The phrase, “the devil is in the details”, applies to many issues but especially to the subject of insurance. One of the many difficulties in making an informed buying decision is trying to determine whether competing proposals are similar. If they are different, how do they differ, and more importantly, what is that difference worth?
This article is an attempt to show some of the major attributes that differentiate the various programs, as well as their similarities. The value placed on these differences will vary with the perceived needs of the individual buyer. The questionnaire, on which these responses are based, was sent to the major suppliers of coverage to the ski industry. One supplier, R.J. Salisbury, was in the middle of restructuring their program at presstime, and could not respond.
These respondents consist of insurance carriers, as well as managing general agents and brokers. These managing general agencies perform many of the tasks normally associated with an insurance company. These can include, underwriting, pricing, policy issuance, loss prevention, and claims administration.
In a survey of this type, a number of generalizations and assumptions had to be made. Because of the nature of insurance contracts, any summary cannot provide an exact representation of the coverages. For the sake of clarity, much of the questionnaire was in the form of Yes/No type answers. However, many of the replies contained comment, explanations or amplifications, which had to be deleted. Table I highlights the major attributes of each program. It describes the types of coverage usually provided, the program limits, the carriers utilized, and their Best’s rating, if available.
In Table II, the terms used and the descriptions of policy exclusions are generalizations that have to be accepted as such. For example, a similar exclusion from two different programs might provide widely different protection, depending on the circumstances involved, and the specific wording. One policy might exclude an activity because of the insured’s “knowledge or consent” of the activity. Another carrier, whose policy exclusion has the same name, might instead provide coverage, if the exclusion specified that the activity needed to have the insured’s “knowledge and consent” for the exclusion to be triggered. One word can be the difference between an insured and an uninsured loss.
Each submission to any of these programs is individually underwritten. As a result some programs have a list of standard exclusions that they use and then may delete them by endorsement, if appropriate. Other programs have fewer exclusions in their basic form, but will add additional exclusions if the underwriting review warrants them. Table II shows that an exclusion may be deleted by endorsement. That does not mean that it will be. Exposure, loss history, legal climate, and the scope of the activity will determine the extent to which coverage is provided.
| Supplier / contact | Type | Coverage | Limits | Carrier | Best’s |
|---|---|---|---|---|---|
| Allied Specialty Insurance, Inc., 10451 Gulf Blvd., Treasure Island, FL 33706, (813) 367-6900 | Managing General Agency | Liability; Umbrella; Excess; Property; Crime; Boiler; Pollution | $1 Million; Not Specified; $4 Million; $2 Million; Not Specified; Not Specified; Not Specified | Various (all lines) | Various |
| Continental Excess & Select Sports Department, 5690 DTC Blvd., Ste 500, Englewood, CO 80111, (303) 390-7275 | Carrier | Liability; Umbrella; Excess. Property, Crime, Boiler provided through other divisions of Continental. | $1 Million; $9 Million; Not Specified | Continental; Continental Markets provided by Brokers; Auto, Buses & | A- XIV; A- XIV |
| General Eastern Ski Insurance, RR #3 Airport Road, P.O. Box 306, Montpelier, VT 05602, (802) 229-5042 | Carrier (Risk Retention Group) | Liability | $10 Million | General Eastern Insurance Co. | None |
| K & K Insurance Group Inc., 1712 Magnavox Way, P.O. Box 2338, Ft. Wayne, IN 46801, (219) 455-3000 | Managing General Agency | Liability; Auto, Buses; Umbrella; Excess; Property | $1 Million; $1 Million; $25 Million; $25 Million; $50 Million | Transamerica ALL LINES | A XV as of 6/15/93 |
| Pettit-Morry Co., 520 Pike Street, 20th Floor, Seattle, WA 98101, (206) 447-0500 | Managing Broker responsible for all services of the Arlberg Program. | Liability; Umbrella; Property; Crime; Auto, Buses; Boiler; Workers Comp. (certain states) | $7 Million; $40 Million; $10 Million; $500,000.; As needed; See Property | Genesis Ins. Co.; Various; Genesis Ins. Co.; Genesis Ins. Co.; Fireman’s Fund; Genesis Ins. Co.; Not Specified | A++ VII; A++ VII; A++ VII; A XIV; A++ XIV |
| Willis Corroon Corporation of N.H., 95 South Main Street, P.O. Box 5003, Rochester, NH 03867, (603) 332-5800 | General Agent | Liability; Umbrella; Excess; Property; Auto, Buses; Crime; Boiler; Underground Tanks; Employment Practices Liability; Directors & Officers; Employee Benefits; Estate Planning | $500,000.; $10 Million; $75 Million; As Needed; See Excess; As Needed; As Neeeded; $1 Million; Not Specified; Not Specified; Not Specified | American Home; National Union; Various; American Home; Various; Various; Travelers; A.I.G.; A.I.G.; A.I.G.; Various; Various | A++ XV; A++ XV; A++ XV; A- XV; A++ XV; A++ XV; A++ XV |
| United Community Insurance Company, 33 Elk Street, P.O. Box 28, Albany, NY 12201, (518) 465-0457 | Carrier | Liability; Umbrella; Excess; Property; Crime; Auto; Buses; Boiler; Inland Marine; Directors & Officers | $5 Million; $25 Million; $25 Million; Not Specified; Not Specified; Not Specified; Not Specified; Not Specified; $5 Million | United Community Insurance Co. ALL LINES | A- VII |
Table II — Coverage / exclusions comparison (structure only)
Table II is a dense 7-supplier code grid (columns: ALLIED, CONTIN., GEN. EAST., K&K, PETTIT, W.C., UCIC) covering the liability policy form, participation (retention / deductible), coverages, and a long list of exclusions (basic form). Legend: X = excluded in basic form; E = may be available by endorsement; N.S. = not specified; YES / END’T / OCCUR / MOD. CLMS as printed.
Row labels (top to bottom): Liability Policy — Type of Form; General Aggregate. Participation — Retention (Expense & Indemnity; Indemnity Only); Deductible (Expense & Indemnity; Indemnity Only). Coverages — Bodily Inj./Prop. Dam.; Pers. & Adv. Injury; Blanket Contractual; Products/Compl. Oper.; Empl. Ben. Liab. (CL. MD.); Liquor Liability. Exclusions (Basic Form) — Punitive Damages; Medical Payments; Saddle Animals; Watercraft; Hang Gliding; Airports; Inverted Aerials; Tubing, Sledding, etc.; Skateboarding; Snowmobile Rental; Sale of Lifts/Major Components; Trampolines; Concerts (Greater than [X] Admissions / All Concerts); Hot Air Balloons; Helicopter Skiing; Bungee Cord Jumping; Parasailing; Parachuting.
