Commercial lines player CNA rolls out a new product to serve various types of mid-sized businesses, enabling underwriters to offer broader protection at a better rate than previously available for commercial property.
PRODUCT: CNA Paramount
COMPANY: CNA/Continental Casualty (admitted)
BEST RATING: A
AVAILABILITY: CNA sells coverage primarily through its network of about 3,000 appointed independent agents, but also does business on a selected brokerage basis. For a possible company appointment or to file a policy submission, contact the nearest branch office.
FOCUS: Commercial lines player CNA rolls out CNA Paramount to serve various types of mid-sized businesses, obtaining rate and form approvals in 49 states with application pending in Hawaii. CNA Paramount enables underwriters to offer broader protection at a better rate than previously available for commercial property. CNA previously used a modified ISO form to cover a wide range of risks. Long recognized as a casualty market, CNA considers its new offering as one that “competitively serves the commercial property market needs,” says Jim Segriff, vice president-property at CNA.
Segriff cites the new product’s built-in equipment breakdown, crime and some inland marine coverages that previously had to be attached or written separately. Other benefits include what Segriff calls a “basket” of 11 coverages that enables producers to tailor coverages to meet specific account needs under a single limit. Offered at no additional cost, the basket can include accounts receivable, valuable papers, electronic data and fine arts. Coverages previously available only as add-ons for an additional charge are now built in to the base form, including utility supply failure resulting in lost business income, money and securities, employee theft, research and development, property and unintentional E&O.
UNDERWRITING: With CNA Paramount, mid-sized businesses enjoy packaged coverage consisting of general liability and property. CNA Paramount combines basic property and crime coverages including business income, extra expense, inland marine and equipment breakdown. In-house property limits reach $200 million, with higher limits available on a case-by-case basis. Minimum property deductibles are typically $5,000. With general liability, CNA can use either occurrence or claims-made forms. Umbrella and excess coverage are available, with limits that usually reach $25 million.
MINIMUM PREMIUM: Varies by risk.
TARGET: Manufacturing, technology, health care, construction and other middle-market businesses with annual revenues typically in excess of $10 million.
CONTACT: Jim Segriff, vice president-property, 312-822-2329; Bob Wenning, underwriting director, 312-822-4235; 333 South Wabash, Chicago, IL 60604.
Ron Lent is an IA contributor.
