NEW industry vertical: Core Commercial Fabricare
Arrowhead has launched a new industry vertical: Core Commercial Fabricare. Core Commercial provides commercial insurance solutions for small-to-medium-sized businesses nationwide. We’ve teamed up with IWA Fabricare Advantage to offer our producers one of the industry’s leading products in this space. IWA has specialized in the Fabricare industry since 1946, providing one of the industry’s most comprehensive coverage options. Now they’re part of our Advantage BOP.
- View our Core Commercial Fabricare industry flyer.
- Note our appetite or target markets
- Fabricare coverages range from the usual BOP, property and more – to industry-leading Bailee coverage
- Learn more about our Bailee options plus site pollution coverage
- Our underwriting guidelines are fairly broad. Learn more below.
- Check out our producer tips for selling Fabricare – along with how to submit.
- Dry cleaners
- Commercial launderers
- Textile and linen suppliers (supplies linens to restaurants, hotels, spas, etc.)
- Restoration specialists (restoration for fabric/garments after fire, flood or mold)
- Coin-operated attended laundromats
- Uniform rental providers
- Available in all states except Indiana, Missouri, Louisiana and Vermont. Coverage soon will be available in New York, Florida and Washington.
Lines included in Core Commercial Fabricare coverage are
- BOP – Including options for industry-leading Bailee coverage
- General Liability
- Business Auto
- Workers’ Comp
Specialized coverages available:
- Business Interruption
- Equipment Breakdown at Replacement Cost with coverage for the boiler (includes an annual inspection)
- Bailee options (explained further below)
- Replacement cost of customer property
- Restoration/cleaning of electronic equipment
- Fabricare Advantage Extension (cost is per policy versus per location; view details here)
- Site Pollution Liability available directly through IWA (explained further below)
“Probably the biggest selling point – and what differentiates us from other fabricare solutions – are our Standard and Unlimited Bailee options, which include in-transit and in-storage,” said Walter Grote, president of Arrowhead Core Commercial. “We also include coverage for work in process, human error and mysterious disappearance. These are often excluded by standard carriers and probably most needed by dry cleaners, due to the processing exposure.
“Many dry cleaners believe they have this coverage – and even some of their agents think they do – under ‘customer goods or personal property of others,’ but when you examine the policy more closely, you see that it’s often listed as an exclusion.”
Another difference between personal property of others and bailee occurs at the time of the claim. Personal property of others requires an individual claim per garment and assessment to see if the total limit was adequate. If not, after all claims have been submitted, they will likely each be pro-rated to fit within the limit of coverage purchased. “This can be a time-consuming headache that catches the policyholder by surprise when they have an actual loss is sustained,” he said.
On the other hand, Bailee coverage losses are generally reported as one claim. Our Bailee coverage is offered with two options. Both include sub limits for transit, storage, damage in process, mysterious disappearance, Delivery E&O, and Furriers coverage with only one deductible per incident, rather than separate deductibles per garment.
- Standard Bailee offers $500,000 limit, $5,000 per article limit, $25,000 limit for work in process, Delivery E&O and Unexplained Disappearance options for deductibles ($1,000, $2,500, or $5,000).
- Elite Bailee offers Actual Loss Sustained/Unlimited Bailee with more options per garment limits and deductibles, along with options for higher limits on other coverages as well. It also offers full replacement cost of all customer property as an option.
Review our Bailee Comparison sheet.
Site Pollution Liability
“Site Pollution Liability is an essential coverage for this class that’s overlooked by most brokers,” explained Adam Weber, IWA President. “It covers soil contamination caused by dry cleaning solvents. It also includes bodily injury liability, property damage, clean-up and removal of contaminated soil.
“This coverage is provided by additional E&S carrier, claims made, requiring a separate application directly through IWA,” he added.
“We prefer active ownership businesses with three plus years in business and a good claims history,” explained Grote. “We also look for newer or updated buildings. We have a pretty broad underwriting appetite for this program with the only exception that 24-hour coin-ops are specifically ineligible, although fully attended laundromats are eligible.”
Producer tips for selling Core Commercial Fabricare
The best way to approach a dry cleaner, laundromat operator, etc. is in person, not on phone or email.
“These owners are very hands-on, often working the business themselves. Stop in, drop off flyer and card,” Weber advised. “If they’re too busy to talk, simply ask when they renew and tell them you’ll come back then. Be sure to get their email address.”
What we need for submissions
Core Commercial Fabricare can be rated/quoted/bound via ArrowheadExchange.com. You can quote and bind applications on our BOP platform, giving you fast competitive quotes for you and your customers.
Have on-hand your client’s annual sales and number of employees by location, and whether they are strictly retail (walk-in customers), wholesale (cleaning for other fabricare operations), or restoration (fire and water restoration of garments).
Be sure to ask: Do they offer fur storage? Do they have routes? Do they offer locker service for drop-off and pick-up in office and apartment buildings? Additional coverage is available for these situations.
Not yet a producer? Start here.