Many insurance account profiles focus on new business opportunities, but in this current market, it is important to concentrate on both new business AND renewals. In many cases, the same attention to detail and knowledge of the marketplace should be considered when working with a renewal-not all of them are automatic renewals or easy accounts to keep!

The account being reviewed this month is an agent representing a company who specializes in the process design, engineering, and supply of solvent recovery systems, scrubbers, and fans. The company also manages the design and engineering of synthetic resin manufacturing plants. This year at renewal, they were seeking a combined General Liability/Contractors Pollution Liability/Professional policy and a separate Follow-Form Excess policy, to renew on August 1st. The expiring receipts were $2.5M and the insured was projecting $3M for the upcoming fiscal year. However, they were also awarded a large job in Italy that was expected to generate an additional $15M in receipts (for a total of $18M).

Unfortunately, the large amount of foreign work did not fit the underwriting guidelines for the incumbent carrier. They were able to offer renewal terms based on the $3M in projected receipts for work that would be done in the United States, but would not be able to cover the $15M project in Italy and would have to add an exclusion to the policy for this job. After speaking with a few other markets, a carrier was found that could add a worldwide coverage endorsement and write a policy that included this job, based on $18M in projected receipts.

The insured bound coverage with the new carrier; since the project does not start for a few months, the carrier provided an additional premium, which is good for 60 days. When all details are finalized in the project contract, the insured will provide the official start date and the carrier will endorse both policies to increase the amount of projected receipts to include this project and charge the additional premium. The carrier also agreed to increase the Excess limits when the project begins to comply with the limit requirements for the job.

The premium breakdown is as follows: