Hartford Financial Services Group issued a press release on April 10, 2007 that it contracting with Berkshire Hathaway to offer "expanded" surplus lines insurance policies providing certain commercial property insurance coverage. The types of property to be considered for this type of insurance coverage, according to the announcement, "may include" remotely located manufacturing plants, apartment buildings, and commercial properties in general which are located in areas of the U.S. which are hit hard by Catastrophes. Here is how some of the announced features may work.
First State of The Hartford will issue what it calls "quota share subscription, or 'combination' basis" surplus lines insurance policies together with several Berkshire Hathaway insurance companies. The Hartford companies and the Berkshire Hathaway companies involved in each policy will assume a percentage of the responsibility to pay, but this announced responsibility will be separate and individual, not joint. The Berkshire Hathaway insurance companies announced by The Hartford include: National Fire & Marine, National Indemnity, and National Indemnity Company of the South.
First State, the insurance company associated with The Hartford, will manage all claims under this arrangement. It takes a bit of reading between the lines, but policies falling under this announced agreement are described as part of the primary surplus lines market.
Here is a link to the press release: The Hartford April 10, 2007 Press Release: "The Hartford's First State Management Group and The Berkshire Hathaway Group Team Up in the Surplus Lines Insurance Market".
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