Frederick Mutual Insurance Company

Carrier appetite summary

Overall focus / strategic notes: - Frederick Mutual has exited personal lines and now operates as a regional commercial-lines carrier. Personal lines renewal rights were sold effective January 1, 2024; current appetite is strictly commercial focused. - Primary commercial footprint: MD, PA, VA, DE, DC, and NC for Secure BOP® and associated coverages. Preferred business profile (Secure BOP® core): - General: Small to mid-size main street and professional accounts written on Secure BOP® in MD, PA, VA, DE, DC, NC. Target is stable, established businesses, modest to moderate hazard, good maintenance, and updated building systems. - Artisan Contractors: - Target: Commercial and residential contractors with up to $1,000,000 in payroll, generally 3+ years in business or equivalent experience, and no more than 25% of annual receipts from subcontracted work. - Classes: "Artisan-type" trades (carpentry, electrical, plumbing, small remodelers, etc.) that fit BOP framework. Commercial Umbrella is designed to sit over the Secure BOP® for these risks. - Office / Office Buildings / LRO: - Target: Office buildings up to 100,000 square feet and up to 6 stories; building owners that have updated major systems (roof, HVAC, electrical, plumbing) within the last 25 years. - Accepts medical offices, accountants, professional tenants, veterinary hospitals, and similar lower- to moderate-hazard occupancies. - Retail: - Target: Main street retail operations up to 35,000 square feet and up to $10,000,000 annual sales per location; no more than 25% of gross sales from off-premises operations. - Good fit for typical store-front retailers (apparel, gifts, specialty shops, etc.). - Processing & Service: - Target: Service-oriented and light processing accounts up to 35,000 square feet and $10,000,000 annual sales per location, with up to 25% of sales from off-premises operations. - Includes a broad range of professional and personal service businesses (e.g., dry cleaners, repair shops, small labs) that fit light-hazard profile. - Apartments: - Target: Apartment buildings up to $5,000,000 valuation per building, up to 6 stories, maximum $15,000,000 total insured value and up to 15 locations per policy. - Intended for well-maintained habitational schedules with updated systems and normal tenant profiles. - Wholesale & Distributors: - Target: Wholesale and distributor risks with buildings up to 35,000 square feet, $10,000,000 annual sales per location, and major systems updated within last 25 years. - Designed for light- to medium-hazard distribution operations; supports BPP and inventory-heavy schedules. Commercial Umbrella: - Offered as an excess liability option designed to complement Frederick Mutual Secure BOP® and (where written) Commercial Auto. - Minimum premium: $500; expected use is for small to mid-size commercial accounts in classes listed above. Geographic notes: - Licensed and actively marketing Secure BOP® and related commercial coverages in six jurisdictions: Maryland, Pennsylvania, Virginia, Delaware, North Carolina, and Washington, D.C. - Commercial Auto currently noted with eligibility in MD and PA; BOP and Commercial Umbrella minimum premiums are common across "all states" (MD, DE, PA, NC, VA, DC). - Appetite and payroll-rating tables vary slightly by state (different assumed owner/officer payrolls by state); always reference state-specific values when rating. Restricted / declined business indicators (inferred from appetite limits and structure): - Personal lines (e.g., homeowners, personal umbrella, personal auto) are no longer written by Frederick Mutual; any new personal business should be placed elsewhere. - Risks materially exceeding BOP sizing thresholds are outside normal appetite: - Contractors with payroll materially greater than $1,000,000 or heavy reliance on subcontractors (>25% of receipts). - Office buildings exceeding 100,000 square feet, over 6 stories, or with outdated/un-updated major systems. - Retail, Service/Processing, Wholesale & Distributors locations over 35,000 square feet or over $10,000,000 annual sales per location. - Apartments with building valuation over $5,000,000, more than 6 stories, total insured value over $15,000,000, or more than 15 locations per policy. - Higher-hazard classes (heavy manufacturing, high-hazard contracting, major habitational with poor loss history or un-updated systems, large frame mercantile, etc.) are generally outside the BOP appetite; underwriters expect agents to contact them for any borderline class. Key enhancement / coverage features (operational notes): - Secure BOP® automatically includes a Secure Advantage® enhancement endorsement (this is the default BOP enhancement; can be removed or swapped to Secure Plus® as appropriate). Enhancements provide increased limits for many property and liability extensions (accounts receivable, valuable papers, seasonal increase, electronic data, water backup, etc.). - Contractors Enhancement for artisan contractors automatically adds: - Blanket Additional Insured for ongoing operations when required by contract. - Contractor’s Installation and Tools & Equipment coverage. - Voluntary Property Damage coverage. - Primary and Non-Contributory wording. - Per location and per project aggregate. - Apartment, Retail, Service, and Wholesale/Distributor packages include tailored enhancements (e.g., Tenant Move-Back Expense, Bailee’s coverage for dry cleaners, Selling Price valuation for inventory, expanded off-premises BPP, outdoor property, etc.). - Optional third-party endorsements available for many commercial BOP risks: Commercial Service Line, Tech Advantage (Equipment Breakdown), Employment Practices Liability, Cyber Suite, Commercial Inland Flood, Contractors E&O, Miscellaneous Professional Liability, and Business Risk Protection; these are written via a partner carrier but coordinated through Frederick Mutual. - Business Risk Protection (BRP) is automatically attached to each SBOP policy to help small businesses manage contractual and compliance risk (e.g., construction agreements, job proposals, leases, subcontractor agreements). Submission / processing expectations: - Target distribution is independent agents in the six licensed states; online quoting and policy issuance are done through the Frederick Mutual BriteCore portal (frederick.britecore.com). Agents must be appointed or access the market via approved intermediaries (e.g., IMS in some states) per the Agent Guide. - Standard commercial lines minimum premiums: - BOP: $500 (all states in footprint). - Commercial Umbrella: $500 (all states in footprint). - Commercial Auto: $500 (MD and PA). - Payment plans available for commercial lines (all subject to $500 minimum premium for BOP/Umbrella): - Annual: 100% at inception; required for $500 minimum premium policies. - 2-Pay: 50% at inception, 50% at 6 months; available for policies with premium $501+. - 4-Pay: 25% at inception plus three quarterly installments; available for premiums $1,001+. - 6-Pay: 16 2/3% at inception plus five bi-monthly installments; available for premiums >$2,500. Must choose the "Six-Pay" option in BriteCore. - Installment fees and billing: - Installment fee: $5 per installment (including the first) in all states except NC, where the fee is $3; no fee on Annual plan. - NSF fee: $25 per item for returned checks or failed electronic payments. - Policyholders may register at My.FrederickMutualInsurance.com for online payments and to earn an e-policy discount. Broker / producer operational notes: - Frederick Mutual emphasizes underwriter accessibility and expects agents to contact commercial lines underwriters for any risk falling outside printed appetite parameters or where class eligibility is uncertain. - Commercial lines agency support and underwriting contact: - Commercial Lines Department: commlines@frederickmutual.com. - Dedicated Agent Support Center: (301) 304-1843 (press 1 for commercial; other options for claims, billing, portal login/licensing, etc.). - IT assistance for portal/access issues: helpdesk@frederickmutual.com. - Claims reporting options for insureds and agents: email claims@frederickmutual.com; after-hours phone line; or online submission via company website and policyholder portal. - Agents working through Independent Market Solutions (IMS) in MD and other states must follow IMS sub-producer agreement instructions and Frederick Mutual guidelines as incorporated in that agreement when placing Businessowners and Commercial Umbrella business. Practical underwriting usage: - Use the appetite thresholds (payroll, square footage, story limits, sales/TIV caps, subcontractor percentage) as quick screens for eligibility. If a risk is slightly outside a stated limit but otherwise attractive, email the commercial lines underwriter with full details before declining or marketing elsewhere. - For contractors, always verify years in business/experience, subcontractor percentage, and type of work to confirm "artisan" profile; heavier GC exposures, structural work, or high-hazard trades are likely out of appetite. - For habitational and real estate, confirm building age and dates of major systems updates; properties without updates in the last 25 years will require underwriter review and are often not a fit for the standard package. - When layering Umbrella, Frederick Mutual expects the underlying GL/BOP (and Auto where applicable) to be written with the company for consistency and underwriting control.

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