Inter Insurance Launches Universal Casualty, New York’s First Independent Automobile Dealers Association RRG
Recently, at the New York Athletic Club in New York City, Tim Derham and his professional team launched a new resource for the auto insuring market and it has begun to take off quickly. Derham, President of Inter Insurance Agency, Ltd., along with Paula Frendel, Executive Director, and Fred Donnelly, President of the New York Independent Automobile Dealers Association (NYIADA) have joined forces to form Universal Casualty Risk Retention Group, devoted to the insurance needs of its members.
The move comes in response to a most difficult spell for the line of business. 2017 found auto dealers scrambling for insurance coverage as several large retail insurers stopped offering coverage. A shortage of capacity coupled with steadily increasing rates led the list of problems affecting the sector adversely.
Highway accidents caused by distracted driving and related claims together with the advanced technology in cars and trucks that cost more to repair have resulted in a paucity of companies interested in the market. Making money in the transportation insurance business has become a challenge, one that the new enterprise hopes to address and solve in part.
The new entity will provide loss control services and write garage keepers liability, general liability, auto liability, and errors and omissions insurance for franchised and non-franchised auto dealers and all other businesses engaged in the automotive services industry in New York.
According to Tim Derham, to join Universal Casualty Risk Retention Group, dealers and other automotive servicers must become a member of the NYIADA, which currently represents over 6,000 auto dealers in New York State. Automotive servicers in other states may join as an affiliated member.
The risk association was started because “We feel automotive services is an underserved part of the insurance market,” said Tim Derham of Inter Insurance which is acting as managing general agent for he new company. “We want to offer dealers and other auto services options and flexibility that they don’t have now. And, we want to be profitable so that we continue in business for many years.”
The Executive Director of NYIADA Paula Frendel said, “Dealers have expressed concerns about insurance companies offering insurance to independent dealers in New York. The insurance market is diminishing for independent dealers. They will now have another option.”
In addition to strong customer service, the group will provide loss control services for many of the risks facing these businesses,” Derham said. “We will also provide more streamlined claims process to make filing a claim easier for members.” The risk association will partner with Inter Insurance to write other products, including dealer open lot, property and umbrella coverage.
Highlights of the event included: futurist speaker John Ellis; nationally recognized automotive franchise lawyer Len Bellavia; and globally known automotive retail Certified Public Accountant Ken Rosenfield. All speakers provided opposing views about the future of the automobile and the vehicle franchise model.
The event also featured the establishment of the Donald A. Derham Scholarship Fund at St. John’s University of Law. The Derham family created the fund not only to help a student in need, but also to pay tribute to Tim’s late father, Don Derham, who ran a successful insurance agency for many years in Nassau County.
Universal Casualty’s primary business address is in Jericho, NY. To reach the company, please visit their website at www.universalcasualty.com or call 1-877-215-0510.
