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Prime Insurance Company Continues to Provide Coverage in a Hardening Insurance Market

As the COVID-19 pandemic continues, insurers also continue to face a hardening market. Directors and Officers insurance and excess liability insurance are particularly hard-hit. Now more than ever, it is vital to ensure your clients have insurance. Prime Insurance Company is still offering coverage in this hardening market, so you can keep writing business and your clients can remain protected.

Understanding the Impact of a Hardening Market for Insurance

D&O insurance was already faced with a hardening market even before COVID-19 hit. Since 2018, the market has seen increased claims, high costs of defense, many class-action suits, and culturally significant moments like the #MeToo movement. The COVID-19 pandemic hit in the perfect storm of a market that was beginning to harden, bringing COVID-related losses and claims.

As an insurance producer, you know what a hardening market means, but this is a situation you may need to explain to your clients. To get insurance for a hardening market, your clients may need to pay higher rates. Some industries will face higher rates than others, including hospitality, retail, energy, automotive, entertainment, transportation, and travel, particularly air travel. In addition, excess liability rates generally are hardening faster than primary rates.

Your clients may also experience a tightening of terms and conditions to secure coverage, especially if they are newly seeking insurance. For renewing, factors like the size of the company, its history especially that of previous claims, and risk management will factor into rates and conditions. Either way, clients may see COVID-19 exclusions worked into terms and conditions.

At the same time, umbrella coverage and excess liability limits are being dropped by many carriers. Put together, this situation might make your clients feel like securing insurance in a hardening market is a hopeless endeavor. However, we’re here to help everyone navigate these challenging conditions to make the best of a difficult situation.

How We’re Handling a Hardening Market

We believe that relationship-building is the best way through any problem, a hardening insurance market included. By maintaining our relationships with insurance producers and industry experts, we help you maintain your client relationship. With empathy, understanding, and creativity, we can all weather the storm.

A large part of the way we do business revolves around anticipating and managing risk. It is best for everyone — us, you, and your clients — if risk is avoided and mitigated as much as possible. In a hardening market, this is even more key. Needless risks drive up rates and tangles terms and conditions.

Because we write insurance for specialty risks, we are well-versed in anticipating issues and stopping potential problems in their tracks. It is not just about COVID-19 — we routinely assist insurance producers and their clients in working through risks of all types. We are in a unique position, with a practiced, experienced risk management team that is not scrambling but putting their skill to work.

We are taking on this hardening market with our solutions-oriented approach. Again, this is not a new COVID-19 development, but rather something we have been doing all along. We stay up to date on all aspects of the market and know your clients’ needs to provide the resources, solutions, and tools that fit.

We stay in close communication with producers and clients, ensuring that any questions or concerns are met with information and answers. Nobody likes to be guessing about coverage or claims, especially during a hard market. You can depend on us to help you understand how the hard market will impact your clients.

Insurance and risk should be looked at with a holistic view, which is one of the ways we have written for specialty risk for years. Many factors go into the cost of risk and the cost of insurance, and we look at all of them. Now is the time to work with an insurance company that is structured to manage challenging conditions. Now is the time to work with Prime Insurance Company.

The hardening market is expected to carry into 2021, thanks to the pandemic and overall economic downturn. There will be pressure on coverage, and changes to the way insurance is written in light of the lessons learned through COVID-19. Now is the time to get in touch with us to understand how we can help you continue to write business and serve your clients.

Get started with an online application today. For more details, you can also call Prime Insurance Company at 800-257-5590 or email at info@primeis.com. Find us on social media, through Facebook, Twitter, YouTube, LinkedIn, and Instagram. And please read our blog if you would like more insight in the insurance industry and what we offer.


rick lindseyAuthored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company

Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Prime Insurance also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are Prime Insurance can help.

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