Weisburger Gains A New Business Partner

B.&D.A. Weisburger, a well-known name in the pest control industry, has teamed with a new business partner. The White Plains, N.Y.-based insurance agency recently announced that it will represent Westport Insurance Corporation for its pest control and green industries’ insurance programs on a nationwide basis.

Westport, in turn, replaces previous insurance carrier relationships for these programs. The carrier is owned by Employers Reinsurance Corporation (ERC), a subsidiary of GE Capital Services, and is headquartered in Overland Park, Kan.

Michael Weisburger, president of B.&D.A. Weisburger, said choosing the new carrier was a long-term decision that made good business sense for both parties (see related story). “A major factor in getting together with ERC was a built-in community of interest to build on for the future,” Weisburger explained. He cited Westport’s knowledge of the PCO industry and excellent claims handling reputation, as well as opportunities for coverage enhancement and expansion, as the primary reasons for the change.

For the past two years, the company has retained a staff of third-party claims handlers, Midlands Claim Administrators, Oklahoma City, Okla. “They’ve learned the business in their time with us,” said Weisburger, “and are staying with us through this transition.” Prior to employing Midlands, the company utilized traditional company-administered claims handlers who didn’t always understand the unique concerns of the PCO industry. “Westport knows the PCO field well and can only add to the improvements people have noticed with the work Midlands has done for us,” Weisburger said.

The decision to enter the nationwide PCO market was also beneficial for ERC. Previously, its Westport Insurance Corporation (formerly Coregis) focused on providing insurance coverage to PCOs mainly in California, according to Suzanne Shank, vice president of ERC and property/casualty manager of Westport.

“We wanted to expand,” Shank explained. “Weisburger has not only a great reputation, but a good book of PCO business in the rest of the country. Plus, they had already taken some solid first steps into the green industry. It seemed to us like a good match.”

B.&D.A. Weisburger, Inc. was founded in 1915 by Benjamin and David Weisburger and insures more than 2,000 pest control operators nationwide. Through its new “Weisburger Green” program, the company also serves the green industry, which includes lawn care operators, landscapers, and arborists.

Sidebar: A MUTUALLY BENEFICIAL RELATIONSHIP

When a major industry insurance broker switches carriers, that’s news. Richard Foster recently sat down with Michael Weisburger, president of B.&D.A. Weisburger; Charlie Carnesi, Weisburger vice president; and Suzanne Shank, vice president of Employers Reinsurance Corp. (ERC) and property/casualty manager of Westport Insurance Corp., to talk about it. ERC’s parent company is GE Capital Services, a subsidiary of General Electric Corp.

Foster: Ms. Shank, what brought Weisburger to the attention of ERC?

Shank: For nearly a decade, ERC’s Westport Insurance Corporation (formerly Coregis) has offered a PCO insurance program, mainly in California. We wanted to expand. Weisburger not only has a great reputation, but a good book of PCO business in the rest of the country. Plus, they had already taken some solid first steps into the green industries. It seemed to us like a good match.

Foster: Michael, what made Weisburger interested in a partnership with ERC?

Weisburger: First, I’d like to say that if I’m doing my job right, I have to be looking four or five years down the road. A major factor in getting together with ERC was a built-in community of interest to build on for the future. They already have a knowledgeable stake in the PCO industry, they care strongly about customer service, they have an excellent reputation for claims handling — all items we’ve always prided ourselves on. And, added to the opportunities for expansion, we’re now able to offer better coverage to our clients.

Foster: How so?

Carnesi: In the 30-plus years I’ve been at Weisburger, we’ve never made a change of carrier without improving our policy along the way. Now, beyond our regular pollution coverage to the policy limit, we’re adding pollution clean-up and monitoring coverage to a maximum of half a million dollars. That’s a major change and something unique in the PCO industry. In addition, we have the ability to extend our primary policy up to $10 million. That means a policy holder won’t have to buy an umbrella policy, and can choose a higher limit on a general liability policy, say, and a lower one on an auto policy. That gives the operator more flexibility of choice.

Foster: Like a good marriage, a good business alliance usually has some elements that match up and some that complement each other. How do you see it?

Shank: We’ve already mentioned some of the things that match. What ERC brings to the table besides financial resources is flexibility. Within our organization is a tremendous amount of expertise in dealing with a variety of insurance products. If it makes good business sense for us to offer a program that may seem out of the ordinary, for example, we have that capability. And we’ve had discussions about exploring alternate insurance programs for both the PCO and green industries, if the need for it comes to our attention. I think that’s an extension of our focus on providing customers what they need.

Weisburger: I’d also like to point out that ERC is an international company. Once we’ve paid attention to the missionary work that can be done in markets here in the United States, it doesn’t take much of a leap of imagination to think about crossing borders to the north and south if and when it makes sense to do so.

Carnesi: One obvious U.S. area of expansion is our relationship with brokers. Encouraging new, perhaps exclusive, partnerships with qualified people in certain areas is worth exploring, now that spreading our wings a little further is on the agenda.

Foster: What about claims handling? Are there any changes there?

Carnesi: No. One of the reasons we’ve had such good reaction to our claims handling recently is the third-party relationship we enjoy with Midlands. Because they’ve learned the business in their time with us, they know what to do, who to call, how to handle claims quickly, more efficiently, settle them faster.

Weisburger: With dedicated claims handlers, we’re not at the mercy of an ever-changing staff of “newbies” who, in the past, our PCO clients have occasionally had to train on site to deal with problems exclusive to the industry. In addition, the Westport outfit knows the PCO field well, and can only add to the improvements people have noticed with the work Midlands has done for us over the past two years.