February 2018

Did you know that MSAA has an awesome market for your large construction accounts? Travelers is open for business not only on the small artisan contractors but also on the large construction risks.

I recently sat down with Bill Anderson, Account Executive-Officer for Construction from Travelers’ Charleston office. During our conversation Bill laid out the submission guidelines, construction specialization and appetite, specialty coverages available, and some of the types of large contractors that Travelers had recently written, including General, Utility, Electrical, Plumbing/HVAC and Bridge/Heavy Highway contractors.

Many agents are intimidated by large accounts and I admit that they can be a little complicated. But they also can be very rewarding, both from the high compensation and the chance to round the account further by writing any sub-contractors they may use. As for complication, MSAA members have an advantage: you have the resource of MSAA staff to help you through, even to the point of having someone go with you to visit the account. 

The submission guidelines are fairly simple.  They include a minimum of $750,000 GL payroll (on trade contractors under $750K submit to Select), 5-year updated company generated loss runs, copies of any Executed Subcontract agreements, a current financial statement, a list of any work in progress, and, of course, a completed Acord application.  

The specialization and appetite are broad and offer total package pricing. They are very aggressive on the Worker’s Compensation line so long as it is part of the package. The also have great risk control: onsite, online, and on demand. They also have dedicated GL claim professionals to help your clients develop resolution strategies to best manage costs. SIC codes include 1500, 1600, and 1700. They do not write roofers or residential contractors. Among the specialty coverages offered are Construction Surety, Professional Liability, Environmental Liability, and Cyber Risk. Don’t forget to add EPLI!

In other news, MSAA continues to have 2017 Profit Sharing, Growth Bonuses, PMSF, and other contingency checks roll in, making 2017 our best year yet! Make plans now to attend the Show Me The Money Meeting, Thursday April 12th, to get your share of the treasure!

On a separate note, please remember to save the date:

MSAA Annual Conference- Wednesday, August 22nd 

Did you know that MSAA has an excellent market for your local non-profit organizations that pays 15% commission? Chuck Smith, Sales Director for Guide One, was in our office going over the opportunities we at MSAA have with them. In addition to their super inclusive church policies, Guide One has a comprehensive program for non-profit entities.

Why solicit non-profits? Several reasons come to mind. First, local non-profits are, by definition, based in your community. They are a good place to get to know leaders within your community. The people associated with non-profits are usually committed to their group and are more likely to do business with you on other things if you are also helping their “baby”. By insuring your local non-profit organization, you as an agent are demonstrating your commitment and involvement within your local area.

Second, non-profits are a class of business that many agents ignore, many times because they perceive them to be tough to write or because they do not have a market that likes to write them. (Most carriers do not write them or do so on a limited basis.) But this works in the agent’s favor as once written, most of these accounts will stay on the books with high retention.

Third, writing non-profit business can be a substantial account, not only from the commissions on the account, which many times can have property and auto risks, as well as the GL and D and O exposures needed to be covered. Add to this the cross-sell opportunities and you can see that writing your local non-profit can be very lucrative.

I am not saying the non-profit business is easy to write, but it typically has a specialty application which can be filled out with the insureds. This alleviates some of the information gathering process. Also, you, as a member of MSAA, have a resource in Cindy and Jeff to help you with the application process. If you would like further information on how to start, please contact Cindy or Jeff. Look out for a separate email coming soon with all the classes of non-profits that Guide One likes to write.

On a separate note, please remember to save the dates:

Show Me the Money Meeting – Thursday, APRIL 12th

MSAA Annual Conference- Wednesday, August 22nd