A Look at Specialty Insurance and Who Needs It

A Look at Specialty Insurance and Who Needs It

The average American may understand the most basic insurance policies; homeowners, auto, general liability coverage for businesses, etc. However what many don’t realize is that sometimes coverage needs go beyond what a standard market is able to provide. Many of the MGA’s we partner with at K2 offer the coverages needed for these specialized clients through specialty insurance policies. So, what is specialty insurance?

In the simplest terms, specialty insurance is insurance that can be obtained for items or events that are considered unique or special circumstances. The items that would fall in these categories are rarely covered by standard insurance policies. This could be anything from powersports vehicles to educational liability, and even specialty homeowners insurance for houses with aging roofs.

A common misconception about specialty insurance is that it is unaffordable. However if consumers consider the amount of financial loss that could occur should they need to use their policy, it’s typically a great value versus the alternative. Consumers should always do their due diligence to find finically sounds specialty insurance carriers.

This includes reading the policies and understanding any provisions and/or exceptions. An effective agent will also take a close look at any other existing policies the consumer has, in order to ensure they aren’t getting redundant coverage, nor will they have any coverage gaps.

At K2 Insurance Services, LLC, we are dedicated to creating a leading underwriting and distribution franchise both in the standard and specialty program insurance markets. K2 was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and partners, please contact us today at (855) 976-8113 or visit K2INS.COM.

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The Basics of Municipality Insurance

logo-AegisLogoRisk and loss exposures are nothing new for the public sector; city officials face liability issues every day. These officials are tasked with not only managing debt and fiscal policy, but keeping their residents physically safe, providing a sufficient public investment in education, and addressing terrorism and border control issues. These cities or townships should obtain the right Municipality Insurance Program, but in addition it’s important for them to understand the details and intricacies of such a policy.

In order to truly understand the protection that municipality insurance affords, city officials must realize the municipal laws that they are in charge of; this includes property liability, zoning laws, crime insurance risks, law enforcement liability, cyber risks, educators’ legal liability, and more. The following are just a few of the insurance policies included in a robust municipality insurance program.

General Liability

This coverage protects a municipality against bodily injury and property damage claims arising from all locations and operations within the municipal entity. These types of injuries can occur due to improperly maintained roads and sidewalks, construction activities, or even natural disasters where due diligence has not been taken.

Crime Insurance

Municipalities must be engaged in crime prevention. Part of this is insuring against potential losses. Another important aspect of this is ensuring that businesses are properly screened and background checks are performed for city employers as well as employees, in addition to preventing tax fraud and evasion of social security contributions.

Employment Practices

In general, this coverage provides municipalities protection against claims from employees including alleged discrimination, wrongful termination, harassment, retaliation, unfair discipline, wrongful hiring, supervision, demotion, failure to promote, misrepresentation, defamation, libel, slander, disparagement or invasion of privacy, and breach of implied contract.

The above mentioned coverages are just a basic outline of what a comprehensive municipality insurance program provides. At Aegis General Insurance Agency, through one of our divisions, Allied Public Risk, our municipality insurance package also includes: property insurance, inland marine coverage, auto liability and physical damage coverage, cyber liability, educators’ legal liability, public officials’ liability, law enforcement liability, and umbrella liability. For more information about these products and services, please contact Aegis General today at 855.399.0966.

K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and partners, please contact us today at (855) 976-8113 or visit K2INS.COM.

 

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DIC Insurance: Types of Businesses with the Most Earthquake Risk

Vikco Insurance Services

Earlier this year, we discussed the importance of Difference in Conditions (DIC) Insurance coverage, a policy available through one of our MGA partners, Vikco Insurance Services, LLC This insurance coverage broadens an employer’s policy by providing them with additional limits of coverage for specific perils, especially earthquakes. This being said, how can employers decide if they are at a higher risk than other businesses? The following are various factors that will help determine a company’s risks of damage from an earthquake peril.

Building Design and Construction

The structural integrity of a building is dependent on many factors, what year the structure was built, the building codes used, the building shape and materials, structural frames, and their inter-connections. In order to determine specific risks, it’s important for employers to consult with a structural engineer. Major changes to a building’s structure are often unrealistic, however disastersafety.org provides a detailed list of possible non-structural retrofits that could be effective in maintaining the functionality of a building during earthquakes.

Data Management System

Earthquakes don’t just have the potential to damage the structure itself; they could do significant damage to information and information technology within a business. Experts recommend having everything digital regularly backed up and stored either through a cloud or Google drive service, or at an alternative location. IBHS recommends meeting with IT specialists and engineers in the company’s area to determine a solution that will best fit their needs.

Fire Protection Procedures

Fire following earthquakes could create, and has created, loss of life and even economic damage more severe than the damage from the earthquake itself. As such, it’s imperative to have fire safety equipment in place; a sprinkler system, a fire extinguisher, and smoke alarms in areas that don’t have a lot of foot traffic (storage closets, break-rooms, etc.). Another preventive measure employers should take to prevent fire or fire damage is properly securing gas and propane lines, as well as light fixtures.

The above mentioned methods are just a few safety tips that employers could follow to potentially reduce their earthquake damage risks. Employers should remember, as well, that no matter what they do to prevent damage, earthquakes are unpredictable. For this reason it’s imperative that they be well-equipped with the appropriate DIC policy.

To learn more about Vikco Insurance Services, LLC and the products they offer, please contact Brian Thomas Cindric at 925.678.2103.
K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and partners, please contact us today at (855) 976-8113 or visit K2INS.COM.

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MIA Offers Specialized Insurance Programs

midwestern logo

Our last post focused on the importance of developing a niche market, or rather a group of potential customers who share common traits. MGAs must stand out from their competitors, and by only offering general business lines or personal lines, they are not always able to do so. Midwestern Insurance Alliance (MIA) is an example of an MGA that offers products to a niche market; by being involved in underwriting and claims management of Workers’ Compensation Business for over 30 years.

Serving as a mandatory state-based social insurance program, Workers’ Compensation provides employees with financial protection against a disability or death that occurs while at work, or resulting from their work duties. Coverage is elective in some states, however most states require that business owners accept Workers’ Compensation Law provisions and provide the specified benefits.

Workers’ Compensation coverage includes four different types of benefits; medical, disability, survivor’s, and rehabilitation. Without these coverages, employees would be more likely to take legal action against their employers if they’ve been injured or made ill while on the job. Before Workers’ Compensation was an available insurance coverage, this system that made it difficult for employees to obtain compensation for such injuries, however exposed their employers to financially devastating financial penalties under tort law.

What should employers know about Workers’ Compensation coverage? The following is a brief overview of the factors, offered by the American Institute of CPAs, your clients should be aware of:

  • They are 100% responsible for providing the coverage to their employees.
  • Their state mandates how much coverage they will need to buy, which employee classifications must be covered, and what percentage of an employee’s salary the employer will pay if the employee misses work due to a job-related injury.
  • All employees, volunteers, and vendors must be covered; each state excludes certain employee classifications.
  • Select off-site accidents are covered by Workers’ Compensation policies.
  • Injured employees have the right to file a claim for their benefits.

The staff members at Midwestern Insurance Alliance are experts in providing Workers’ Compensation coverage, and view their relationship with policyholders as a partnership. To learn more, please contact MIA today.

K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and partners, please contact us today at (855) 976-8113 or visit K2INS.COM

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Targeted Insurance: Developing a Niche Market

Targeted Insurance Developing a Niche Market

Targeted Insurance: Developing a Niche Market

For insurance agents and brokers, developing a niche market is an ideal endeavor, as it allows them to combine their specialized knowledge with their unique skills and business contacts. What is a niche market, exactly? While some define “niche” as being “small,” this is not necessarily the case. Niche might mean that the market is simply in an area that doesn’t receive a lot of attention from the wider insurance industry, for a variety of reasons.

Basically, a niche market is a group of potential customers who share common characteristics. These characteristics make them particularly receptive to customized products or services that an insurance firm may offer. For example, an MGA may solely focus on the Workers’ Compensation market in a difficult state or region that requires localized expertise. Or, an agency might put their focus solely on outdoor recreation insurance in a specific geography.

Insurance experts tend to agree; if agents and brokers are just a “general” business lines or personal lines agency, they are behind the times. It’s more important now than ever, with emerging technologies and modernized business practices, for agencies and MGA’s distinguish themselves from their competitors.

K2 Insurance Services, based in San Diego, CA was developed to create innovative insurance solutions for niche markets.  They are leading the way with creative distribution partnership initiatives, within several underserved market segments.

Let’s say you know what niche marketing is, but you don’t see the benefits of such a targeted marketing practice. Specialty Insurance experts claim that targeted or niche marketing is actually associated with higher than average profit margins. By taking the time to identify a target market and launching an effective sales campaign, agents and brokers should reap the financial benefits associated with providing products for underserved markets.

With all this in mind, niche markets shouldn’t be too broad. For example, homeowners insurance is a very broad and seemingly saturated market; but perhaps this could be narrowed down to lower value coastal homeowners insurance.  Agencies that target to a broader audience are likely reaching people who can use their service, however agencies that develop a niche market are targeting prospects who are likely to buy that service from them versus their competitor.

K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and our partners, please contact us today at (855) 976-8113 or visit K2INS.com.

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