Swett & Crawford Develops Specialty Stucco Insurance Strategy

Swett & Crawford rolled out a new approach to serving the insurance needs of exterior insulation finishing system (EIFS) applicators nationwide.

Under the company’s new Specialty Stucco Insurance Strategy (SSIS), Swett & Crawford will recognize selected independent agencies dedicated to serving the needs of the EIFS industry. SSIS started in conjunction with Huckaby & Associates of Columbia, S.C., an agency with over a decade of experience providing insurance for this difficult class.

Designed as an alternative to the carrier or association program construct, SSIS will use the experience and resources of Swett & Crawford to make sure the applicator is getting the best result from the marketplace, while maintaining local/regional retail insurance representation.

“The completed operations issues related to EIFS are largely historical,” said Michael Lassig, vice president of Swett & Crawford in Atlanta, who will spearhead the effort. “Yet these exposures still present issues and risk placement remains challenging. Swett & Crawford has extensive experience with the class and identified a need to build specialization at the retail level. There is no substitute for regular and active engagement with underwriters on the EIFS issue. In fact, our limited retail access strategy was pivotal in bringing new markets into the market to write the class and the development of exclusive products. Underwriters want to know the retailer is targeting quality risks.”

Market conditions for EIFS coverage are favorable at present, but an overall tightening in the commercial marketplace will adversely affect underwriting rates and coverage availability, Lassig explained.

“SSIS is inherently nimble enough to take advantage of soft market conditions and deal with the challenge of a tighter market,” Lassig said.

In addition to open market access, Swett & Crawford has developed exclusive products to be offered through members of the Specialty Stucco Insurance Strategy. As a wholesaler, Swett & Crawford will also be responsible for managing and growing the number of SSIS brokers with the involvement of those in the EIFS industry.

Source: Swett & Crawford,
www.swett.com