You may ask, "What does this have to do with me? I am just a safety person."
Again, if you are in the staffing industry, you know that the lifeblood is Workers' Comp. Unless you work for a very large staffing company, that as a safety person/risk manager, you are involved with many aspects of the company: safety, risk management, underwriting, and maybe even insurance.
The loss of ULLICO reduces an already dwindling field of insurers for the staffing industry. Depending on how good your management team is and the broker you use, the loss of ULLICO could also mean the loss of your job.
ULLICO has long been known in our industry as a "fronting company" for another insurance company for the states that they were not in. California was the biggest. There were also those few staffing companies that had their own direct ULLICO policy. Most of these were grandfathered in from long ago. Now these seem to be going away.
As policies expire, they will not be renewed. So, do you have a policy to replace your ULLICO policy yet? We had a replacement 6 months before our ULLICO policy expires. Here are some tips for a replacement policy:
- Don't assume that just because you were with big Insure CoI for a long time that every insurance company will welcome you with open arms.
- You may need more than 1 carrier to replace your single carrier.
- Insurers may cherry-pick. Yes you may have had a client 10+ years, but if they are a poor performer, the new insurer may not want them. Don't be penny wise and pound foolish.
- You may have to broker out some of your business. Again, don't be penny wise and pound foolish.
- You may have to bring in outside help. Our company has been brought in by many other staffing companies looking to replace coverage. They bring us in to audit/fix/create their EHS programs, help put a submission together and to take them to carriers that we have relationships with senior management with.
- You will probably have to raise rates. Remember, you are starting new with your replacement carrier.
- If senior management is not aggressively seeking a replacement policy, you may need to start looking for a new job.
Here is a copy of the rehab notice from the State of Delaware:
Notice of Rehabilitation of ULLICO CASUALTY COMPANY
On March 11, 2013, Ullico Casualty Company, a Delaware domestic property and casualty insurance company (“ULLICO CASUALTY”) was ordered into receivership for purposes of rehabilitation by the Court of Chancery of the State of Delaware (the “Court”). The Insurance Commissioner of the State of Delaware is the court appointed statutory Receiver of ULLICO CASUALTY. The Receiver appointed George J. Piccoli as the Deputy Receiver to carry out the responsibilities of the Receiver with respect to the rehabilitation of Ullico Casualty. The company consented to the receivership. A copy of the Rehabilitation and Injunction Order (the “Order”) is enclosed. The Order, and all subsequent proceedings concerning ULLICO CASUALTY, will be conducted in accordance with Chapter 59 of the Delaware Code (18 Del. C. § 5901 et seq).
ULLICO CASUALTY was licensed in May 1979, and is headquartered in Washington, DC, and Silver Springs, MD. The company writes Workers' Compensation, Fidelity/Surety, Fiduciary Liability, Professional Liability, Commercial Auto, Commercial Multi-Peril in forty-eight (48) States. Pursuant to the Order, all persons or entities are enjoined from instituting or further prosecuting any action at law or in equity, or proceeding with any pretrial conference, trial, application for judgment, or proceedings on judgment or settlements and such action at law, in equity, special, or other proceedings in which ULLICO CASUALTY is obligated to defend a party insured or any other person it is legally obligated to defend by virtue of its insurance contract for a period of 180 days from the date of the Order. All persons or entities having in their possession Assets or possible Assets are enjoined from transacting any business of, or on behalf of ULLICO CASUALTY or selling transferring, destroying, wasting, encumbering, or disposing of any of the Assets, without the prior written permission of the Receiver or upon further Order of the Court. All persons holding Assets of, or on behalf of ULLICO CASUALTY, are directed to comply with Paragraph 9 of the Order. The company’s existing policies are not cancelled by the Order. All persons are required to fully comply with the terms of the Order.
If You Have Any Questions:
Until further notice, policyholders, claimants, agents, brokers, attorneys, and other persons with questions regarding ULLICO CASUALTY, in REHABILITATION should visit the website at: http://delawareinsurance.gov/departments/berg/rehab_bureau.shtml. (Please note that there is an underline between the words “rehab” and “bureau” in the website address.);
or call 1-800-218-1044
Contact the Deputy Receiver directly as follows:
ULLICO CASUALTY COMPANY IN REHABILITATION
c/o Delaware Insurance Department
Bureau of Rehabilitation and Liquidation
704 N. King Street, Suite 602
Wilmington, DE 19801