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Policy Highlights: Colonial General Insurance Agency, Inc. offers a Salvage Yard Insurance program tailored to the unique risks of salvage yards, auto dismantlers, and impound facilities. Through our Commercial Garage department, we provide agents and brokers access to a broad set of coverages crafted for this niche industry. Whether your client operates a small yard or a larger facility with towing and vehicle sales operations, our underwriting team will work with you to secure appropriate protection. Ideal Accounts and Appetite Our program is a strong fit for: Auto salvage yards and recyclers Vehicle impound lots (fenced and gated) Auto dismantlers with parts resale operations Operators offering towing services or in-transit vehicle movement Facilities selling vehicles “AS IS” All accounts must meet basic security requirements, including fully fenced and gated yards. We accept “AS IS” vehicle sales and towing operations, making this a flexible solution for complex garage risks. Accounts with poor site security, extensive on-site retail operations unrelated to vehicle parts, or significant environmental contamination exposures are generally not a fit without mitigation. Coverage Highlights and Advantages This program delivers Commercial Garage coverage options customized for salvage operations, including: Garage Liability limits up to $1,000,000 per accident $3,000,000 aggregate liability limit $5,000 medical payments Garage Keepers coverage on a primary basis with specified causes of loss Dealers Physical Damage False pretense coverage Fire legal liability In-transit coverage for towing operations Broadened coverage endorsements available Property coverage options These coverages help your clients manage exposures tied to customer vehicles, on-site property damage, theft, and liability from sales or towing operations. Endorsement flexibility and a garage-focused underwriting approach make the program useful for mixed-operation facilities. Underwriting Notes and Minimum Premiums Underwriting is done on a risk-by-risk basis. We look for well-managed operations with adequate security, documented safety practices, and acceptable claims histories. Fully fenced and gated facilities are required for eligibility. Minimum premiums vary by state and risk characteristics; our underwriters will provide state-specific guidance when you submit an inquiry. Territories and Availability Colonial General’s Salvage Yard Insurance program is available in the following states: Arizona (AZ) California (CA) Colorado (CO) Idaho (ID) Nevada (NV) New Mexico (NM) Utah (UT) Wyoming (WY) Coverage is placed through a mix of admitted and non-admitted markets depending on carrier appetite and state regulations. Why Work With Colonial General? As a Managing General Agency and Excess & Surplus Lines broker, Colonial General brings deep expertise in garage and auto-related risks. Our team understands salvage yard exposures and offers hands-on underwriting, fast responses, and access to multiple carrier relationships. We help agents place tough-to-insure accounts with practical coverage solutions and the flexibility many salvage operations need. Example scenarios that fit this program: you have a client who runs a fenced salvage yard with onsite dismantling and occasional “AS IS” sales; or a tow operator who stores impounded vehicles in a secured yard and needs both in-transit and garage keepers coverage. For these and similar risks, Colonial General can be a placement option. Have a client with a fenced salvage yard that also offers towing and sells vehicles “AS IS”? This program is built for that type of operation. Contact us today to discuss your next salvage yard risk. Frequently Asked Questions What types of accounts are a good fit for this program?Ideal accounts include salvage yards, auto dismantlers, impound lots, and operations with towing or auto sales components. All facilities must be fully fenced and gated. Is coverage available for towing operations?Yes. The program includes in-transit coverage for towing operations, making it suitable for businesses that regularly move vehicles as part of their services. What are the minimum underwriting requirements?Facilities must be fully fenced and gated. Underwriters also review safety practices, claims history, and the overall scope of operations when assessing eligibility. Can this program accommodate “AS IS” vehicle sales?Yes. “AS IS” sales are acceptable within this program, which provides flexibility for many salvage and resale operations. Which states is this program available in?This program is available in AZ, CA, CO, ID, NV, NM, UT, and WY. 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.

Insurance Program Managers Group (IPMG) offers a specialized Scrap Metal Dealers Insurance program designed to help agents and brokers place workers’ compensation coverage for businesses in the scrap and recycling industry. With access to multiple A-rated carriers and markets that can handle higher-risk accounts, IPMG delivers flexible, responsive solutions across a range of states. Ideal Accounts and Appetite This program is built for businesses that handle metal recycling, salvage, and related operations. Ideal accounts include: Scrap metal yards and collection points Auto salvage and dismantling operations Industrial recyclers and processors of metal-based materials IPMG will consider accounts with elevated experience modifications or a prior loss history and can help determine the best market placement. Typical declines include operations with severe, unresolved regulatory issues or exposures outside standard scrap metal activities. Coverage Highlights and Advantages Fast turnaround—same-day quotes available when submissions are complete Access to A-rated carriers focused on workers’ compensation for this niche Markets that will consider high-mod or distressed accounts depending on underwriting Minimum premium beginning at $5,000 The program addresses core comp exposures for scrap handlers: material handling and sorting, heavy equipment operation, transportation of loads, and shop/dismantling activities. Whether your client is a small local yard or a regional processor, IPMG offers underwriting experience and placement options tailored to these risks. Submission Requirements To obtain a quote, provide: Completed Accord application with a clear description of operations Three to four years of currently valued loss runs Current Experience Modification Rating (if applicable) Territories and Availability This workers’ compensation program is available in: AL, AR, GA, IL, IN, KS, MS, MO, NV, NC, TN, VA, and WV. IPMG leverages different markets by state to find the best fit for a given account. Why Work With IPMG? IPMG specializes in niche and complex workers’ compensation placements. Their underwriters understand the operational hazards common to scrap metal and recycling businesses and can navigate placement for accounts other markets may avoid. Agents benefit from quick responses, broad market access, and a partner comfortable with higher-mod or challenged files. Example scenarios: You have a regional auto salvage yard with heavy equipment and a recent uptick in claims — IPMG can evaluate available markets that will consider the account. A small scrap collection business needs comp coverage but has a higher mod; IPMG can help you prepare the submission and target appropriate carriers. Frequently Asked Questions What types of accounts are a good fit for this program?Scrap metal dealers, auto salvage yards, and industrial recyclers are ideal candidates for this workers’ compensation program. Can IPMG handle high mod or distressed accounts?Yes. IPMG works with markets that will consider accounts with high experience modifications or prior losses, subject to underwriting review. What is the minimum premium for this program?The program starts at a minimum premium of $5,000, though actual premiums depend on payroll, classification mix, loss history, and underwriting. What documents are required for a quote?Provide a completed Accord application, 3–4 years of currently valued loss runs, and the current experience mod (if available). Which states is this program available in?This program is available in AL, AR, GA, IL, IN, KS, MS, MO, NV, NC, TN, VA, and WV. Need help placing an account? Connect with a market specialist.

Salvaging Clients/Prospects In A Stagnant Economy
SALVAGING CLIENTS/PROSPECTS IN A STAGNANT ECO...