Auto Liability Coverage Comparison between Markel's TBL program and New York Marine's CTLP program

We are asked to compare coverages from time-to-time and I offer the normal disclaimer that any review is subjective and,as such, is subject to the actual terms and conditions of the actual policy in place. One of our agent's asked us to compare the TBL product to Avalon's program with New York Marine so I thought I would add this to the blog to help our agents/ their insureds understand it better . This should help irrespective if the other contingent auto carrier is New York Marine or someone else- as the coverage issues are relative to all carriers. And, more importantly, it makes sense to look at the coverage intentions of each carrier and understand their strenghts and weaknesses as it related to the following coverage interpretation: I will tell you that the folks I know at Avalon are highly professional, and they have done a nice job creating a product called the Combined Transit Liability Program ( CTLP). They also include in one package other coverages and there are several bells and whistles in fringe coverages that are not available elsewhere- but I do not find them material. They also offer extremely cheap pricing so that makes them viewed with some interest by the marketplace. But the buck stops there in my view. While I certainly view the following interpretation as self-serving, I can tell you that Markel's TBL product is far superior in offering coverages for truck brokers versus New York Marine's CTLP. Here is why: •CTLP has policy aggregate of $1,000,000 . Most shippers are looking for auto coverage that has no aggregate. TBL has no aggregate in the current policy- A huge deficiency especially for truck brokers who have a larger sales volume. •CTLP policy form is contingent coverage. TBL is primary coverage. Does an insured want to see if another policy pays before the coverage responds in the current policy? The answer is of course not. •CTLP policy form is geared toward customs brokers. The TBL policy is specific to truck brokers. Not a big deal but there seems to be jargon and ambiguity that is not geared to truck brokers. •The CTLP policy excludes punitive damages. There have been punitive damages claims against truck brokers. The TBL does not exclude punitive damages presently. Obviously a big problem in the CTLP form... •Defense-I cannot tell whether defense costs are in the limits or excluded altogether based on the declarations pages and the coverage form . It does look like defense is optional. TBL is not optional in the current policy form. •CTLP will write specified contractual which is better than TBL. We are working on it. That being said, they exclude claims arising out of any agreement to indemnify which is the basis of most contracts so I feel this is a moot issue. •Pollution is excluded in the CTLP form; it is picked up subject to the terms by the TBL in the current policy. •CTLP has a 6 month claims timeline for turning in a claim under the CTLP form/ TBL does not have that provision •Policy form of CTLP excludes certain commodities- a big deal is the broker would have to pay attention not to broker certain commodities. TBL has no such exclusion. •CTLP policy has a deductible. The current TBL is no deductible. As mentioned the CTLP pricing is better than TBL pricing; however, that is about it except for contractual if they really provide same. -------------------------------------------------------------------------------- So at the end of the day, in my view the CTLP does not provide coverage that either the insured needs, nor does it satisfy the many broker-shipper contracts require. That being said, they sell a good bit of this coverage and I look forward to competing against it. I may have missed something but I do not think so. Again whether it is the CTLP or other coverage, look at the bullets above and make your own analysis.