Wind/Hail Deductible Program Protects Small Businesses

PRODUCT: Wind and hail deductible buy-down

COMPANY: Program Brokerage Corporation, underwritten by Lloyd’s of London

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available on an open-brokerage basis.

FOCUS: According to the National Oceanic and Atmospheric Administration severe storm database, 5,412 major hail storms occurred in 2015. Hail is a major threat for property owners and businesses in coastal states and regions with high storm risks—which is why Program Brokerage Corporation launched a new wind and hail deductible buy-down insurance program.

“As population expands and businesses grow, property exposure in wind- and hail-exposed areas is increasing,” says Jonah Lipin, vice president, Program Brokerage Corporation. “Because of that, it is becoming more common for property carriers to add high wind and hail deductibles on their commercial lines policies. This program buys down those high deductibles into something that’s more manageable in the event of a storm.”

To help small and midsize businesses specifically, Program Brokerage Corporation requires no minimum premium—a common characteristic of other wind and hail deductible programs.

The wholesale broker also provides an easy, user-friendly quoting system and promotes a 24-hour turnaround for accounts in its control. While each state may have its own requirements and storm assessment processes, clients can choose from four buy-down options: percentage to percentage, percentage to dollar, dollar to dollar or dollar to percentage, depending on their needs.

Lipin explains that the new product enables independent agents to give small and midsize clients a value-added option for protecting their property, and provides them with a quick turnaround time for responding promptly to client needs.

“Small businesses may not be aware that they have a large wind and hail deductible on their policy, so they just accept it with a 2% or $100,000 deductible,” Lipin points out. “They should be aware that there is an additional product out there that can buy that down.”

UNDERWRITING: Location limits are available up to $25 million with an optional $100 million total insurable value for multiple locations, up to five locations. Accounts exceeding these limits can be considered as referrals to Lloyd’s. A supplemental application is required, as well as statement of values and loss runs documents.

MINIMUM PREMIUM: None.

TARGET: Because wind and hail can impact any physical property, the product is designed for commercial businesses in the real estate, industrial, hospitality, education and retail industries. Target businesses also include those related to docks, piers and wharves; greenhouses; construction; solar panels; and mobile homes.

COVERAGE TERRITORY: All U.S. states.

CONTACT: Jonah Lipin, vice president; Program Brokerage Corporation, 5 Bryant Park, New York City, 10018; 212-338-2983.

Ronimarie Acord is an IA contributor.