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Main Street America Moves with BOP

Main Street America has obtained state regulatory authorizations for Main Line BOP in two more states: Oregon and South Dakota. The carrier is also mapping plans to increase national market share in workers comp.
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PRODUCT: Main Line BOP

COMPANY: The Main Street America Group/NGM (admitted)

BEST RATING: A

AVAILABILITY: Works only with independent agents.

FOCUS: Main Street America has obtained state regulatory authorizations for Main Line BOP in two more states: Oregon and South Dakota. The carrier is also mapping plans to increase national market share in workers comp. The insurer “is looking at other states in terms of possible expansion” for Main Line BOP, the company’s underwriting staple, points out Dan Gaynor, vice president of commercial lines. In addition, the carrier has doubled its pricing tiers to 10. Main Street America applies pricing levels that are more tailored to individual risk characteristics and “could result in lower pricing for certain Main Line BOP accounts,” Gaynor explains. The company hopes its enhanced pricing tiers could help grow its $310 million in BOP premiums. The carrier is also considering various possible workers comp enhancements such as “more competitive pricing mechanisms,” says Gaynor. Main Street America typically offers workers comp in conjunction with its BOP. For workers comp, the insurer provides guaranteed rate programs. The company is also selectively adding to its network of nearly 3,000 appointed independent agents. The carrier will consider producers whose individual submissions or books of business “mesh with our company’s underwriting appetite,” notes Gaynor.

UNDERWRITING: The basic Main Line BOP includes general liability; employment practices liability; property and inland marine, including equipment breakdown and business interruption; and identity theft protection (with as much as $15,000 in sub-limits for credit monitoring and other such services). Professional liability is also built in to certain BOPs such as E&O for printers, beauticians, funeral directors and a few of the other 500 Main Street America BOP classes. As rule of thumb, policyholders pay extra for professional liability coverage as well as for workers comp, auto, umbrella up to $5 million in limits and liquor liability. BOP liability limits can reach $2 million per occurrence and $6 million aggregate. Per-location property capacity generally does not surpass $10 million. Combined single limits for auto are $1 million. Minimum deductibles run $500. Defense costs are usually outside of policy limits. Punitive damages may be covered where allowed by state law. Various Main Street America carriers supply paper, including NGM, Main Street America Assurance, Grain Dealers Mutual and Austin Mutual.

MINIMUM PREMIUM: Varies by state.

TARGET: BOP underwriters favor small risks with less than 50 employees, including apartment building owners; condominium associations; artisan contractors; car repair services; small manufacturers; accountants, lawyers and other providers of professional services; family-style and fast food restaurants; mom-and-pop-owned clothing stores or gift shops; barber and beauty shops, printers and other service providers; and wholesalers of appliances, home furnishings and beauty shop suppliers.

COVERAGE TERRITORY: All states except AK, AL, AR, CA, CO, HI, IA, IL, KS, KY, LA, MO, ND, NE, NJ, NM, OH, TX, WY and WV.

CONTACT: Chris Cox, director of -distribution management, 904-380-7215 or 800-207-0446; Main Street America Group

Ron Lent is an IA contributor.