Ark Agency, looking for new equine business, rolls out the welcome mat for new underwriting opportunities in its specialty. The program administrator “is open to” individual accounts and it “selectively” considers book rollovers.
PRODUCT: Equine insurance program.
COMPANY: Tudor (nonadmitted)/Stratford (admitted)
BEST RATING: A+
AVAILABILITY: Exclusive equine program administrator Ark Agency underwrites and issues policies for Western World Insurance Group unit Westco Programs.
FOCUS: Ark Agency, looking for new equine business, rolls out the welcome mat for new underwriting opportunities in its specialty. The program administrator “is open to” individual accounts and it “selectively” considers book rollovers, says Ark Agency Senior Underwriter Kim Ellis-McKigney. As coverage attractions, Ellis McKigney singles out several add-ons to the company’s core product, equine general liability. In that context, she lists follow-form umbrella, sexual abuse and molestation coverage and first-party bodily injury protection for volunteers of nonprofit organizations. Such endorsements can help producers address evolving coverage needs of their equine insurance accounts. Equine underwriters provide umbrella through Merchants National and various other surplus lines markets that are rated at least A. With Tudor supplying the underlying general liability, underwriters can assemble umbrella limits of up to $5 million. Something else about Tudor to consider: That nonadmitted market teams up with Ark Agency to present sexual abuse and molestation add-ons to the carrier’s general liability policies serving youth equine summer camps, riding lessons and equine-assisted therapy programs.
Sexual abuse and molestation per-occurrence and aggregate sublimits range from $25,000/$50,000 to $100,000/$300,000. Chubb delivers the paper for Ark Agency’s first-party bodily injury protection for volunteers of nonprofit organizations for equine-related incidents. Ark Agency markets the BI offering as a complement to Tudor general liability policies for equine-related exposures, explains Ellis-McKigney. She also touts the company’s website for producers where agents and brokers can download policy applications and eyeball other product and service information by going on to arkagency.com. McKigney mentions two other coverages for producer consideration, with one being Western World-supported inland marine and the other, underwritten by Great American, being the farm and ranch package. Inland marine insures various items including tack and equipment, carriages and farrier equipment (horse shoers/blacksmiths), with limits determined by value of the insured equipment. As for the farm and ranch package, Ellis-McKigney stresses the significance of underwriting flexibility that producers get with having access to admitted market Great American. Ark and its producers can offer farm and ranch packages to specialized classes of business that standard markets usually shun with cases in point being guided trail rides, horse-drawn vehicle ride operations and pony rides.
UNDERWRITING: Ark Agency’s main package program is designed for members of the Horsemen of North America Safety Control Risk Purchasing Group and the North American Horsemen’s Association. General liability limits range from $300,000 per occurrence and $600,000 aggregate to $1 million/$2 million. Packages include bodily injury/property damage, products liability and completed operations, personal and advertising injury, fire damage (maximum limits, $50,000) and a flat $1,000 in medical payments. There is an extra charge for equine care, custody and control (with maximum CC&C limits of $100,000/$500,000); equine professional liability (up to $1 million per incident); hired and nonowned auto (with limits stretching from $300,000 to $1 million); and employee benefits liability (of as much as $1 million in limits). There are no deductibles. Occurrence forms are used. Tudor paper is used in all states except California. Stratford provides paper in California. Equine underwriters prefer doing surplus lines business because of changing coverage needs of insureds and fluctuating market conditions stemming from exposure and policy pricing considerations.
MINIMUM PREMIUM: $475 for benevolent horse associations and $2,500 for horse rental operations, but the amount can be more, depending on individual risk characteristics. Underwriters charge a minimum of $150 for sexual abuse and molestation coverage. Umbrella minimum premiums vary by risk.
TARGET: Virtually any type of commercial equine business operation as well as horse owners, and benevolent horsemen’s associations. There are various types of uncommon equine classes that the group can insure such as horse-drawn vehicle rides; horse rental guides and outfitters; pony ride operators; tractor-drawn hay rides; horse rescue organizations; equine-assisted growth and development services; therapeutic services for horses and riders; and miscellaneous professional liability for trainers, riding instructors and therapeutic service providers.
COVERAGE TERRITORY: All states.
CONTACT: Kim Ellis-McKigney, senior underwriter, Ark Agency, Box 223, 310 Washburn Ave., Paynesville, MN 56362-0223, 800-328-8894 or 320-243-7250, fax: 320-243-7224; kim@arkagency.com; arkagency.com.
Ron Lent is an IA contributor.
