SeaFire Insurance Services, a newly launched program administrator, says it plans to carve out a niche insuring car and powersports dealers and repair shops.
Preferred Concepts LLC, a national insurance program administrator, established SeaFire to specialize in providing retail agents with insurance products from the Chubb Group of Insurance Cos., says Dennis Kane, president of SeaFire.
"This business has been in a space that has been fairly misunderstood among a number of carriers," Kane says. "Carriers enter on price -- in our opinion, often unsustainable pricing, with broad and loose terms and conditions -- eventually the accident years catch up, and carriers make considerable changes to underwriting, consolidate or pull out, which is what is beginning to happen right now."
The division initially will specialize in franchise and independent automobile dealers, franchise powersports and RV dealers, as well as mechanical and collision repair facilities. Products include package property, garage, dealer open lot, umbrella, crime, errors and omissions, employment practices liability insurance and workers' compensation. The average dealer may pay $60,000 to $70,000 a year for the package policy, not including workers' comp, Kane says.
"We view this as a one-in-100-year event. Partnering with Chubb with its financial strength, reputation, and stability creates a significant opportunity for us to take advantage of market disruptions."
Additional brokerage services are offered through Mercator Risk Services, another division of Preferred and one of the nation's largest insurance wholesalers.
Posted by Holly Wagner
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