MyNewMarkets.com’s Top 10 Oddest Market Searches and Requests
A “hot” risk from an agent’s view is the one sitting on his or her desk demanding immediate attention. Sometimes those hot prospects aren’t business owner policy or even standard-carrier-eligible; in fact they can be pretty darn strange.
MyNewMarkets.com, Insurance Journal‘s Web site designed to bring agents and brokers/wholesalers together, sees its share of odd risk types and requests. A review of the market request forum at any given time will produce some very “unique” risks. Remember, unique is code for bizarre, weird or just unbelievable. But no matter how unique the risk, there is usually a market willing to supply the needed protection.
Insurance Journal‘s editorial staff reviewed the forum posts for the past several months and selected the 10 most unusual market requests/searches applying highly scientific methodology — if it made us shake our collective head, it made the list. From 10 to one, here are the strangest market requests from the past few months:
- Timberland
- Halfway House Operation
- Air Traffic Control School
- Tourist Trolley Operator
- Snow Machine Rentals
- Dating Service Operation
- Sand Rail (Dune Buggy) Operation
- Tailgate Party Bus Operation
- Circus Arts Instructor Liability
- Exotic Snake and Reptile Breeding Operation
Stump the Market
In an attempt to stump the market, the list above was sent to several brokers across the country. The insight provided by the respondents was enlightening, and the coverage availability for even the strangest risk was intriguing.
Zach Mather, a broker in CRC’s Alabama office, said, “We can always find a market.” This seems to be true. The combined panel successfully provided markets for nine of the risks presented, although no single broker/wholesaler claimed to be able to find coverage for all 10. The sand rail (dune buggy) operation was the only market none of the five respondents said they could or would place.
Beyond a simple “yes, we will write the coverage,” or “no, not something we want;” each of the brokers provided more detailed information regarding markets and underwriting guidelines for a few of the listed risks. For example, Risk Placement Services Inc.’s Vice President of Property Bob Hecht stated that both ACE and Axis have a lumber industry-related risk specialist, making them good markets for the strangest risk number 10 — timberland.
Questions about coverage availability for halfway house operations (#9), air traffic control schools (#8) and dating service operations (#5) produced valuable underwriting information in addition to market-related data. Halfway houses were broken into two categories prior to the discussion of coverage availability; the discussion of air traffic control schools focused on the professional liability exposures; and the unusual sexual assault exposure faced by dating services were discussed.
Placement for halfway houses depends on the type of operation, according to Ken Kukral, president and CEO of International Excess Companies in Richmond Heights., Ohio. Kukral stated, “General Star and HCC Insurance Co. have a detention facility program that could do early release halfway houses. If it is a drug and alcohol halfway house or a homeless shelter/halfway house, we could go to Evanston Insurance Co, Lloyd’s or Red Mountain Insurance Co.”
Joshua J. Parrish of Arrowhead Wholesale Insurance Services’ executive and professional risk division in San Diego, said he can provide professional liability for a halfway house operation providing substance abuse recovery, but not for a convict early release house. “I would write a halfway house with Mid-Continent GA, a wholesale servicing (no retailer applications) MGA that writes for ProNational/ ProAssurance.”
Kukral and Parrish also zeroed in on the professional liability markets that would and could entertain an air traffic control school. Parrish said, “If they’re looking for educators’ liability, my favorite market for that is United National.” Kukral reported that he would approach Aviation Insurance Managers and also one of Lloyds’ errors and omissions programs.
Dating service operations present a unique professional liability challenge, Parrish said, noting, “I’ve seen several dating services in the past five years or so, and never found one that anyone was willing to cover due to the possibility of sexual assault exposure and lack of background screening.”
“For the most part we have a market; it is just a matter of if it is large enough to meet the minimum premium threshold,” stated Walt Sams, a marketing representative with Appalachian Underwriters Inc. His point is well-taken; because of the unusual nature of those and other like risks, underwriters generally expect a minimum premium to take on such unusual risks.
Premium may not be the only minimum required by the underwriter. Sams reported that in order for a tailgate operation (#3) to gain coverage, his markets require the insured to have a minimum of three units in operation.
Snake and Reptiles
But what of the No. 1 strangest risk; who will write an exotic snake and reptile breeding operation? Kukral led Insurance Journal to Lester Kalmanson Agency Inc.
A review of this specialty agency’s Web site is a walk through weird — it says so on the site. The home page contains pictures of alligators, zebras and a rhinoceros — what better place to find coverage for snake and reptile breeding.
The old adage, “One man’s trash is another man’s treasure,” can be rewritten for use in the insurance world too.
“One agent’s weird is another agent’s livelihood.” Even the bizarre have a home — somewhere.
Topics Agencies Professional Liability
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