Nationwide is seeking to aggressively grow their contractors’ book to become the market leader of Residential Remodeling and Maintenance Contractors. We can also look forward to a significant double rate decrease in the General Liability line for new business.
Nationwide has a broad appetite for small commercial contractors offering most lines of coverage, including General Liability, Business Auto, Worker’s Compensation, Property, Umbrella, and Inland Marine. There are various opportunities for your small contractor customers and more on the horizon.
Small Commercial Contractors Appetite
Your contractor customers qualify for Nationwide’s small commercial appetite if payroll is up to $750K with flexibility in sub costs. Commercial and residential Artisan Trade Contractors is the target segment staying away from new home builders. Nationwide strives to be a market leader in the below classes.
- Electrical
- Plumbing
- HVAC
- Janitorial Services
- Painters
- Paving
- Internal & External Painters – 3 stories or below
- Flooring
- Ceramic Tile, Indoor Stone, Marble, or Mosaic Work
- Carpentry & Cabinetry
- Appliance Installation
- Landscapers & Lawn Maintenance
- Fence Installation
- Garage Door Installation (no new residential construction)
* Under $50K in sub-cost payroll qualify for expedited underwriting. Over $50K in payroll sub-cost will need an executed sub-contractors agreement. These classes were chosen given the market opportunity, generally desirable exposures, and Nationwide’s ability to write most lines of coverage.
Worker’s Compensation
There are 14 different contractor class codes for Worker’s Compensation to bundle with General Liability.
Eligibility for WC classes in small commercial is:
- At least one year in business but can be a new WC.
- A minimum of $50K payroll
- No monoline WC for contractors
Class Codes:
0042—Landscaping Gardening
5146—Furniture or Fixtures Installation
5183—Plumbing NOC
5190—Electrical Wiring – within Buildings
5215—Concrete Construction Incidental to Private Residences
5221—Concrete Construction – Floors, Driveways, Yards, Sidewalks
5348—Tile, Stone, Mosaic, or Terrazzo Work
5437—Carpentry – Installation of Cabinet Work or Interior Trim
5474—Painting
5478—Linoleum, Carpet, Vinyl, or Rubber Floor Tile Installation
5537—HVAC
6400—Fence Installation
9014—Buildings—Operations by Contractor
9102—Park NOC
Business Auto
Currently, monoline auto is not desirable for contractors. However, Nationwide is launching Vantage 360 Fleet, a free Business Auto (BA) telematics program for small business owners’ fleets from 1-20 autos. Your small contractor businesses can save 10% on each auto with an incentive program for drivers. Nationwide’s goal is to help these small businesses to improve driving behavior, safety and reduce claims to minimize potential unplanned costs. Vantage 360 Fleet will be launching in Florida on July 1st, but you can start adding today!
Nationwide has great loss control resources and materials to help you prospect and advise your insureds into mitigating losses, especially in the contractors segment. For more details, check out the video and additional resources below:
Resources:
- Vantage 360 Fleet agent website
- Vantage 360 Fleet agent benefits sheet
- Vantage 360 Fleet customer-facing marketing flyer
- Nationwide.com/Vantage360
- Nationwide – My Loss Control Services
Conclusion
Overall, Nationwide has plenty of opportunities as they lead small commercial contractors in today’s market. We can also look forward to the BOP product for contractors, new hybrid small market WC dividend plan, pay-as-you-go WC solution, simplified risk transfer guidelines, and expanded contractors’ appetite. Don’t wait; go ahead and send submissions to your assigned underwriter today!
This content is strictly informational and should not be used as specific advice on insurance products, legal, accounting, and/or tax related matters. Insureds should always contact the appropriate licensed professional for their insurance, legal, accounting, or tax needs.
