Pekin

Carrier appetite summary

Sources located include Pekin’s Commercial Underwriting Guide (effective/revised January 2009) plus current public product pages. The Commercial Underwriting Guide remains the main published appetite/authority document for business lines and is framed as an internal/agent tool; actual current underwriting may be more restrictive and agents are expected to follow any newer bulletins and territory communications. GENERAL COMMERCIAL UNDERWRITING FRAMEWORK - The Commercial Underwriting Guide assigns an **acceptability grade (1–4) by class and line of business**. Only classes/lines graded **1** may be **bound** by agents without prior underwriter approval, subject to property binding limits. Grades 2–4 require non‑bound submission and/or are not written. - **Grade 1:** Routinely insured; agents may bind (within binding authority limits). - **Grade 2:** Considered if the specific risk is better than average for the class; **submission only, no binding** without approval. - **Grade 3:** Seldom written; **no binding**, extensive documentation required; consult underwriting before even assembling a submission. - **Grade 4:** **Declined**; not written under any circumstances. - The guide also provides **“Underwriting Considerations by Line of Business”** that can override the class grade if the specific risk has higher hazard exposures, poor loss experience, or inadequate controls. GEOGRAPHIC NOTES (COMMERCIAL LINES) - **Property:** Earthquake and other property coverage are limited to **Illinois, Indiana, Iowa, Wisconsin, and Ohio**; underwriting may decline otherwise acceptable classes if higher‑hazard processes are present. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Premises Liability:** Risks with more than incidental operations **outside IL, IN, IA, WI, and OH are not acceptable** for premises liability. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Workers Compensation:** WC can only be written for **Illinois, Indiana, Iowa, and Wisconsin**; employing workers or having more than incidental exposure in other states is **not acceptable**. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - Earthquake coverage has a **binding moratorium** in IL/IN/IA/WI/OH (and adjacent states plus TN) for 14 days after any 4.0+ magnitude quake in the region; binding authority for EQ is suspended during the moratorium and Pekin may extend or shorten the period. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) WORKERS COMPENSATION – KEY UNDERWRITING POINTS - **Territory:** Only **IL, IN, IA, WI** are eligible for WC; risks hiring in other states or with more than incidental exposure there are **declined** for WC. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Experience Mod:** Accounts with **mod > 1.00 require underwriter approval prior to binding**. - **High‑Hazard Work:** Risks where employees **routinely work above three stories** are **not acceptable** for WC. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Supporting Coverage Requirement:** WC must be written with **supporting General Liability or Garage Liability** for the same business (WC‑only is not allowed). ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - Operationally, agents should: - Check mod, operations, and any multi‑state exposure before marketing WC to Pekin. - Be prepared with full ACORD apps, currently valued loss runs, description of operations and height exposures; over‑1.00 mod or unusual hazards must be pre‑cleared with underwriting. COMMERCIAL PROPERTY & COMMERCIAL PACKAGE - **Binding Authority:** Agents must comply with **fire division property binding limits**; standard classes may still be rejected if higher‑hazard processes (e.g., flammables, heavy manufacturing) are present. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Eligibility:** Coverage is generally available for **IL, IN, IA, WI, OH** (with earthquake subject to its own moratorium rules). ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Inland Marine:** Must be written with **supporting business (usually GL)**. Adequate security is critical, especially for contractor’s equipment. **Individual items over $500,000 may not be bound without prior underwriter approval.** ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Boiler & Machinery (Equipment Breakdown):** Offered primarily for **small business**; ineligible exposures include cold storage plants, laundries, processing or manufacturing risks, power plants, sewage or water plants, and electric substations. **PD limits up to $5,000,000** may be available. Can be written monoline, but supporting coverages are encouraged. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Crime:** Employee dishonesty is handled through the **Bond Department** and may not be bound under a standard commercial package. Agents may **not bind** forgery/alteration, computer fraud, extortion, or guest property crime coverages without underwriting. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) COMMERCIAL LIABILITY (GL, PRODUCTS, PREMISES) - **Premises Liability:** Emphasis on **good housekeeping and premises maintenance**. Attractive nuisances and unusual hazards are closely scrutinized. Operations primarily outside IL/IN/IA/WI/OH are **not acceptable** except on an incidental basis. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Product Liability:** Pekin is generally a market for manufacturers/assemblers in **machine shop, plastic manufacturing, metal fabrication, and woodworking** classes; acceptability depends on product type and end use. **All manufacturing/assembly risks require prior underwriting approval and may not be bound.** Distributors/wholesalers that **relabel or repackage under their own name are not eligible** for products coverage. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) COMMERCIAL AUTO, GARAGE, AND UMBRELLA - **Commercial Auto:** - **No livery exposures** (e.g., taxis, limos, transport‑for‑hire) are written. - **Maximum radius is 200 miles**; longer‑haul trucking is outside appetite. - Specialized vehicles such as **mixers, tanks, cranes** are generally **not acceptable** and may only be considered with prior underwriting approval (no agent binding). ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Garage:** Any risk with **spray painting** must have a **UL‑approved spray booth** in use. Certain classes (e.g., some body shops, non‑franchised dealers) require specific Pekin questionnaires and may have protection class and operations restrictions (e.g., no 24‑hour towing, no major body work in some used‑auto classes). ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Commercial Umbrella:** - **Cannot be bound by agents.** A **complete application must be reviewed and approved by underwriting**. - All underlying **GL, auto liability, and employers’ liability/WC must be written with Pekin**, and **minimum underlying limits** must be satisfied (varies by risk type). ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) TARGET / PREFERRED BUSINESS THEMES (COMMERCIAL) - The guide’s grading shows broad appetite for **main‑street type risks** in IL/IN/IA/WI/OH – e.g., many retail stores, offices, apartments, service contractors, and small manufacturers – especially when: - Located in favorable protection classes (1–8) with good maintenance. - No student housing, boarding, or high‑hazard amenities unless specific conditions (e.g., fenced pools, no diving boards) are met. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - Manufacturing appetites focus on **light to moderate hazard** (machine shops, plastics, metal fabrication, woodworking) with strong controls; higher‑hazard or unusual end uses move classes to Grade 2–3 and require underwriter involvement. RESTRICTED / DECLINED CLASSES – HIGHLIGHTS - **General:** Any class shown as **Grade 4** in the guide is **fully declined**. Grade 3 is effectively quasi‑declined and only considered in exceptional, well‑documented situations. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Workers Comp:** - Employees routinely over 3 stories – **not acceptable**. - Any meaningful multi‑state operations – **not acceptable**. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Auto:** Livery exposures, long‑haul trucking (radius > 200 miles), and heavy specialized units such as mixers, tanks, cranes – generally **not acceptable**. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Boiler & Machinery:** Processing/manufacturing risks, power plants, utilities, sewage/water plants, cold storage plants, laundries – **ineligible**. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Crime & Bond:** Employee dishonesty and certain crime coverages **cannot be bound** through standard commercial lines and may only be placed via the Bond Department or with underwriter approval. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) PERSONAL LINES (HOME, AUTO, UMBRELLA, BOAT/WATERCRAFT) - Publicly available pages emphasize **coverage features, discounting, and high‑risk auto options** rather than detailed underwriting rules; the carrier expects agents to follow internal personal‑lines manuals not posted on the open website. ([pekininsurance.com](https://www.pekininsurance.com/personal/auto/auto-insurance/personal-umbrella-policy?utm_source=openai)) - **Personal Umbrella:** Provides excess liability over Pekin home/auto/boat; triggers after primary limits are exhausted and may cover additional personal liability torts (e.g., libel/slander). Agents should ensure underlying limits meet Pekin’s minimums and that all underlying policies are placed with Pekin when required. ([pekininsurance.com](https://www.pekininsurance.com/personal/auto/auto-insurance/personal-umbrella-policy?utm_source=openai)) - **Auto:** Offers standard BI/PD/Med Pay, with optional **Roadside Rescue, rental reimbursement, replacement cost for new autos, and loan/lease coverage**; also markets a **“High‑Risk Auto”** program for drivers with adverse records. Appetite details (e.g., MVR thresholds, prior loss history) are not public and must be confirmed in internal manuals. ([pekininsurance.com](https://www.pekininsurance.com/personal/auto/auto-insurance?utm_source=openai)) SUBMISSION & BROKER / PRODUCER NOTES - **Binding vs. Submitting:** - Agents may only **bind Grade‑1 classes** and only within stated property binding limits and territory rules. - **Umbrella, many manufacturing risks, WC with mod >1.00, high‑value IM items, specialized vehicles, and any class in Grades 2–3** must be submitted to underwriting **before binding**. - **Required Information (Commercial):** The guide references supplemental Pekin forms (e.g., body shop questionnaire, non‑franchised dealer questionnaire, renovation supplements for older buildings) for certain classes. Agents should expect to provide: - Fully completed ACORD applications and any Pekin class‑specific supplements. - Detailed description of operations, process hazards, and any work above 3 stories. - Photographs for certain property/real estate risks and **hard‑copy loss runs** for apartments and other property risks as noted in the footnotes. ([pinet.pekininsurance.us](https://pinet.pekininsurance.us/pdf/C/CommUndGline_20090101.pdf)) - **Supporting Lines:** Multiple sections stress **supporting‑line requirements** (e.g., WC must accompany GL or Garage; Inland Marine normally accompanies GL; some B&M written preferably with other lines). Presenting multi‑line accounts that keep key coverages with Pekin aligns with appetite. OPERATIONAL TAKEAWAYS FOR PLACEMENT - Focus Pekin commercial placements on **main‑street, multi‑line accounts in IL/IN/IA/WI (plus some property in OH)** with good loss history, no unusual hazards, and where multiple lines (GL, property, auto, WC, umbrella) can be written together. - Treat the Commercial Underwriting Guide as a **binding‑authority and appetite map**: - If the class/line is graded **1**, verify geography and hazard limitations, then you can generally quote/bind within your limits. - If **2 or 3**, **do not bind**; pre‑clear with the underwriter and be ready with thorough documentation. - If **4**, place with another carrier. - For personal lines (home, auto, umbrella, boats), rely on internal Pekin manuals and your underwriter/marketing rep for current eligibility criteria; the public site offers product positioning but not binding rules. Because the main Commercial Underwriting Guide is dated January 2009, producers should confirm any class or territory questions with current Pekin underwriting or marketing reps, particularly for newer exposures, class codes, and state expansions or contractions.

Referenced source pages