Of Terrorism

The following description comes from the Insurance Risk Management Institute (IRMI)

A Certified Act of Terrorism is a terrorist act that is eligible for coverage under the Terrorism Risk Insurance Act (TRIA). Such acts are certified by the Secretary of the Treasury, applying criteria spelled out in TRIA. To qualify as a certified act of terrorism, the incident must: (1) be a violent act or an act that is dangerous to human life, property, or infrastructure; (2) cause damage within the United States or other areas of US sovereignty (e.g., a US embassy, airplane, ship); (3) be committed as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the US government by coercion; and (4) produce property-casualty (P&C) insurance losses in excess of $5 million. Insurers paying claims in response to certified acts of terrorism qualify for federal reimbursement.

What Terrorism Insurance Programs includes 

Terrorism Insurance Programs cover most types of losses from terrorism, including property damage, business interruption, and liability without government certification of war. Terrorism insurance policies require people to get special coverage for property overseas and travel to different countries, but not domestic travel.

Here is coverage highlights from Program Brokerage Corporation (PBC), a leading Terrorism Insurance Program provider found listed in our Market Directory. 

  • Limits available up to $250,000,000 for Property Damage and Business Interruption

  • Active Assailant sub-limit of $1,000,000 subject to scheduled values

  • Active Assailant up to $3,000,000 available on a referral basis

  • Sabotage coverage included

  • Threat and Hoax sub-limit of $100,000

  • Denial of Access available on a referral basis

  • Zero deductible available

  • 24-month policies available

  • Coverage available in all states

  • No minimum premiums

PBC offers Terrorism coverage for all classes of business nationwide. Policies are stand-alone and cover acts of terrorism certified or uncertified with no required claim amount.  

What Terrorism Insurance Excludes

TRIPRA excludes terrorism resulting from acts of war. Most personal and commercial insurance policies also have exclusions for warlike actions, including insurrections and rebellions, resulting in losses or damages from a war. War is considered an uninsurable catastrophic risk, and Workers’ Compensation is the only type of insurance that includes injury or death from an act of war.

Terrorism insurance doesn’t cover losses from other disasters, such as earthquakes, tornadoes, hurricanes, floods, or fires. Coverages typically not covered include commercial auto, financial guarantee, burglary, surety, professional liability, farm owners, life, health, medical malpractice, or personal lines.

Nuclear, biological, chemical, and radiological (NBCR) events may be excluded from coverage. These exclusions reflect that some human-made catastrophes are essentially uninsurable and therefore not covered by insurance. For example, under the Terrorism Risk Indemnity Act, if a state permits some NBCRs and an insurer in that state doesn’t offer them, insurers can exclude those types of events from their policies. However, if all states permit NBCRs, insurers cannot exclude them unless they have a specific exclusionary clause.

How Does Terrorism Insurance Work?

Terrorism insurance programs work to fill a need in the gap between risks and what is available beyond the TRIA. Losses are only insured under a terrorism insurance policy if certified as acts of terrorism by the US Treasury Department. This situation means that the terrorist act must be violent and be driven solely by the desire of one or more individuals to coerce U. S. civilians or government officials. 

As for TRIA, an act shall not be considered an act of terrorism if the total insured loss does not exceed $5 million per occurrence. The act must also result in at least $100 million worth of damage to be considered a terror attack. In addition, a new definition of “terrorism” has been added to include domestic and foreign acts of terrorism.

Factors to Consider Regarding Terrorism Insurance 

About 60% of US companies have terrorism insurance. When deciding on terrorism programs these factors are significant.

  • Business Location—The likelihood of a terrorist attack is lower in rural and residential areas than in urban areas. Cities with large populations and airports, train stations, and bus terminals have a higher risk of terrorist attacks.

  • Industry—Certain industries—like the energy sector—are at a higher risk of being attacked by terrorists. If your industry is a high-risk target, such as energy, banking, finance, or retail, you may want to purchase terrorism insurance.

Terrorism Insurance Costs (and what factors affect the price)

Premiums for terrorism coverage range between $19 and $49 per million of covered property, depending on the size and type of business. The cost typically represents 3 to 5 percent of a company’s property insurance premiums.

Best Terrorism Insurance Programs

Finding the best terrorism insurance program is a challenge, as with most specialty coverage. Getting good results takes time to research, so we created the Market Directory. We make it convenient for agents to find and connect with carriers, MGAs, wholesalers, and program administrators. Both sides use our robust agency database to expand reach with new programs and appointments to find new products and coverages.

Top results from searching for terrorism insurance programs on our Market Directory include Program Brokerage Corporation (PBC). It offers a new Terrorism product for all classes of business nationwide. The policy will be written standalone for acts of Terrorism certified or uncertified with no required claim amount. 

Consider these facts about why our terrorism coverage may be better than TRIA for many clients: 

  • Since 9/11, an event on US soil has never been certified as an act of Terrorism, which means TRIA is untested for its loss payment. 

  • TRIA sets a high bar for claims with significant fiscal policy triggers, deductibles that have increased year over year since 2016, and Federal certification.

  • TRIA is a backstop solution for the insurance industry, while our policy is tailored for your client’s individual needs.

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March 1, 2022

Tow Truck Insurance: Liability, Programs, Costs & More


The market for Tow Truck Insurance Programs is large and growing. The annual revenue for the motor vehicle towing market in the US is $8.4 billion, with an average yearly growth of 4.7%. There are 9,100 towing firms and 31,000 licensed tow truck operators. In addition, tow truck businesses often provide incidental services, such as mechanical repairs, vehicle storage, and emergency road repair services.

What is Tow Truck Insurance & Who Needs It?

Tow truck insurance programs protect tow truck drivers and businesses that provide automotive, roadside repair, and disabled vehicle assistance services. Beyond regular tow trucks, other types of specialty tow trucks are in use by individuals or businesses for these and other business models: 

  • Roadside assistance.

  • Auto body repair.

  • Salvage and auction.

  • Repo contractors who work for lending institutions. 

Types of Tow Truck Insurance 

All tow truck entities are required at a minimum to carry liability insurance known as tow truck liability. Virtually all tow truck companies need and carry additional standard business coverages and industry-specific insurance. This guide to tow truck insurance includes the following list with descriptions and details on the most common coverages towing operations require. 

Commercial Auto Liability Insurance

A Commercial Auto Liability insurance policy helps pay for financial losses due to accidents that occur while the owner or employee operates a company-owned vehicle, a hired or personally-used auto, or any other type of auto used in business operations. It's important to note that a personal auto insurance policy excludes coverage for vehicles in use by a business.

While a business auto insurance policy protects vehicles used for business-related trips, a commercial auto liability policy covers dedicated vehicles built to do specific jobs. Commercial auto liability insurance applies to vehicles owned by or operated in a business. For example, it protects a business from liability for damages caused by accidents involving its cars. For instance, it compensates people injured in vehicle accidents. It also pays to replace or repair damage to property and other vehicles when the business's vehicle is involved and the driver is found at fault. A standard policy comes with a $1 million limit.

Physical Damage Coverage

Physical Damage Insurance is an insurance term to describe the policies that group together to compensate vehicle owners for losses from damage to their commercial vehicles. It is a collection of policies that protect against such perils as collisions, vandalism, fire, and theft. For example, collision insurance covers damage to business vehicles involved with other vehicles or objects. And a comprehensive policy provides coverage for losses due to fire, theft, vandalism, and other sources. CAC insurance covers damage to your automobile from fire, theft, and vandalism. Another option is Fire and Theft with Combined Additional Coverage (CAC) is, a limited form of Comprehensive coverage specific to specific heavy trucks. It is also known as Specified Perils or Limited Comprehensive insurance.

Garagekeepers Insurance

Garagekeepers liability insurance protects trucks and autos kept or stored in the tow truck business's care, custody, or control. There are three types of Garagekeepers insurance. 

  • Direct Primary Garagekeepers is one type of liability coverage that compensates for losses without respect to whether the business is legally obligated to pay or not, such as losses from weather events, theft, and vandalism.

  • Legal Liability will only pay for damage to a customer's vehicle due to the insured's negligence, thus making it legally responsible.

  • Direct Excess is also a coverage that protects against losses without liability assessment. For example, it will pay for excess loss beyond the limits of the customer's policy. 

On-Hook Insurance

On-hook insurance safeguards the client's car when hooked up to a tow truck, rollback, or wrecker company tow vehicle. However, cars in tow are not covered by any other business policy. Any damage to the towed vehicle, whether from an accident or disaster, needs the liability protection of an on-hook insurance policy because the high price of cars that can end up on a wrecker's hook poses a substantial financial risk to the business.

Wrongful Repossession

Wrongful repossession liability is insurance to protect tow truck operators for liability claims of damages they cause due to their errors, omissions, negligence, or failure to render professional services. Usually, it insures against claims of possessing the wrong vehicle or not getting the paperwork and legal order from a lender before putting the repo vehicle on the hook. 

Typical Tow Truck Insurance Program Coverage & Limits

Below are the types of tow truck insurance with usual policy limits usually bundled into Tow Truck Insurance Programs because they are considered necessary by the Tow Truck risk management services that demand them.

  • Auto liability - $1M

  • General liability - $1M

  • Physical damage - $500K

  • On-hook/cargo - $500K

  • Garagekeepers - legal liability or direct primary

  • Excess limits available – usually $5M

Besides the specialty coverages outlined here, towing operators will also need a range of traditional property and casualty business coverages including Workers’ Comp, EPLI, Crime, and more. 

Tow Truck Insurance Costs (and what factors affect the price)

The variety, location, and size of tow truck businesses are significant enough to make providing average cost estimates complicated. Other factors, including the business owner's experience, the business's claims history, and more, are points of underwriting considerations. In general, most single truck towing operations can expect an annual premium of $5,000 - $7,000 for commercial auto and property damage coverage. Physical damage starts around $1,000 and up to $3,000, while on-hook coverage has an average annual premium range of $4,000 - $10,000. Finally, wrongful possession insurance varies depending on how much of the business's revenue repossessions represent. Annual premiums can run $10,000 for operations whose yearly revenue is 25 percent or more from the repo business. 

Best Tow Truck Insurance Programs

At, we know the time and trouble it takes to resource market for the best tow truck insurance programs. So, it's a common need and stress point for agents to access and compare top programs easily and equally challenging for carriers, MGAs, wholesalers, and program administrators to connect them. 

We created to serve both sides of the insurance distribution system for specialty programs. Agents seek to find the top programs for tow truck insurance; they can find what they need quickly and efficiently. Amwins Underwriting is a wholesale brokerage operation with globalized underwriting solutions for many specialty coverages, including Tow Truck Insurance Programs. We invite you to check them out.

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February 17, 2022

Forestry Insurance: Liability, Programs, Costs & More


Forestry insurance programs play an essential role in safeguarding the financial health of businesses that operate within the forestry and timberlands sectors. According to the United States Department of Agriculture (USDA), the US forest products industry accounts for four percent of the nation's total manufacturing GDP, producing over $200 billion in products every year. Forest lands in the US include 823 million acres of forests and woodlands that comprise one-third of the nation's landscape. More than half of the timberlands in the US are privately owned, with most public ownership in Western states.

What is Forestry Insurance & Who Needs It?

Although the terms are somewhat analogous, for purposes of this Guide to Forestry Insurance Programs, we distinguish between forestry insurance and forest insurance. 

Forestry insurance protects a wide range of logging operations and timberland owners. The programs help pay for covered losses to farmers, ranchers, loggers, wood yards, chipping operations, sawmills, planer mills, pulp and paper mills, wood dimensioning, lumbering, land clearing operations, and more.

Forest insurance is property coverage for the trees and forests themselves. It covers the gamut of mature, growth, and predominantly sapling forests and includes shrubs, plants, grasses, vines, bushes, and hedges. The coverage helps to pay for losses resulting from fire, lightning, floods, storms, insects, animals, theft, vandals, and other causes of tree and vegetation losses. 

Types of Forestry Insurance 

Forestry, aka arboriculture, businesses have unique and traditional needs for the various forms of forestry liability and property insurance coverages found in robust forestry insurance programs. While every forestry operation has individual insurance requirements, nearly all need the mix of coverages detailed in the list below. 

Truck & Tractor Coverage

Truck and tractor insurance, also called commercial truck insurance, protects trucker and business insureds from damage and liability-related losses.

State laws require commercial truck insurance, which usually is regulated by a trailer's hauling capacity. The Federal Motor Carrier Safety Administration (FMCSA) also requires specific insurance requirements for trucks in use for interstate destinations. In addition, the FMCSA requires those seeking an Operating Authority (MC number) first to obtain liability insurance specifying coverage for claims of bodily injury and property damage.

Interstate truckers must also meet the following minimum coverage limits per FMCSA rules, with the limit depending on the type of freight hauled. For example, the FMCSA rules for minimum insurance limits, types of cargo carried, and the vehicle size that dictates the least allowable coverage are: 

  • $300,000 for non-hazardous freight moved in vehicles under 10,001 lbs.

  • $750,000 for non-hazardous freight moved in vehicles over 10,001 lbs. 

  • $1,000,000 for oil carried by For-Hire & Private Carriers

  • $5,000,000 for other hazardous material hauled by For-Hire & Private Carriers

The liability portion of the coverage protects the public and drivers and truck owners from accidents where the trucker is at fault. Bodily injury covers medical bills to others, including drivers, occupants, and pedestrians injured in an accident with the truck driver at fault. In addition, property damage helps pay for replacement and repair damages to the property of others in an accident caused by the truck driver.

Inland Marine

Inland marine insurance covers property used in multiple locations and is not permanently assigned to or installed in a specific area. It protects mobile equipment, machinery, tools for logging, and other forestry industries equipment while in transit to a job site. It can also cover specialty equipment and property that has exceptional value.

Coverage for rental reimbursement for rented or leased equipment, miscellaneous tools and equipment, trailer and spare parts, and replacement cost coverage is usually available as a policy endorsement. 

Equipment Breakdown Insurance

Equipment breakdown insurance covers the expensive machinery and equipment a logging business needs to operate. The nature of the business causes wear and tear. The coverage helps to cover costs to repair and replace it. In addition, insurers can identify specific pieces of equipment such as processors, feller bunches, slashers, and sliders to cover with equipment insurance. Additionally, they should consider the value of their entire fleet, including trailers, backhoes, and other tools and equipment.

Logging equipment can also include specialized machines like a skidder or loader designed for a particular purpose. For example, a skidder may have a bucket with a large capacity, while another type has a smaller capacity but can handle more material. For example, a skidder may have tracks or wheels. The size and weight of the machine will determine how much insurance coverage it needs.

Contractor's Equipment Floater 

This coverage helps pay costs related to damage to logging equipment resulting from vandalism, lighting, hail, and other specified perils.

Cargo Insurance

Cargo insurance protects the load a truck carries while transporting it. Shipping trees, lumber, and associated goods represent a potentially high risk for lost, damaged, hijacked, or even destroyed products that can occur in transit. From raw to finish, transporting products represents a significant possible loss that cargo insurance covers. Cargo insurance protects cargo moved by trucks, utility vehicles, and other vehicles specific to the industry. In addition, it protects against losses and damage due to collisions or vehicle overturns.

Coverage includes liability for damage to other people's property, repair or replacement expense of damaged goods (with loss payable clause), and loss proceeds for total losses. It also covers replacement costs for perishable items and related freight and storage charges. Cargo insurance coverage extends to theft, collusion damages, and other risks involved in freight shipping. In addition, a standard cargo insurance policy requires motor carriers to have $750,000 - $1,000,000 minimum limits. 

Pollution Insurance

Pollution liability insurance protects a business against losses when found at fault for accidents that cause environmental contamination. Pollution insurance is a form of gap insurance kicks in to pay for losses not covered by a general liability policy.

The list of substantial environmental risks in logging and forestry operations is lengthy. And although logging operations help decrease the fuel load for wildfires, they can pollute streams, destroy the natural habitat, cause erosion, and release toxic chemicals into the environment. Also, because the logging business produces considerable non-point pollution, it is susceptible to liability claims, legal actions, and catastrophic cleanup costs. In addition, pollution insurance helps to cover losses from bodily injury claims, cleanup, and property damage caused by logging operations.

General Liability

General liability safeguards logging operations from third-party bodily injury claims, property damage, or both. The policy helps cover costs of lawsuits and settlement fees to a customer, employee, visitor, or vendor who suffers injuries where the company is found at fault. Payouts can be for actions resulting in financial loss, a physical injury, or both.

Workers Compensation 

Workers Comp is a legal requirement in virtually every state. As a mandate, it is a legal mechanism to protect employees who work for companies operating in the state and who suffer work-related injuries. Workers Compensation covers any medical care costs they incur, and it provides wage compensation while they recover and rehabilitate from their injuries. 

Commercial Property 

Commercial property covers offices and other structures and their contents. It can extend to yard operations outfitted with logging equipment and storage areas for staging cut timber awaiting transportation. Additionally, it covers losses stemming from natural causes such as lightning, hail, and other specified perils.

Commercial Auto

Commercial auto provides coverage for auto liability & auto physical damage with a combined single limit (CSL) of $1M for select logging contractors. 

Additional Coverages

While this list highlights the types of policies found in forestry insurance programs, it is not complete as circumstances vary per client needs. Your program manager can assist you with additional types of coverages for your forestry insurance customers. Examples of other policies include:

  • Loggers broad form property damage covers loading and unloading, fire suppression, and damage to forests and timberlands  

  • Excess Liability

  • Crime

  • Aircraft / Helicopter Insurance

  • EPL, and more

Forestry Insurance Costs (and what factors affect the price)

The insureds who can benefit from a Forestry Insurance Program include small family-run businesses to multinational corporations—as such, providing specifics on the costs for the wide range of policies found in forestry insurance programs is not possible. Furthermore, underwriters look carefully at claims and coverage history, credit ratings, driving records, and more before determining a premium. 

Individual factors for commercial truck insurance cost include the trailer's size and the value of both the trailer and the contents it is hauling. And the type of contents it is transporting. For example, small loggers will find the average premium for a standard $1,000,000/$2,000,000 General Liability Insurance policy runs between $1,000 - $1,200 annually depending on the business's location, size, revenue, and claims history.

Best Forestry Insurance Programs

Naturally, when you research for the best Forestry Insurance Program, you want quick, helpful results. That is where the Program Business Marketplace Directory helps. It serves both sides of specialty program distribution by making it convenient for carriers, MGAs, wholesalers, and program administrators to connect with agents with a new program.  

A great example is when you search the platform for Forestry Insurance Program best suited for your needs, you'll find return Arrowhead General Insurance Agency. Since its inception in 1983, it has continued to lead the industry with innovative, pioneering solutions that simplify the insurance experience, build trust, and reduce uncertainty. 


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January 31, 2022

Commercial Insurance: Liability, Programs, Costs & More


In this guide to Commercial Insurance Programs, you will find details on the usual types of business insurance policies found in them. 

The Small Business Association (SBA) counts nearly 32 million small businesses in the US. Of those, 81 percent, or 26 million, are considered "nonemployers" because they have no employees. The remaining 19 percent represents 6 million small businesses that have paid employees. The SBA estimates roughly 20,000 large companies with more than 500 employees in the US.

What is Commercial Insurance & Who Needs It?

Virtually all businesses, large and small, need commercial insurance protection. Commercial insurance shields its insureds from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits can ruin a company without the proper coverage.

If you have a payroll, you have peril. However, depending on business practices and activities, many solo entrepreneurs may also need commercial liability insurance and other forms of protection.

Business owners insure their longevity and assets – business and personal – against substantial and potentially crippling losses due to unforeseen events and catastrophes. And many companies need to purchase extra insurance to comply with state laws. However, since state laws regarding required insurance coverage differ, it's wise to determine the commercial insurance coverages needed by each state where your clients operate.

Types of Commercial Insurance 

Small businesses and large businesses have similar basic needs. The following coverages for liability, property, and Workers' Compensation are found in nearly all commercial insurance programs. Most small businesses use a Business Owners Policy (BOP) as the basis of their insurance protection. 


A business owner's policy (BOP) bundles commercial insurance policies into a single package. A typical BOP combines General Liability, Property Damage, Business Interruption (BI), Equipment Breakdown, and sometimes other coverages.  Simplifying and combining the policies helps to lower the premium. A description of pertinent commercial Insurance coverages is below. 

While many small businesses are candidates to buy a BOP if the business meets specific requirements, for example, underwriters must consider the business a low-risk operation. They only insure businesses with fewer than 100 employees that operate in a small office or compact, safe workplace environment, earn less than $1 million annually, and require less than 12 months of continuous BI coverage. 

Larger-sized businesses have more complex needs a BOP cannot address, and the following list of coverages found in most Commercial Insurance Programs applies to businesses of all sizes. 

General Liability

General liability insurance is known as Commercial General Liability (CGL) when sold as standalone coverage outside a BOP. General liability insurance helps to pay claims against the business for bodily injury or property damage to others who are not employees. For example, an everyday liability claim occurs when a visitor to the business's premises is injured in a slip and fall accident. The policy will provide payment for their medical expenses. 

Property damage pays to repair or replace accidental third-party property damage caused by the business or its employees to a customer's property or other persons. It also helps pay legal fees and settlement costs for advertising or personal injury claims against the business for libel, slander, and copyright infringement. 

Product liability is an endorsement or separate policy to a BOP or CGL that protects businesses against risks of bodily injury or property damage claims caused by their products away from their business location. Any company that manufactures, distributes, or sells products is at risk of lawsuits claiming harm to people or property from its products.

Commercial Property Insurance

Commercial property insurance compensates losses to a business's insured assets due to fire, theft, or other covered natural disasters or events. The coverage protects against property damage to buildings, structures, and the business's equipment in its operations. In addition to the damage to property, it also helps to pay to replace a business's stolen property for building owners and renters. 

Commercial Auto

Commercial auto insurance is like personal auto insurance. It is necessary because company-owned vehicles are excluded from personal auto, requiring commercial auto insurance instead. A business auto policy, as commercial auto is also known, provides liability, collision, and comprehensive insurance for business vehicles. Collision pays expenses to other drivers for repairs and medical expenses. Comprehensive helps cover vehicle repairs or medical costs to owners and employees when they get into an accident.

Besides covering company cars in use by a business, commercial auto can also cover many other vehicles with specific uses for the business. Some examples include delivery vans and trucks, dedicated use vehicles such as forklifts, bobcats, service and utility trucks, food trucks, and more. 

Equipment Breakdown

Equipment breakdown is sometimes known as boiler and machinery insurance. Often part of a BOP, it covers repair and replacement expenses, including time and labor costs, to a business's mechanical, electrical, and computer equipment when unexpected failures strike them. In addition, the policy helps defray expenses due to lost income, spoiled inventory, and related costs occurring while the business and equipment are in the restoration process. 

Equipment breakdown insurance covers these types of business equipment: 

  • Mechanical – manufacturing equipment, pumps, and refrigeration units.

  • Electrical – boxes, panels, cables, and transformers. 

  • Mechanical – motors, engines, generators, elevators, and escalators.

  • Electronic & Communication – computers, tablets, network devices, phone and voice mail systems, security, monitoring equipment, and fire alarm systems.

  • Environmental – HVAC systems, boilers, and pressure equipment

Equipment breakdown insurance is recommended even when a business rents the space it occupies. That's because a third-party such as a power or cable company can adversely affect a business by causing its equipment to fail or malfunction. 

Workers' Compensation

As it is commonly known, Workers' Comp is mandatory per state law nearly everywhere. It protects employees with coverage for medical costs, rehabilitation expenses, and lost wages when they suffer a work-related injury or illness. Check the state laws where your insureds operate to know the specifics and requirements.

Cyber Liability

Cyber Liability insurance, aka Data Breach Insurance, covers losses from cyberattacks, data breaches, and the downtimes they cause. Examples of cyber liability events include malware, ransomware, code injection, DDoS, phishing, and inside threats. In addition, insurance companies require stricter and more effective security safeguards before underwriting or renewing cyber liability policies. In addition, they understand that controlling system access through privileged access security systems is essential to mitigate liability and lower cyber risk threats from external and internal actors.

Business Interruption (BI)

Business interruption insurance is often found in a bundle of coverages inside a BOP. It covers losses related to a business forced to shut down due to an unforeseen event temporarily. BI covers lost income, operational expenses, and business property rent when an insured event causes a business to stop or cut back its daily business operations. Take note of a growing trend among property owners that demand their renters carry adequate BI coverage as a hedge against a tenant's inability to make rent payments because they have lost their business income. 

Depending on the carrier, policy, and program, you will also find Professional Liability Insurance (E&O Insurance), Employment Practices Liability (EPL), and Umbrella (Excess) coverages are often included and advisable in some BOPs and virtually all comprehensive commercial insurance programs. Check with your Program Administrator for your options. 

Commercial Insurance Costs (and what factors affect the price)

The costs of commercial insurance vary widely and are dependent on numerous factors. These factors include the type of business, the history of insurance claims, financial health, annual revenue, number of employees, and location; all affect a policy's costs. For specific examples, a  standard BOP runs about $600 - $700 annually, and Commercial Auto costs range from $500 to $1,500 per year. 

Best Commercial Insurance Programs

Naturally, when you begin a search for the best commercial insurance programs, you want a convenient solution that provides quick, accurate results. For example, the Program Business Market Directory connects wholesalers, MGAs/MGUs, program administrators, and carriers with independent agents looking to place business. 

A quick search on our platform for commercial insurance, and you would find the listing for Chamber Insurance Agency Services. It is a national Program Administrator, and a wholesale agency providing agent and brokers access to exclusive national Program Administrator programs and an array of commercial insurance products of nationally recognized insurance carriers. Its options for BOPs include Umbrella, Professional Liability Insurance, and Employment Practices Liability Insurance.

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January 26, 2022

Drone Insurance: Liability, Programs, Costs & More


The use of drones for commercial and recreational purposes continues to grow, which drives the market for Drone Insurance Programs. According to Forbes Business Insight, the commercial drones market will hit $6.30 Billion by 2026. The Federal Aviation Administration (FAA) gives drones the classification of Unmanned Aircraft Systems (UAS). Drones are also known as unmanned aerial vehicles (UAV), and their uses are increasingly more complex, ranging from recreational purposes to commercial and military applications. There are 861,036 drones registered with the FAA, broken into 329,114 commercial and 528,336 recreational usages. 

What is Drone Insurance & Who Needs It?

Drone insurance protects the UAS and UAS owners against damage to the aircraft, accidents, and more. In 2022, there are no current FAA insurance requirements for recreational or commercial drone use. However, there are laws in several states regulating drones. Check the National Conference of State Legislatures (NCLS) website for state-by-state drone laws. 

Although insurance is not a statutory requirement, anyone who owns or uses a drone is an excellent prospect to purchase the protection drone insurance offers. Those using drones for commercial purposes are obvious candidates for drone insurance coverage. In addition, many commercial drone businesses have clients with drone risk management needs that require them to provide certificates of insurance with a minimum level of drone liability insurance as a contractual condition of doing business with them. 

Recreational users are also prospects for drone insurance to protect their property and the liability of causing physical harm to persons or damaging their property. Essentially, drone coverage is advisable for anyone who owns a UAS for any purpose to cover others and their property at risk and themselves from their drone usage.

Types of Drone Insurance

The most common coverages available for drones are liability and hull insurance. There is also payload insurance that protects components and gear, which often are more costly than the drone itself. Examples include LIDAR lasers, cinematography-type cameras with advanced thermal and multispectral imaging, sensors, and gimbal stability systems. 

Agents writing drone insurance programs need to include ground equipment such as remote controllers, laptops, tablets, dedicated ground stations, batteries, base stations, GPS, surveying equipment, and other electronic systems, plus transportation and storage cases, and more. Finally, drone insurance for personal injury and non-owned coverage is available for drone owners and pilots. 

The full array of drone usage is evident by viewing the USG Insurance Services page in its Program Business Market Directory listing for drone insurance programs. 

USG Drone Target Classes:

  • Remotely or Autonomously Piloted

  • Aerial Filming & Videography

  • Construction

  • Property Inspection & Real Estate

  • Line Inspections

  • Agricultural Applications

  • Aerial Commercial Photography

  • Crop Dusting

  • Border Surveillance

  • Pipe/Power Line Surveillance

  • Suspect Tracking

  • Communication/ Broadcast

  • Disaster Response/ Relief

  • Movie Production

  • Damage Assessment

  • Aerial New Coverage

  • Atmospheric/ Weather Research

  • Mail/ Freight Transport

  • Critical Infrastructure Monitoring

  • Flood Mapping

  • Damage Surveying

  • Real Estate Mapping

  • Mining

  • Sporting events Coverage

  • Wildlife Monitoring

  • Roofing Investigations

  • Locating individuals

  • Fire & Explosion Investigations

  • Underwriting Surveys

Drone Coverage Under Homeowners and Renters Insurance Policies for Non-Commercial Usage

Many homeowners and renters policies include certain types of coverage for non-commercial drone-related incidents that are not available for coverage through drone insurance programs. 

Liability – Protects against claims of bodily injury or property damage due to drone operations by the homeowner, family member, or other people with permission to operate it. Coverage may extend to privacy issues should the owner be sued for accidentally recording a person who has not given their consent to be recorded or for claims of intentional invasion of privacy.  

No-fault medical coverage – Helps to pay losses for accidental injuries to others who are not family members when caused by a drone in non-commercial use. 

Theft or loss of a drone – Inexpensive drones costs are below the homeowners policy deductible. So, only expensive models with costly video recording, GPS navigation, and other such gear are covered for replacement if the drone is stolen or lost. Depending on the policy and carrier, expensive items may require an endorsement or separate policy for the most comprehensive coverage.

Coverage While Flying the Drone

Drone liability insurance helps pay bodily injury or property damage claims against commercial drone operations. It covers the liability risks for drone owners and approved operators. Drone liability insurance is unique because some insurance companies offer options to allow insureds to purchase an annual plan or obtain coverage by the month and even by the hour when flying the drone. However, only monthly and yearly plans extend drone coverage nationally, while hourly options limit the scope to a defined area or destination designated in the policy. 

Policy limits for a typical drone liability policy start at $500,000 and go up to $1 million in liability coverage. However, liability limits for up to $25 million per occurrence are available from specific drone insurance programs.

Coverage While Not Flying the Drone

Videographers, photographers, and drone operations need ground-based insurance to complement their drone coverage. Ground-based insurance covers the on-ground equipment drone operators use in public and approved private areas while their drones capture aerial images or other commercial applications. Non-flying insurance includes personal and advertising injury, 3rd-party bodily injuries, and property damage claims resulting from ground-based operations and premises liability.

Physical Damage Coverage

Hull insurance for drones will pay for physical damage to repair or replace the UAV it covers. Also known as hull and machinery insurance, it primarily pays for total loss, partial damage to the UAV and its equipment, and for other salvage-related costs and dry-docking expenses. Labor and legal costs related to drone operations are also covered under hull insurance. Optional physical damage coverage can include theft and loss of use.

Drone Insurance Costs (and what factors affect the price)

Commercial drone insurance programs offer coverage like most typical commercial insurance policies. However, the pricing structure is uniquely variable depending on the type of use for an individual drone and the risk it and its operators face while in use. Due to the variety of applications for drone usage, insurance rates and payment plans vary widely. Typical drone liability insurance plans start at $5 per usage hour up to $1,000 for an annual plan with limits starting at $500,000. 

There are apparent trends in pricing between the costs of hull insurance and liability insurance. While hull insurance premiums tend to rise over time, the premium for liability coverage can trend lower as insurers track consecutive policy periods without claims against them.

Best Drone Insurance Programs

When agents seek the best drone insurance programs, they find the Program Business Market Directory is the right resource. For example, a quick search for drone insurance programs, and you would discover USG Insurance Services

USG Insurance Services provides innovative solutions for harder-to-place commercial insurance accounts, including unique drone insurance programs. Writing coverage in all states with a growing network of 20+ branch offices nationwide, it has a $220+ million book of business that surpasses industry growth standards. Its agents appreciate that USG does not divide its Producer/Brokers by territory, coverage, or account size.

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