Question From Moderator
- Hello, Group I am in search of the following.
One of my clients is seaching for a market that will offer liability
insurance to bounty hunters. The one in question uses firearms and
gross receipts are estimated at $ 100,000. Would appreciate any
Thanks for your time.
The Spy Shop
Po box 116
- There are few companies that will insure bounty hunters/private detective
The best bet is to be insured through Lloyds of London.
This individual needs to get in touch with a local broker who can then access
the company through an excess and surplus lines broker.
Premium is high for this coverage with high deductibles, however, it can be
negotiated for lower amounts based on experience, losses, and who the clients
Hope this helps.
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- Thanks for your help now i must ask for more help.
This is a excerpt from an email
Thank you. Actually the insured has already done this, and I am an
excess and surplus lines broker. Can any of your group refer me to a
Lloyds broker that either my agent or I can access? Perhaps they
could give me the name and location of one of the agents that
currently writes these policies. Our insured is in Pennsylvania.
--- In email@example.com, marievcole@a... wrote:
> There are few companies that will insure bounty hunters/private
> with firearms.
> The best bet is to be insured through Lloyds of London.
> This individual needs to get in touch with a local broker who can
> the company through an excess and surplus lines broker.
> Premium is high for this coverage with high deductibles, however,
it can be
> negotiated for lower amounts based on experience, losses, and who
> Hope this helps.
> [Non-text portions of this message have been removed]
- I hope this comes through as I needed to cut & paste.
Good luck with Brownyard Brothers, they are a wholesaler out of Brooklyn who
appear to have the Lloyds pen.
EXPERIENCE PAYS OFF FOR NICHE MARKETER
Brownyard Brothers builds its reputation insuring security guards, pest
control firms and hairdressers
By Phil Zinkewicz
Brendan Brownyard points out that because The Brownyard Group has been on the
scene for more than 50 years, it is well prepared to thrive in a hard market.
The last really hard market experienced by United States property/casualty
insurance companies was during the years 1984-85, more than 15 years ago. Since
those crisis years, the P-C industry has endured prolonged soft market
conditions, with insurance coverages in the overall available at bargain prices and
with very few policy restrictions. Yet even with the underpricing of insurance
products and services that has dominated the business of insurance for the
last decade and a half, insurers have been able to prosper because of a booming
economy and healthy stock market performance. "Cash flow underwriting" is the
phrase that is used to describe periods when insurers sacrifice underwriting
judgment for the sake of investment earnings.
But now the situation appears to be changing. The economy is no longer
booming, and the stock market is not performing well. In times such as these,
insurers begin to remember that they are, in fact, in the business of insurance; and
underwriting expertise takes on greater importance than investment yields.
But is the insurance industry currently able to practice sound underwriting?
The soft market brought with it many new players into the insurance business,
adding to the already strong competitive market. Those new players have never
really seen a hard insurance industry market. The question is whether these
new players will be able to survive in a market unknown to them.
It's a dicey situation. However, the current scenario might just bode well
for the seasoned professionals--those who have been in the business for a long
enough period of time to remember when there were hard times and who know how
to deal with them.
"Our niche markets are service industries. ... With all the exposures ...
[they] encounter, it is important that they be offered custom-designed policies
that fit their needs and that protect them against exposures not covered by
The Brownyard Group, for example, has been an insurance agency doing program
administration business since 1950. The agency was started up that year by
William H. Brownyard who died just a couple of years ago, but it remains a
growing concern now under the leadership of Bryan and Brendan Brownyard, both sons
of the founder. And, now the firm has moved into the third generation of
Brownyards. Bryan's son has joined the firm as has Brendan's daughter, who did her
apprenticeship in the London market, having worked for a prominent Lloyd's
broker. Therefore, it's clear that the Brownyard name is well known in the
"Our niche markets are service industries," says Bryan. "My father began the
agency by writing workers compensation for an industrial trade group. In the
early '60s, we moved into the security guard business and we wrote our first
major program in 1962. Fifteen years ago, we began writing pest control and
Under The Brownyard Group's security guard program, called "Brownguard," the
agency offers general liability, excess and/or umbrella coverages, employment
related practices liability, workers compensation, third-party fidelity bonds
and business auto. "We are the largest U.S. insurer of security guard firms
and private investigators," says Brendan. "We are also a major provider for
other service industries requiring coverage for unique exposures such as pest
control operators and the cleaning and maintenance service industries."
The brothers Brownyard say that their focus on security guards was really the
result of an accident. "Some years ago, we were asked to speak before the
National Association of Licensed Detectives," says Bryan. "In the course of the
meeting, we discovered that members of the association did not have adequate
insurance coverage. That's how we began specializing in the area."
As for their expansion into other areas, well, buildings that have security
guards also have pest control operators and maintenance employees. "It was a
natural outgrowth of what we were doing in the first place," says Brendan.
However, their recent expansion may not seem like a perfect fit to some. The
Brownyard Group recently acquired the Hairdressers Agency, specialists in
professional liability for the beauty industry. "It's not really a departure for
us," says Bryan. "As a managing general agency specializing in service
industries, we saw this acquisition as a perfect fit. These are beauty schools, salons
and cosmetic manufacturers that are providing a service. As part of the
agreement, we took on the entire staff of the agency including Bill Peete and the
rest of the Hairdressers Agency staff onto our team. So, the expertise to deal
with the market is already there.
Brendan (left) and Bryan Brownyard are second-generation members of the
Brownyard Group, having succeeded their father, William H. Brownyard, who started
the business in 1950. Bryan's son has now joined the firm, as has Brendan's
"The Brownyard Group also owns Brownyard Claims Management (BCM), its own
in-house loss prevention and claim facility, so that all its insureds have the
advantage of prompt claims handling as well as all of the tools necessary to
reduce losses and insurance premiums, continues Bryan.
"With all the exposures our service industry insureds encounter, it is
important that they be offered custom-designed policies that fit their needs and
that protect them against exposures not covered by standard policies."
The Brownyards believe the expertise that they and their agency staff have
developed over the years position them well to deal with what many believe is
the coming hard market. "Standard and Poor's recently reported that some 56
insurance companies failed last year, 31 of them property and casualty insurers,"
says Brendan. "There could be more falling by the wayside this year. That
fact, coupled with the fact that companies are beginning to realize that there is
a definite need to return to sound underwriting, could mean that the coming
hard market will be more severe than the industry had previously anticipated.
I'm not saying that we will see a situation resembling 1984-85 again. But
classes such as the security guards industry have been underpriced for some time.
There will most probably be serious market corrections."
Bryan takes a somewhat stronger view. "When you consider that the hard market
of 1984-85 was in great part the result of a faltering stock market, which is
what appears to be happening today, it is not out of the realm of possibility
that we will see a similar scenario over the next year or so."
Another problem, according to Bryan, is that newer, less experienced MGAs
have been given latitude by the insurance companies they represent. "Some
insurers have not been monitoring their MGAs to keep track of the business they're
taking on. Those insurers could be in for a big surprise. The people in the
business who have been around for more than one underwriting cycle will survive.
Others won't be so lucky."
The Brownyards see as one of the strengths of their organization their close
ties with the Lloyd's of London marketplace. In our experience with Lloyd's,
we have seen that it is a marketplace of innovation. While some traditional
companies walk away from troublesome business when the numbers look bad, Lloyd's
has always found a way to work with producers. When there are bumps in the
road, Lloyd's underwriters prefer to fix things rather than turn around and
"We do business through A.M. Best A rated companies that are secure markets,
and our reinsurance programs are in Lloyd's," says Bryan. "And we have been
around for a long time. We're ready for the changing marketplace." *
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