Located in the running capitol of the world, Eugene, Oregon, GIE has been part of every Fun Run/Walk held over the past 14 years. As a proud sponsor of this event, these Fun Run/Walks have helped contribute to our company’s identity and philosophy. We enjoy sponsoring an event that promotes health, physical fitness, camaraderie, and the great outdoors. Anyone can host a dinner or happy hour, but how many companies host an event that focuses on your well being? If you do business with us, run or walk in one of our events, Thank You! You have helped contribute to a better future for you and GIE.

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Employment related practices (EPL) claims are among the largest and most catastrophic claims facing public entities today. Verdicts can be virtually unlimited due to the fact that most claims can be filed as Federal, Section 1983 claims, effectively eliminating any state tort statutes. Due to the severe nature of these claims, Global Intermediaries is always searching for new and unique ways to manage them. We regularly interview and research the techniques of public entities around the U.S. in the hopes of finding a way to eventually eliminate (or at least greatly reduce) EPL claims altogether. On a recent business trip we may have uncovered a useful technique for all entities when it comes to handling EPL grievances before they reach the claim stage.

EPL related claims can be sleepers in the world of insurance. One day everything is running smoothly and the next you’re looking at possible losses in the millions! Along with their financial impact, EPL claims are very time intensive; multiple departments are involved, HR, attorneys… sooner or later the whole entity is involved in one way or another.

On a recent business trip I visited a public entity who utilizes a bipartisan Civil Service (or Joint Labor/Union) Board to review EPL grievances. It appeared that this neutral board has allowed the public entity to save both time and money in the management of their EPL related claims. If Civil Service Boards work for this public entity, why aren’t others using them? Could a neutral board, combined with a technique called “intent based focus” (forged out of the collective bargaining world) represent the next wave in loss control for the public entity world

I’ve just started my research, but I’ve uncovered a lot of the grievance process commonalities among public entities. Most public entities utilize a tested, but money and time consuming method:

• An employee contacts their attorney or union representative and has them file a complaint with the HR department.
• HR receives the complaint, reviews, and then contacts their attorney… From here, the battle is on.
• Some of the grievances end up in lawsuits, which add even more cost to the already laborious process.

In my interviews with public entities that use bipartisan boards, I’ve found that the grievance process is managed much differently.

• Employees are required to bring their grievance up in front of a board compiled of their peers and others from their employer.
• The board then looks at a broad view of the issue at hand, making sure that the employee’s full voice is heard and understood.
• This process can quell any wrongdoings by the entity, overturn bad employment decisions by managers, and it can dissolve any misunderstandings by the employee filing the grievance.
• Overall, the process serves as a neutral step that must be done before anything further takes place. It appears that most grievances can be quickly solved with this process, although some still end up in court.

Over the next month I’ll be continuing to research Civil Service (Joint Labor/Union) Boards to find some concrete answers and to discover their true power. I’ll also be including an in depth look on two related claims and how they were handled. One case involves a new Sheriff who fired most of the old senior staff, resulting in $10MM in lawsuits. The other situation involves a bus driver union that caused tensions for over two years before a bipartisan board was implemented.

Overall, it is my goal to help provide you with new information to help control costs and solve problems well before any insurance company is put on notice. If my theories and research pans out, a Civil Service Board might be one of those items!

Global Intermediaries just worked on a large county in the Northeast where the expiring carrier came back with a 33% increase due to loss activity. We eventually stimulated competition and brought the increase down to 17%, but it was still an increase. On the other hand, one of our recent Northwest accounts received an unsolicited quote from a newer market that didn’t even receive a submission!

The difference here is simple. Both public entities had different account profiles, specifically the loss ratios and the tort environments. It appears that the markets are gaining intelligence and cherry picking the “select”, loss free, accounts and going after them with gusto, whereas loss laden accounts are seeing increases. This new approach is a departure from our old thoughts of risk diversion and adverse selection, where markets applied the same rate to similar accounts, independent of loss ratios.

What does this mean for public entity insurance?

With the help of GIE, public entities and their brokers will need to determine if they fall into a “Select” program or a “loss laden” program. Select accounts will be largely loss free and will benefit from great coverage and a premium decrease. Loss laden accounts will have to work harder, with a more creative approach to the marketplace. No matter where your account stands, Global Intermediaries is here to help you and your agent plan the best marketing strategy; be it Select or Not So Select.

***One of the new items we’re working on is a stable rate product for Select accounts.  If you would be interested in such a product, please contact us and we’ll include your thoughts in our market approach.

In today’s volatile public entity insurance marketplace I find myself regularly answering this question. Everyone jumps to “stability”, and public entities believe stability means grabbing hold of your SIR and not letting go.

As insurance markets start to raise the self-insured retentions of large public entities, due to loss activity or the economy, many entities fight to keep their current SIR by sacrificing higher policy limits. At the same time, lawsuits are increasing in size and number in all coverage areas (View Settlements PDF). Many public entities are maintaining lower policy limits when the threat of high dollar lawsuits is actually increasing! Now here’s the kicker… Private equity firms are now financing these high dollar lawsuits in the hopes of receiving better investment returns. (Source Article) This information, recent inflation fears, and a possible turn in the insurance market make me wonder whether we should be fighting for the low SIR or a higher limit.

So What Can You Do?

First, determine the correct SIR for your account; it’s usually above the working (or frequency) layer. Positioning the SIR allows for the most cost effective transfer of risk, enabling you to keep premiums at a minimum while still achieving your goal of protection from market swings. SIR’s should be set to handle one large claim every 5 to 6 years.  If your current SIR is above or below that level, it may need to be reset. If you don’t know if your SIR is correctly positioned, call us, we analyze SIRs and loss histories for a living.

Second, determine what policy limits you might need. Many public entities in states with strong tort law buy lower limits as they feel comfortable with the tort protection. However, even in tort protected states, these entities are NOT protected from the Federal Claims found in Section 1983 and the claims associated with violating those laws. These claims are mostly EPLI and law enforcement related, so be sure to weigh your exposure in those areas. Keep in mind that tort statutes have been broken across the country. If your local tort statute is broken you’ll be vulnerable to all negligence based claims and that tort protection will no longer exist.

Odds are that your public entity can likely absorb an additional $500k to $1 million due to an increase in the SIR, but if your limits are too low can you handle another $10 million from a lawsuit gone bad? Imagine having to pay $5-$10 million in this economy because you didn’t take the time to consider the changing marketplace and the possibility of a large claim. Ultimately, the decision is up to you, but if you’re sacrificing limits for a lower SIR, then you may need to reconsider your choice!

“Placement Facility” is a term I hear all the time from brokerage firms these days. Some brokerages seem to think that wholesalers are only good for transacting business and correctly processing quotes, binders, and policies. What they’re missing is the expertise a niche wholesaler such as GIE provides; like the ability to help set retentions, identify problem areas, and then design solutions for those exposures. Our specialized focus allows us to design the perfect program for each public entity to solicit and present to the correct carrier. Add to that GIE’s constant drive for program creation and dedicated R & D and you’ll find that we’re more than just a “Placement Facility”. In fact, GIE would be one of the few players around if we could have patented all the coverage advances we’ve created or held captive all the companies we’ve introduced to the market. Instead, we released those into the marketplace to benefit public entities and their agents. This allows us to retain our independent status and true wholesale stance, proving our dedication to our agents and their accounts.

What gives Global Intermediaries this strong ability to push the public entity industry along is our robust history. We started as SIRPRO, an MGA for liability in 1993 and rapidly grew into a national powerhouse for self insured public entities. Over the hard market of 1999, we made a strategic decision to become a wholesaler, offering excess liability, excess workers compensation, med/mal, police professional, and property coverage for all companies to all agents. Since then, we’ve brought over 10 companies into the excess liability market and created many significant endorsements and coverage’s commonly used in this sector today.

So instead of using a “placement facility”, give GIE a call and allow us to help push your public entity programs forward!

• All entities would like coverage for the unlimited federal claims while using their immunity for the tort claims if it’s available.  Given this fact, GIE has designed a product to cover the unlimited federal claims and exclude the tort capped claims.  This product is often called a Tort Wrap, or “Federal, Out of State, and Contractual Coverage”.

• It’s simple, for a substantial discount of 30% or more, coverage for any tort capped claim is excluded via endorsement from a very broad public entity policy.  The coverage left is normally for federal, out of state auto, and contractual claims.  This is a very efficient method to provide coverage for just the areas that need the protection!

For a quote on this coverage, please contact our team at 1-541-344-5411

Dear Public Entity Agent,

A wholesaler like GIE knows the hard work it takes to gain the respect of your local public entities and the skills needed to develop the necessary political connections. But, what’s next? Now you need the solid marketing experience and the partnership of a seasoned public entity wholesaler to make sure you get the best terms and conditions the world has to offer. You need to round out your markets and add that extra large dose of marketing power and expertise. This is where you add GIE to your company’s marketing team. We field over 200 public entity submissions per year from around the country and can help you either find great coverage or confirm that you already have the best. You and your clients deserve to experience the security and expertise of GIE… The specialty public entity excess wholesaler. We offer excess liability, property, and workers’ compensation programs for your self-insured or pool accounts.

These are just some of the benefits you receive when you add GIE to your public entity team.

• Full market access – Both wholesale and retail markets.
• Complete marketing capabilities – We can be your whole marketing department or just part of it.
• Large volume with important public entity markets – Most companies recognize our expertise and sit with waiting ears.
• Comprehensive marketing reports – A detailed list and explanation of the marketing process.
• 100 point coverage checklist – Side by side comparison of the top two companies for your client.
• Extensive program creation knowledge – We can help design and tweak your program’s coverage.
• Nationwide view – No matter where you are in the U.S., we know your area.
• Large claims consultation – Our seasoned employees, with decades of claims experience, are waiting to answer your questions.

For a list of markets, document examples, or references, contact us today!

541-344-5411

In addition, A.M. Best has commented that the FSR of A- (Excellent) and ICR of “a-” of NY Marine’s affiliate, Southwest Marine And General Insurance Company (Southwest Marine) (Phoenix, AZ), and the debt rating of “bbb” on $100 million 6.5% senior unsecured bonds due March 2014 of NYMAGIC are all unchanged. The outlook for all ratings is stable. All companies are domiciled in New York, NY, unless otherwise specified.

Pursuant to a definitive agreement entered into with ProSight Specialty Insurance, NYMAGIC will be merged with PSI Merger Sub Inc., a wholly owned subsidiary of ProSight Specialty Insurance formed for purposes of the transaction. NYMAGIC will survive the merger as a wholly owned subsidiary of ProSight Specialty Insurance.

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The US insurance market for public transit is finally opening up and offering more good choices from A 15 US domiciled carriers, even for accounts with light rail! After 9/11, the market shrank substantially for all insured’s, including public transit authorities.  Due to catastrophe potential and high limit needs, the market place for these unique public entities has been slow to recover.  The long sustained profitability for insurance carriers and the resulting soft market we see today, coupled with onshore movement of the Bermuda and London based carriers has expanded US offerings in both the lead SIR options and the capacity.  With the additional options, there is competition in this segment and clients are seeing options with more coverage at lower prices! You and your public entity transit client have a choice! You can now access US domiciled or multiple carriers, instead of going overseas or being locked into one carrier for your liability coverage. The US markets are strong and ready to compete for this once difficult business.

Global Intermediaries has the specialized brokerage force to bring cutting edge insurance solutions and competition to the public transportation marketplace.

Give us a call today to discuss the possibilities for your public transit risk.

541-344-5411

Public Entities across the country are signing contracts that allow the federal government to use the empty beds in their jails. This program allows public entities to bring in extra revenue, but at the same time introduces new risk. In reponse, GIE has designed a program specifically for Section 287g contracts and the liability associated with these programs. The program is designed for entities that either want to segregate their claims for ICE, or would like to buy down their SIR for the ICE program.

Here are the program basics.

Coverage provided:

• A13 carrier
• Non – admitted policy
• Attachments down to $50k
• Limits up to $5mil
• GL for the jail portion used
• Police professional for the jailors
• Coverage for any law enforcement related auto accident
• Coverage for the nursing staff at the Jail

Items needed to quote:

• Police professional application
• Full loss runs for the jail for the last 6 years
• Number of inmates, jailors, autos and nurses specific to just the 287g program.

For more online resources visit the links below.

• Gov: ICE Fact Sheet
• Article: Secure Communities
• Article: Extra Revenue From ICE Program