Capacity Coverage’s new Premier Properties Real Estate Insurance Program is an Industry First

MAHWAH, N.J., Sept. 14 /PRNewswire/ -- Commercial and habitational real estate companies now have access to more affordable insurance thanks to the new Premier Properties program from real estate insurance broker Capacity Coverage Company of New Jersey.

This first-of-its-kind offering in the commercial real estate insurance market can reduce premium costs and rewards real estate owners and managers whose risk management efforts reduce losses. Properties that have a long-term, better-than-average loss history can now get the cost-savings benefit of a customized aggregate deductible insurance program typically only offered to large companies. An insurance policy with an aggregate deductible requires the insured to pay all losses during the policy period until they have met the deductible, after which the insurer pays the rest.

"This is a brilliant and innovative property and liability program that provides an extremely competitive alternative for better managed risks. To further that, this program takes a pro-active approach to loss mitigation instead of just writing checks – an extremely important concept to reducing long term costs. I am certain that many of our clients will want to take advantage of this program" says R. Scott Wolff, CIC, CRIS, President of Premier Risk Management, LLC, a nationally recognized risk consultancy.

The Premier Properties program covers commercial office buildings, condominiums, cooperatives, rental apartments, mercantile/retail/shopping centers, and warehouse facilities with lessors' risk exposures where the facility owner leases its building to others.  Coverage is available for noncombustible and fire-resistive construction only. Policies are available to write both the General Liability and the Property or just the Property.

Capacity Coverage offers the program in New Jersey, New York, Pennsylvania, Connecticut, Massachusetts, Maryland, Maine, Vermont, New Hampshire and Delaware. Program details are available at www.premierpropertiesinsurance.com.

The Premier Properties program is designed to provide real estate companies with an alternative to expensive "first dollar" policies.  Properties with either liability and/or property premiums of $50,000 and above are ideal candidates for Premier Properties. Buildings or building portfolios with total insured values of at least $50 million are the best match for this new program.

"Currently most carriers offer customized deductible programs only to very large accounts, so the only option for most companies to reduce their insurance cost is to create their own alternative or captive insurance program.  Captive insurance is a form of self-insurance, in which a parent company forms its own in-house insurance company. Captive insurance is a costly and complex alternative that is best suited for very large companies," says Carl A. Gerson, CPCU, CLU, Chief Operating Officer of Capacity Coverage.  

Premier Properties real estate coverage provides the cost saving advantages of captive insurance for real estate insurance accounts that don't qualify for a customized deductible program.

"Premier Properties offers a customized deductible program to real estate owners and operators.  In addition to the premium that is paid, the amount of the deductible is held in a trust account and earns interest for the insured.  If the insured property has no claims or claims totaling less then the deductible fund, the balance of the deductible fund is returned with earned interest. That gives the real estate company a financial incentive to improve its risk management practices in order to significantly lower its overall cost of risk," observes Gerson.    

To further reduce costs, Premier Properties offers its customers access to a support team that includes a law firm specializing in liability insurance claims.  It has the resources to exercise a more proactive approach to claims management than is typical for real estate insurance claims, ensuring the rapid closure of claims and fighting nuisance and fraudulent claims.

Headquartered in Mahwah, Capacity Coverage Company of New Jersey, Inc. is one of the largest privately held brokerage firms in New Jersey. It is ranked the 40th largest insurance broker in the US by "Business Insurance Magazine." Capacity Coverage's Real Estate Division has led the real estate insurance marketplace with innovative new programs, geared towards the specific needs of the real estate industry for over 20 years.

To learn more call Carl Gerson at 201-661-2400 or email cgerson@capcoverage.com. And, visit www.premierpropertiesinsurance.com.

SOURCE Capacity Coverage