01/18/2007 Zurich Newsletter Z-News | Information for Zurich's small business agents Workers Comp news Placing your workers compensation with Zurich will help increase your revenue. We have made many changes to help your target this business. Among the changes involved in helping you sell more workers' comp are: " Making currently acceptable workers' comp classes available as mono-line. More for you to sell. " Introducing new classes like Restaurants and Light Auto Repair. Ultimately doubling the number of eligible classes available. " Upgrading our workers' comp system, resulting in: o improved screen flows o quicker price indications o offering you solutions to help reduce your expenses. HOT Precision Classes! " Advertising Agencies " Credit Unions " Barbers " Financial Planners " Medical Offices " Lawyers " Professional " Trade Associations " Public Libraries " Stockbrokers " Arts & Crafts Stores " Kennels " Monument Sales " Silk Screening " Newsstands " Dental Labs " Embroidery " Interior Decorators " Locksmiths " Photo Studios " Photo Finishing Labs " Laundry & Dry Cleaners " Mailing and Addressing Companies Builders Risk news Many times homeowners request upgrades during the construction process. These change orders affect the total value of the structure and these values are often not reported to their agent. If a claim occurs, the policy covers only the originally reported value. We all know the problems this could cause. Zurich's Builders Risk allows you to add a betterments endorsement (Contract Change Order Endorsement, HBIS 78) on residential/small commercial for one-shot form (40471) builders risk policies at the time the coverage is purchased or during the policy term. You can select 10, 20 or 30 percent additional coverage beyond the total estimated completed value. The rate is the same as the rate for the base policy. You simply select the endorsement as an optional coverage. Adding this endorsement will give you and your customer peace of mind because it provides coverage for an increase in completed values that occurred but went unreported. Contractors Equipment news Highlights: " Minimum premium is only $500. " Mobile equipment coverage is not just for contractors. We will write coverage for Manufacturers, Retailers, Wholesalers, Distributors or anyone who has equipment mobile in nature. " Easy to quote and issue! You print your policy forms and endorsement from your office printer. We appreciate your business! Z-News | Information for Zurich's small business agents 04/01/2007 SENECA INSURANCE The Property & Casualty insurance industry recently completed one of their most successful years, achieving $60 Billion in profits, a 93% Combined Ratio and sustaining only $8 Billion in catastrophe losses. As we all know, this is an industry which cannot tolerate success and we are therefore heading back into a soft market. In the current market it is critical that underwriters and producers focus on insurance to value when evaluating accounts. It is a poor but common practice to push down premium to compete on an account by undervaluing buildings, contents and business income exposures. This practice can result in significant co-insurance penalties after a loss. Building costs have soared in recent years with demand for basic construction commodities - steel, cement, lumber - pushed by construction overseas and reaction to catastrophes at home. Your Seneca underwriter will continue to evaluate all risks, new and renewal for adequate ITV as a fundamental element in our approach of individual risk underwriting. However it is the responsibility of the insured and his broker to provide adequate limits. LABOR UNIONS AND RELATED BUSINESS Our labor union initiative is available to producers who have accounts within this class of business. UTMARKET DIRECTION Seneca writes Commercial Package Policies, mono-line Property/Liability and umbrella policies over its own primary coverages. PACKAGE POLICIES The following classes were the most commonly written by Seneca as package policies for our policyholders. Commercial Real Estate: " Small/Medium size office buildings " Strip shopping malls " Property owned by labor unions " Mercantile with habitation (no frame, max.4 apts.) " Cooperatives and condominiums (no frame) " Warehouses " Three/Four family owner occupied (no frame) Seneca is also a market for: Retail Risks, Small Restaurants, Light Manufacturing and Wholesale Distributors. MONO-LINE PROPERTY POLICIES (Capacity to $25 Million) Seneca also writes property only policies for: " Office Buildings/ Lessor's Risks " Restaurants and diners " Contractor's buildings/offices " Schools and day care centers " Nursing homes and assisted living facilities " Medical care facilities " Property located at airports " Property associated with labor unions RECENT NEW BUSINESS WRITTEN Vacant Building (B'klyn) CMP $5,802 Wholesale Jewlery(LI CMP $5,944 Building LRO (PA) Mono-Line GL $20,095 Catering Facility(NJ) Mono-Line Property $10,829 Strip Mall (CT) CMP $10,683 Restaurant (NJ) Mono-LineProperty $5,541 Warehouse (NJ) CMP $5,499 Printer(NYC) CMP $9,599 Office Building(LI) CMP $20,996 Vacant Building (LI) CMP $11,038 Contractor's Build. (LI) CMP $7,234 Paper Mfg(NJ) CMP $8,106 Office Building (NYC) CMP $11,889 Marine Engineer Repair(NJ) Mono-Line Property $8.976 Vacant Building (LI) CMP $20,000 Vacant Building(Queens) Mono-Line Property $8,071 Italian Restaurant( LI) CMP $17,439 Airport Property(NY) CMP $6,445 Coop Apt. Building (NYC) Mono-Line GL $9,689 Condominium (NYC) CMP $12,233 Merc./Hab.(B'klyn) CMP $10,983 Shopping Mall(NJ) CMP $23,550 DOG BITE LITIGATION Over four million Americans are bitten by dogs each year. About 20% of those bitten seek medical attention, and about 12 die. It is no wonder that dog bite case litigation is very common. A dog's owner may be subject to "strict liability" for injuries inflicted by the dog if the victim can establish that the dog is "vicious" and the owner knew or should have known of the animal's propensity to bite. The courts generally accept evidence of prior history of attacks on other victims. On the other hand, if the dog's owner can prove that his dog had no prior record of attacking humans, lawsuits have been known to be dismissed. In a 2004 decision by the NYS Court of Appeals involving a Collie-Rottweiler mixed breed biting a 12 year old boy, the court found that the dog's owner could not be found liable, as there was no prior history of the dog's menacing behavior. In another recent NYS Appelate Division case involving a Pit Bull, the Court ruled that the testimony showed that the dog did not display any act of aggression prior to biting a 6 year old, and never barked, growled, bare his teeth, snap at , jump on or chase any person. The plaintiff failed to show proof of the dog's viciousness and the case was dismissed. Finally, in a case involving a "cockapoo" (part spaniel, part poodle), testimony did reveal that the dog's owners were aware of the animal's "vicious propensities" and failed to take appropriate precautions. The dog had a history of attacking three other people. Since this history suggested "grossly negligent and reckless" conduct and disregard of the 9 year old plaintiff's safety, the NY County Supreme Court ruled against the defendant and permitted the plaintiff to pursue a punitive damage claim against the dog's owner. Therefore it is important for brokers to educate their clients about the consequences of keeping a dog on their commercial premises, and to provide this information to their insurance carrier.