The Fac Files - 4 Concrete Facultative Strategies for an Awesome 7/1
Allergy medications, air conditioners rumbling to life and school buses slowly evaporating off the roads can only mean one thing: The 7/1 season is in full swing. It’s important to remember that amidst the flurry of activities, Fac can be a great way to write many of those last minute accounts. Here are a few REAL ways you can use Fac to write more 7/1 business.
1) SCHOOLS: Schools frequently have a 7/1 date and are chockfull of exposures that frequently generate Fac requests. In addition to higher umbrella limits, we often see carve-outs of specific exposures, such as school buses, bleachers, pools, foreign trips, and occasionally even such coverage parts as SDELL or Abuse and Molestation. Also, schools often capitalize on empty hallways to catch up on construction projects, which may require higher project-specific limits and/or standalone coverages such as Owner and Contractor Protectives (OCPs.) Many insurance carriers use Fac as a tool to limit their exposure in these cases because the jobs present a different complexion of risks than those contemplated in the operation of a school.
2) LARGE ACCOUNTS: Many large and national accounts have 7/1 dates. These are frequently complex risks with either KNOWN severity exposures, which Fac can effectively mitigate, or complex/emerging exposures, where a Fac reinsurer might have valuable insight or experience on similar risks.
3) “THEY HAVE WHAT?!” RISKS: That account you’ve been pursuing for three years is finally all but bound. As you gleefully dot and cross the last remaining i’s and t’s, you discover the client owns an aircraft it uses for weekly trips to visit customers, exposing four employees every week to a catastrophic WC loss. Or that the Connecticut-based contractor just signed a contract for a big job in New York, exposing him to New York Labor Law in a way you hadn’t anticipated. This phenomenon also frequently occurs in the wake of an acquisition. In these instances, carriers use Fac to sculpt their exposure to such surprises, ensuring nothing jeopardizes getting that big fish fully into the boat…and keeping it there.
4) LAST MINUTE RISKS: I don’t know about you, but all the monkey-wrenches in my life tend to arise at very convenient moments when there is plenty of time to address them thoughtfully and with great tenderness. If it turns out your desk is NOT like mine, you’re in luck, because when those unwelcome surprises do pop up at the very last minute, we can typically turn around a Fac quote within a day - even at unexpected times, as we have for requests at 2:30 p.m. on New Year’s Eve and 4:00 p.m. on the Friday before Memorial Day where quotes were needed, and provided, within hours. Both true stories.
So as 7/1 wreaks its havoc on your sanity, know that you have a friend in Fac. While it’s tempting to toss some of the above situations onto the “too hard” or “not enough time” piles, before you do, make a quick call to your friendly neighborhood Gen Re Fac representative. We can help ease your concerns and put you in a better position to write those accounts, leading to an awesome 7/1.