Wednesday, June 28, 2017

Something Different

Early in my career, before I decided to focus solely on the life/health side of this business, I got my Property/Casualty license and sold a few home and auto policies, and one batting cage plan.


Well, one day a call came in from a person who was planning on opening a batting cage business, and needed help with the liability. Since I was still pretty much a newbie who didn't know any better, I said "sure!"

Then I went looking for a carrier.

Turned out that (at least in the mid-80's) batting cages are a big problem from a liability standpoint, and none of our carriers would even quote it. So I turned to what's called the "excess market," and was able to secure coverage through an arrangement with Lloyd's of London (really!). As I recall, it wasn't a particularly high dollar case, but it was certainly an eye-opener.

Since that time, I no longer dabble in that side of the business, and don't really have any need for a LLoyd's connection. But that doesn't mean that the famous firm doesn't have a place on this side of the business. This morning, FoIB Jeff M sent me a link to a very interesting article about how Lloyd's was able to help a successful investment firm arrange for $50 million of key man disability insurance. This type of plan pays the business if the executive becomes disabled. It isn't ubiquitous, but it's also not unheard of. The challenge is in the amount at risk: $50 million is a lot of coverage, and the firm's regular insurance folks had to turn to LLoyd's to fulfill the order.

Anyway, it's a very interesting case study that proves the old saying (which I made up years ago) that you can insure anyone for anything .... if money's not an object.
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