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I need an MGA that has a market for an Auto Salvage Yard. The business has been around for almost 5 years and there are 4 employees. They do towing of the vehicle if needed. My client is mainly looking for liability on his business but is also interested in workers compensation.

Salvaging Your Investment After The Earthquak...

NO APPOINTMENT NEEDED TO OBTAIN A QUOTE! Salvage Yards and Auto Dismantlers — Including Pull-Your-Own-Parts Operations B&H Risk Services offers a specialized Auto Dismantling insurance program designed for salvage yards, auto dismantlers, and pull-your-own-part operations. Whether your client operates a full-service wrecking yard or a self-service dismantling lot, we provide tailored coverage that addresses the unique risks of the industry. No appointment is required to get started — making it even easier for agents and brokers to quote and bind business fast. Ideal Accounts and Underwriting Guidelines We welcome both traditional dismantlers and self-service salvage yards, with specific underwriting criteria for each: For Non-Self-Service (Traditional) Operations: • Entire lot must be fenced (minimum 4 feet in height) • No more than 3 vehicles stacked • Inspections are required for every risk • Car crushing allowed (some restrictions apply) For Pull-Your-Own-Parts Operations: • Same requirements as above, with some changes: • No more than 2 vehicles stacked • No use of auto jacks, cutting torches, or sawzalls — unbolting only Coverage Highlights Our program includes comprehensive protection specifically built for this high-exposure class: $1,000,000 / $2,000,000 Garage Liability Limits Optional UM/UIM coverage General Liability (GL), Garage, and Property coverages Damage to Rented Premises Garage Medical Payments Broadened Coverage Endorsements Additional Insureds Available Minimum Premiums and Submission Requirements The minimum premium starts at $500, making this program accessible for small and mid-sized operations. To receive a quote, a complete submission should include: Supplemental application Acord 125 and Acords for all desired lines Currently valued loss runs for the past 5 years (quoting may be possible subject to clean loss history) Policy forms govern. This summary does not alter policy terms or conditions. Available States This program is available in the following states: AL, AR, AZ, CA, KY, LA, MS, NC, OK, SC, TN, TX, VA. Why Work with B&H Risk Services? As a Managing General Underwriter and Carrier with access to multiple markets, B&H Risk Services delivers flexible, non-admitted solutions for hard-to-place auto dismantling risks. Our team understands the nuances of salvage operations, from vehicle stacking limits to public access concerns. We streamline the quoting process and deliver competitive options tailored to your clients’ needs. Whether your client runs a small auto salvage yard in Texas or a busy self-service dismantling operation in California, our program provides the tools and protection they need — and the fast, responsive service you expect. Frequently Asked Questions What types of accounts are a good fit for this program?Ideal accounts include salvage yards, wrecking yards, and auto dismantlers — both traditional operations and pull-your-own-parts models — that meet our underwriting criteria. Can I quote without full loss runs?Yes, in some cases we can quote subject to loss runs if the account has a guaranteed clear loss history. Full loss runs for the past 5 years are preferred. Are there restrictions on equipment used in pull-your-own-part yards?Yes. For safety reasons, no auto jacks, cutting torches, or sawzalls are allowed. Only unbolting of parts is permitted in these operations. What is the minimum premium for this program?The minimum premium starts at $500, depending on risk characteristics and coverage selections. Which states is this program available in?This program is available in AL, AR, AZ, CA, KY, LA, MS, NC, OK, SC, TN, TX, and VA. Need help placing an account? Connect with a market specialist.

Claims Adjusting In A Hard Market
Agents who’ve experienced a hard market know that claims are often scrutinized much more closely than they are in a soft market. Unfortunately, circumstances sometimes lead to the denial of claims that are covered regardless of market conditions. This document by the Virtual University faculty provides an example of what you might see more of in the months to come. 'Can the expiration of a lease trigger the end of a Business Income (BI) claim? We have a retail client who had a location at the World Trade Center in New York. His lease technically expired on 12/31/01. Even if he wanted to, there is no lease available to sign, and probably won’t be for some time. Prior to 9/11, he had every intention to renew the lease, and also was planning to extend his space. The insurance company has frozen any further claim payments because they have found out about the lease expiration. Additionally, the company has had all inventory taken from this store, but they have not yet paid any salvage because 'they have not yet been paid.’ This also seems ludicrous. What do you think?' You don’t want to know what our faculty members think about this claim as presented. However, below are their comments, edited as a matter of public decency. FACULTY RESPONSE NO. 1 Assuming ISO forms, neither of these situations makes sense. Expiration of a lease has nothing to do with BI recovery. The end of a lease does not end BI recovery absolutely, and salvage is something a company seeks after they make payment as called for in the policy. FACULTY RESPONSE NO. 2 No, there’s nothing in the policy that says the expiration of a lease causes a BI claim to halt. Is the company using Special Exclusion 4(b) in the Special Cause of Loss Form (Leasehold Interest) as their reasoning for the termination of payment? That type of loss doesn’t appear to be at issue here. FACULTY RESPONSE NO. 3 The lease has nothing to do with the BI payment. The 'period of restoration' definition does say... ends when the property at the described premises should be repaired ...' It doesn’t say anything about the lease. FACULTY RESPONSE NO. 4 Let’s deal with the salvage first. The carrier gets the salvage when they pay the claim. The insured should demand payment according to the contract, usually within 60 days. The Causes of Loss form states that if a contract is cancelled, the payment of the BI loss would end at the expiration of the Period of Restoration, and not pay for the cancellation of a contract beyond the period of restoration. The carrier is applying a theory that isn’t stated in the contract, nor supported in the cancellation of contract exclusion. The Period of Restoration is the governing factor that will determine the length of claims payment. The policy and case law are clear that the insured doesn’t have to reopen after a covered loss, and that the carrier’s obligation to pay net profit exists for the Period of Restoration. The same would apply for this lease example. In practice, and also in several of the BI forms, if the insured has a lease with a renewal option, the option is considered activated in the event of a covered loss. This would extend a five-year lease with a five-year option into a ten-year lease. This benefits the insured when calculating the unamortized value of Improvements and Betterments if not replaced or under the Leasehold Interest coverage form. FACULTY RESPONSE NO. 4 On the salvage issue first, this is totally inappropriate. When the insured turned over the inventory, the insured must be compensated up to the applicable limits and terms. The recovery of salvage is a back-end activity. If the company recovers salvage, they apply it first to the insured’s uncovered direct loss, then to the payment by the carrier. The salvage process has no bearing on the initial payment to the insured. About the termination of the lease, the question needs to be explained further. First, do the lease payments continue following destruction of the leased property? If so, the expense for rent is no longer valid in the calculation of the Business Income claim, unless the insured leases or rents at another location. If they rent/lease at another location, the rent component will be based on the rent prior to the loss. If the rent is higher, Leasehold Interest coverage would be needed. Second, if the lease payments were to continue post-destruction, was the lease renewable at the insured’s option or did it have different renewal terms? As long as renewal terms were included and there was no indication of non-renewal, the continued lease payments would be included as a continuing expense. Remember, for an item to be included in Business Income, it must be a continuing expense, not just an expense that existed before the loss.