Ask Your Peers  Discontinued Operations GL in Texas (Closed)

A client (garage) just sold their business and is looking for discontinued operations coverage for potential liabilities arising out of a BI or PD occurrence in the future for work they did while operating their business.

Hi Chris,

Unfortunately we do not have any direct relationships with anyone that can help you write Discontinued Operations, but we are confident that the agent community in this group will step up and help you find someone that can help you. 

Good luck!

Chris,
If the GL/Garage Liability policy written on an Occurrence form there shouldn't be an issue. The Occurrence trigger would be the date they worked on vehicle. The policy in force at that time would respond. Since we have various forms you may want to make sure the policy doesn't exclude.

Chris, good morning. AGA would need additional details but we would love to assist you. Thank you!

I have had to deal with this issue several times over the years. I have found that when possible, continuing the present GL and paying minimum premiums is a better course. There are specialty line carriers who will entertain discontinued PCO, but the underwriting is always skeptical because not every business that closes needs or seeks discontinued PCO, thus underwriting assumes there is a problem lurking somewhere. Minimum premiums for discontinued PCO were always much higher than the minimum premium for continuing the present GL, in my experience. If the entity is a corporation or LLC, they can continue present coverage until they can dissolve the corporation.

Thanks for all the great info!

Hi Chris,