Chief Underwriting Officer Executive Vice President Keith McCarthy Executive Vice President Jessica Frankovich National Marketing Manager Pamela Corey Seneca is a wholly owned subsidiary of Crum & Forster and part of Fairfax Financial Holdings, Inc. family of companies, Seneca Insurance has the advantages that come with being part of a larger organization. AVP - Dallas John Griego VP - Inland Marine Timothy Morse Underwriter Megan McCoy Senior Underwriter Ron Suarez Senior Underwriter Michael Odmark
At Seneca, there’s always someone on the other end ready to listen and give you the focused, hands-on attention you need. Our investment in technological efficiency allows us to stay true to individual account underwriting. It is what sets us apart! - Underwriters with Experience™ Financial Strength rating by A.M. Best of A XIV “Excellent” Financial Strength rating by S&P “A” Part of Fairfax Financial Holdings with revenue in excess of $26.5 billion Flexible underwriting approach Dedicated and responsive underwriting team Customer service-based culture applied to everything we do Prompt new business quotes and early renewal indications
www.senecainsurance.com Specialty Package SPECIALTY PACKAGE 7KH6HQHFD&RPSDQLHVRIIHUDGPLWWHGDQGQRQDGPLWWHGVROXWLRQV IRUGLIƓFXOWWRSODFHULVNV$OOSROLFLHVDUH,62EDVHGZLWKOLPLWVXSWR SHUORFDWLRQ$GGLWLRQDOOLPLWVFDQEHSURYLGHGXSRQ UHYLHZ PREFERRED CLASSES • Commercial Real Estate • Mercantile • Mixed use • 2IƓFHEXLOGLQJV • 9DFDQFLHVIRUHFORVXUHVEDQNUXSWFLHV • Wholesalers • )UHLJKWIRUZDUGHUV • )RRGSURFHVVRUV • 'LVWULEXWRUV • /LJKW0DQXIDFWXULQJ Undesired Classes • &RQWUDFWRUōVOLDELOLW\ • 3URGXFWGULYHQOLDELOLW\ • Auto COVERAGE OPTIONS • &RPPHUFLDO3DFNDJH • 0RQROLQH3URSHUW\ • 8PEUHOOD 2IIHUHGLQVXSSRUWRIWKHSULPDU\XSWR SPECIALTIES Labor Unions 6HQHFDRIIHUVLQVXUDQFHIRUODERUXQLRQVDQGUHODWHGRSHUDWLRQVRQD ORFDOUHJLRQDODQGQDWLRQDOEDVLV6HQHFDSURYLGHVFRYHUDJHIRUVFKRROV funds, and real estate. All available Bankruptcy 7KH6HQHFD&RPSDQLHVKDYHEHHQOHDGLQJWKHLQVXUDQFHLQGXVWU\IRU \HDUVSURYLGLQJH[SHUWLVHLQQDWLRQZLGHLQVXUDQFHVROXWLRQVIRUDVVHWV XQGHUUHFHLYHUVKLSEDQNUXSWF\ Our Goals •(QVXUHDVVHWSURWHFWLRQZKLOHPHHWLQJLQVXUDQFHUHTXLUHPHQWV •(QVXUHSODFHPHQWZLWKIDVWDQGUHOLDEOHVHUYLFH •3URYLGHflH[LEOHLQVXUDQFHFRYHUDJHDQGOLPLWV •2SHUDWHZLWKLQIRUPDWLRQSURYLGHG Version 4.0 2022.09.29 CONTACT Dallas Branch John Griego Assistant Vice President T E MJULHJR#VHQHFDLQVXUDQFHFRP Machelle Allums 'LUHFWRU T E [email protected]
State of the Market: Property Insurance Continues to Rise The property insurance market was already under pressure before Hurricane Ian swept through the southwestern part of Florida, causing, by some estimates, up to $75 billion in insured losses. In addition to severe weather events over the last several years, inflation and supply-chain disruptions are pushing insured losses and premium rates higher. Let’s take a closer look at the issues impacting property insurance rates. Climate Risks: Severe Weather Events Climate risks continue to cut into property insurance underwriting profitability. Before Hurricane Ian’s late-September landfall, 2021 was the second-most expensive year on record for insurers, primarily due to destructive hurricanes and tornadoes, freezing weather, and flooding across the United States. Damage from natural disasters cost insurers $120 billion last year alone. Property reinsurers, particularly for catastrophe programs, as a result, have increased their rates. Ian is set to increase reinsurance pricing levels even further in 2023. Expectations are that Ian will become the second-costliest hurricane ever for the U.S. Property & Casualty industry. For example, so far, Swiss Re has reported a third-quarter net loss of nearly $500 million after absorbing $1.3 billion in preliminary claims from Hurricane Ian. Hurricane Ian is expected to cause approximately $1.58 billion in losses after retrocession, according to Munich Re.
Inflation and Supply Chain Challenges: The Perfect Storm Today’s inflationary environment and the high cost of goods, materials, and labor combined with ongoing supply-chain disruptions have increased the cost of claims of commercial and personal property losses. Claims remain open for longer as required components, materials, and labor become more expensive and difficult to obtain due to continued supply-chain challenges. The price hikes for construction materials and other goods and supplies are driving up insurer loss costs, pushing premiums higher. Reinsurers are pressuring insurers and their brokers to ensure property valuations reflect inflation rates in order for coverage for replacement cost/construction costs and rates to be aligned with today’s price of supplies and labor. In addition to getting the appropriate rate, accurate property valuations will help ensure that the cost to rebuild doesn’t exceed an insured’s coverage limits. What Does This Mean for the Property Insurance Market? Carriers are continuing to de-risk their portfolio by limiting exposure to high-risk perils and properties in coastal and wildfire-prone areas. Reinsurers are also restricting capacity due to concerns over inflation, the impact on loss costs, and the scarcity of retrocessional coverage. We recommend that clients go out to market early for upcoming January renewals. Underwriters are applying greater scrutiny during the renewal process, carefully reviewing loss histories and open claims. However, even clients with non-CAT exposures and good loss history in some cases need help getting capacity on their property insurance. Insurance to value (ITV) is at the forefront of discussion in the current market as banks push values to keep pace with inflation and rising costs. These figures should reflect the full value of a covered commercial property and its contents, as it is a key piece in the exposure analysis that enables carriers to allocate capacity, set terms and conditions, and price the risk appropriately. Customers need accurate valuation data to ensure they are properly insured. The partnership between the insured and the broker is critical to establishing accurate values. In order to address the needs of all parties, underwriters are often using margin clauses, scheduled limits, and coinsurance and offering different types of valuation. Underwriters are also being selective on policy terms and conditions and applying sublimits and high deductibles on water damage-related coverages. With the property insurance market continuing to harden, more business is entering the Excess & Surplus lines arena. Seneca Insurance Companies offer admitted and non-admitted ISO-based property policies for appointed E&S brokers, with an in-house capacity of up to $75 million. Full limits are available as well as primary and excess layers, with our overall capacity remaining stable during this market cycle. Our broad appetite includes habitational, bars and nightclubs, HOAs, hospitality, industrial, manufacturing, mercantile, nursing homes and senior living, office buildings, receiverships, residential, student housing, and vacant properties.
Capacity at $75 million Our portfolio has experienced tremendous growth in both larger individual buildings and larger schedules. Highlights • Capacity up to $75m per building for superior construction • No TIV restriction on schedule size; sweet spot is $150m - $300m • Single location and multiple location • Multi-state accounts Targets • Office buildings • Condominiums • Apartment buildings • Light commercial and industrial buildings Recent successes • Schedule of 61 apartment buildings in the Bronx - TIV $302m • Single location pasta manufacturing plant in North Dakota - TIV $45m • Schedule of individual residential condo units, rented to others in Manhattan - TIV $43m • Senior housing complex in New York - TIV $45m • Schedule of auto-part warehouses in North Carolina, South Carolina, and Nevada - TIV $93m
MINIMUM PREMIUM Flexible COVERAGES www.senecainsurance.com Contractor’s Equipment • Including cranes, street and road contractors, oil and gas contractors, equipment dealers • Coverages available include equipment leased/rented from and to others, rental expense reimbursement, boom overload, ZDWHUERUQHHTXLSPHQWHPSOR\HHWRROVŴRRGDQGHDUWKTXDNH Builder’s Risks, Renovations, Rehabs and Installation Floaters • New construction, rehabs and renovations • Stalled/delayed projects • Existing structure coverage • Structural renovations Auto Physical Damage • 7UXFNŴHHWVVDQLWDWLRQYHKLFOHVEXVHVSDUDWUDQVLWDPEXOHWWHV • Coverages include towing and storage, reporting form, WUDLOHULQWHUFKDQJHKLUHGQRQRZQHG • &DW3K\V'DPDYDLODEOHVLPLODUWRRSHQORWZLWKDKLJKGHGXFWLEOH Motor Truck Cargo • 1RFRPPRGLWLHVH[FOXGHGXSWRKD]PDWDFFHSWDEOH • Coverage: Debris removal, Earned freight charges, Pollution cleanup • Contingent cargo and reefer breakdown coverages are available And more… • Warehouseman’s Legal Liability • Bailees • Monoline Riggers Liability • Medical equipment Stationary and portable • )LQHDUWVƓQHDUWGHDOHUVDQGPXVHXPV • Towers and antennas • 0LVFSURSHUW\ŴRDWHUV • Green Technology Incl. photovoltaic systems • Air supported structures • EDP Target Classes CONTACT Inland Marine Seneca provides both an admitted and non-admitted market for most classes of Inland Marine business, including risks in the transportation, logistics, service, construction and communication industries, as well as other miscellaneous risks. We have dedicated and experienced Inland Marine underwriting professionals who KDYHWKHWHFKQLFDOH[SHUWLVHWRFUHDWHLQQRYDWLYHDQGŴH[LEOH solutions for your clients’ needs. You will get fast, reliable service. Property & Inland Marine coverages can be packaged on a single policy ¾ǠȂȏɋǚɲژuȏȵȽƷ ۶ژÝǠƩƷژ¥ȵƷȽǠưƷȄɋ זאוהِחגِבוח 3/4 - ɋȂȏȵȽƷۮȽƷȄƷƩƌǠȄȽɓȵƌȄƩƷِƩȏȂ eƷȽȽǠƩƌژFȵƌȄǵȏɫǠƩǚ ۶ژ-ɱƷƩɓɋǠɫƷژÝǠƩƷژ¥ȵƷȽǠưƷȄɋ הההِהחדِאב 3/4 - DZǑȵƌȄǵȏɫǠƩǚۮȽƷȄƷƩƌǠȄȽɓȵƌȄƩƷِƩȏȂ
What to Watch for in Builder’s Risk Insurance The construction landscape has transformed over the last couple of years, including for new builds and renovations. Here are things to consider when placing Builder’s Risk insurance for your clients. Requests for Policy Period Extensions We are seeing an industry boom in the commercial construction space as demand for new industrial facilities, structural renovations, commercial space conversions, rehabilitation work, cannabis build-outs, multi-family properties, and advanced-technology manufacturing spaces is soaring. At the same time, supply chain disruptions that began during the pandemic continue to plague the industry. While many contractors have been stocking up on materials (see below), high demand for new builds, conversions, and renovations, along with shipping delays, have resulted in insureds requesting that the policy period on a Builder’s Risk policy be extended. Typically, Builder’s Risk policies are issued for the originally anticipated length of the project, but if and when delays occur, insureds can find themselves struggling to extend the coverage to the new end date.
Seneca Insurance Company provides customized Builder’s Risk policies to address a client’s needs. We will review the specific details of each project to determine how we can best accommodate a client’s request for an extension. We also will consider mid-term projects when insureds are unable to obtain an extension from their current carrier. The Cost of Construction Is Higher In today’s inflationary environment and tight labor market characterized by higher wages, costs should be fixed as soon as the project price is determined (binding subcontractors, pre-ordering materials and storage, etc.) to ensure the client has adequate limits on the Builder’s Risk policy. If construction costs do increase during the project, Seneca Insurance is able to offer Excess coverage that sits on top of the policy limits insureds already have in place. Materials Located at a Temporary Storage Facility In order to have materials on hand and to keep prices reasonably steady, construction companies have been ordering materials such as lumber, doors, and windows in much greater quantities in advance. If they are utilizing additional temporary storage to keep these materials on hand, speak to clients about obtaining additional Property coverage. While Builder’s Risk extensions cover materials and supplies in a temporary off-site storage facility as well as during transportation to and from the storage facility to the on-site property, a standard extension only applies to the materials being used for the project. A Continued Focus on Loss Control Certain high-risk construction operations (street and road and large frame construction) will continue to incur higher insurance costs. Contractors with more difficult risk profiles, poor loss experience, or ineffective risk management protocols will continue to face a challenging market. Contractors should continually work on enhancing their loss control and risk management programs to minimize claims and improve their risk profiles. Seneca Insurance can provide you with Builder’s Risk solutions for your clients. We also offer policies to cover all phases of a project – from course of construction to vacant property to occupied – in addition to the broadest renovation appetite in the market.
Risk-Mitigation Strategies for the Contractors Equipment Market The global Construction Equipment and Heavy Equipment market, according to a report by SkyQuest Technology, is expected to grow from $185.12 billion in 2021 to $225.1 billion by 2028. Heavy equipment includes bulldozers, forklifts, backhoes, excavators, cranes, and pavers. The sector’s growth in the United States can be attributed in part to planned urban infrastructure projects due to the $1.2 trillion Infrastructure Investment & Jobs Act. Robust residential construction over the past few years and sustainable technological advances (e.g., the commercialization of battery electric, hybrid, hydrogen-powered fuel cells, and other alternative-fuel-powered equipment) also contributed to the increased sale of construction equipment and the industry’s overall growth. In addition, the demand for the development of autonomous construction equipment is increasing and is expected to transform the industry’s landscape in the future. Construction work is ideal for self-driving machines because the tasks are repetitive, physical, precise, and time-sensitive. Scan to read more!
Visit our website to learn more! This material is provided for information purposes only and is not intended to be a representation of coverage that may exist in any particular situation under a policy issued by one of the companies within Crum & Forster. All conditions of coverage, terms, and limitations are defined and provided for in the policy. The C&F logo, C&F and Crum & Forster are registered trademarks of United States Fire Insurance Company. Crum & Forster, which is part of Fairfax Financial Holdings Limited, comprises leading and well-established property and casualty business units. The insurance companies, rated A (Excellent) by A.M. Best Company, are: United States Fire Insurance Company, The North River Insurance Company, Crum and Forster Insurance Company, Crum & Forster Indemnity Company, Crum & Forster Specialty Insurance Company, Seneca Insurance Company, Inc., Seneca Specialty Insurance Company, First Mercury Insurance Company, and American Underwriters Insurance Company.