Sierra Specialty Offers Insurance on the Range

PRODUCT: Agri-Services Program

COMPANY: Hiscox

BEST RATING: A (Excellent), Class XV

AVAILABILITY: Coverage is available through independent retail agents via Sierra Specialty.

FOCUS: Sierra Specialty has introduced its Agri-Services Program, a package of general liability, professional liability and pollution cleanup coverage designed for businesses serving the agricultural industry, which “have special needs for insurance,” says Mark Schroeder, executive director and owner of the California-based managing general agent that specializes in agriculture and farm and ranch insurance. “We operate in the heart of this industry.”

According to Schroeder, the new program expands on a product previously underwritten by an admitted insurer that recently exited the class of business. “We took the opportunity to enhance and finetune an already good program,” he says: Sierra Specialty expanded the services and classes it would insure, reduced its rates and added professional liability and pollution cleanup coverages. The company’s loss ratio for the previous product was “in the teens,” Schroeder says, but applied coverage only on occurrence basis, which “limited our ability to compete.” That’s why Sierra Specialty now offers coverage on claims-made or occurrence basis.

For claims handling, Sierra Specialty employs a third-party administrator with agriculture-specific experience of more than 20 years in the industry. “Agents won’t have to worry when a claim comes in if the adjuster has worked in agri-service before,” Schroeder says, noting the company seeks to work with any U.S. independent insurance agent who knows the agricultural services business.

In addition to the Agri-Services Program, Sierra Specialty also provides specialty programs on a non-admitted basis for many other farm and ranch exposures. Schroeder says the company seeks “the hard-to-place accounts that standard and admitted [agricultural] departments do not want to write. We merged some personal lines exposures of the farms and business exposures into a non-admitted product that gives us flexibility to underwrite and price those unique and otherwise unwanted exposures.”

UNDERWRITING: $500,000-$4 million limits are available. A $50,000 sublimit is available for pollution cleanup for chemicals both in transit and on site. Deductibles begin at $500. The program includes general liability and professional liability coverages for services rendered to third-party clients. Coverage applies on either an occurrence or claims-made basis.

Property, equipment, inland marine, pollution, homeowners and auto are available through the company’s farm and ranch program.

MINIMUM PREMIUM: $750.

TARGET: Sierra Specialty targets agricultural service businesses, ranging from small and startup firms to established firms with annual receipts up to $15 million. Eligible hazard classes include agricultural crop sprayers; advisers and farm managers; pest, weed and aquatic applicators and advisers; farm labor contractors; janitors, including window, carpet and chimney cleaners, but excluding high-rise window cleaners; landscape contractors; tree service providers; and farm machinery operators, including hay balers.

COVERAGE TERRITORY: The MGA writes in all Western states, but plans to roll out the program to the entire U.S.

CONTACT: Mark Schroeder, executive director and owner; Sierra Specialty Insurance Services Inc., 234 Clovis Ave., Clovis CA 93612; 559-256-6912.

Ronimarie Acord is an IA contributor.