JM Associates/Burnham + Co., a Division of HUB International Northeast, partnered with The Hartford to create a general liability program for elevator contractors, inspectors, consultants (excluding E&O), manufacturers and distributors. Here, Vice President John Tateossian (pictured) discusses the program's origins, how it is administered and the complex exposures—and necessary cover—for those who work in the business of transporting human beings from floor to floor.

Q: Let's go back to the beginning: When and how was the program forged? What were the market needs that were identified to support such a program, and how did The Hartford become involved?

A: The National Elevator Insurance Program today is actually the amalgamation of the elevator programs of JM & Associates and Burnham + Co. Burnham began providing insurance for the elevator industry in the 1970s after identifying a need in the marketplace, from both coverage and overall expertise. The first elevator account was written in 1972. JM & Associates began writing elevator accounts in the 1990s. Our program today is the culmination of individual client relationships, some going back three generations, as well as consistent involvement and presence in the elevator industry. Our National Elevator Insurance Program today is the product of several decades of our focus and dedication to the highly specialized elevator industry.

In our continued effort to be at the forefront of providing insurance to the elevator industry, we began our partnership with The Hartford in 2012. After 40 years of creating comprehensive insurance and risk management products to the elevator industry, we were excited about embarking in a new partnership with a reputable and valued insurance carrier.

How would you describe your company's role in administering the program and serving clients? Obviously your team is deeply knowledgeable of the exposures faced by those who work in the elevator industry, but who plays what role in enabling insureds in this space to secure the appropriate cover?

Our program takes pride in staying up to date with current trends in both the insurance and elevator industries simultaneously. As trends impact one or both industries, it is critically important that we also adopt changes to our program, so as to remain the premier insurance provider to elevator customers nationwide. The elevator industry can be risky, so it is imperative to have an insurance broker that truly understands the exposures, technology and how to best protect insureds in the event of a claim.

The majority of our employees have over 20 years of experience arranging insurance solutions for customers in all facets of the elevator industry. This level of experience is a pre-requisite to adequately service an elevator customer; from the issuance of certificates of insurance, to providing insurance solutions tailored to the elevator industry and finally responding with our Claims team in the event of an incident. Each person on our team plays a critical role in ensuring that not only is the proper coverage in place, but that we consistently deliver superior service to all our customers. As customer needs and insurance requirements can vastly vary from state to state, our team can respond regardless of the jurisdiction, but the key is identifying the differing requirements.

As a full-service program manager, we must individually underwrite each risk, either by partnering directly with an insured or their local insurance agent. We are responsible for educating all our customers and carriers about the risks associated with the elevator industry and how to insure these risks. A critical aspect of our service comes into play when there is a claim or incident, at which point our Claims team goes into action. The team is comprised of our seasoned in-house claims professionals, adjustors experienced in handling elevator claims, elevator industry experts and engineers, investigators and lastly attorneys who specialize in elevator related claims. The team can respond within minutes of an incident and in the event of a claim, will continue through its life cycle. The majority of the legal firms we use as part of our program have many years of experience defending elevator claims and are known nationally for their expertise. It is critical that we execute in all aspects of the handling of an insured.

What are some of the most common exposures for those who work in the elevator industry, and what kind of specialized insurance protections are required for them to do business? And what are some of the exclusions, if any, that come up in policies?

Our broad base of expertise in insurance for the elevator industry enables us to identify the differing underwriting exposures associated with various facets of the elevator industry; such as the difference between a modernization contractor, an elevator inspector and a manufacturer of elevator cabs. While there are common exposures consistent with other contracting risks, such as slip and falls or being struck by an elevator door, a risk can vary depending on the type of work and jurisdiction. Our elevator customers most commonly need general liability, workers' compensation, excess liability, commercial auto, property, inland marine and sometimes bonds. As part of the National Elevator Insurance Program, the general liability provided through The Hartford is done on a first dollar basis, so there is no deductible or self insured retention. This is particularly important because an elevator claim could involve multiple claimants, and in the event that a GL policy is written with a Per Claim deductible, this could be troublesome for an insured.

The General Liability product we provide, includes several coverage enhancements, thereby eliminating the need for costly mid year policy changes and addressing the coverage insureds are being required to carry. The often manuscipted coverage enhancements as part of our General Liability policy include; Per Elevator Aggregates, Blanket Additional Insured coverage, Blanket Waiver of Subrogation coverage, Primary and Non-Contributory coverage and Limited Pollution. We continuously work with our customers as their insurance needs change throughout the year to ensure they are adequately protected.

We strive to offer the best coverage available in the marketplace, offering general liability coverage on an admitted basis, which is often a requirement for our clients. An elevator company that is not written through our National Elevator Insurance Program may find exclusions or coverage restrictions for residential work, certain types of operations, completed operations, work above a certain height, third party suits arising from an injured employee and additional insureds. Additionally, they may be required to take on a deductible or self-insured retention.

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