Reliance Launches Online Business Owner's Policy

Reliance National Insurance Co. said it is expanding its portfolio of electronic-commerce insurance coverages with the introduction of eBOP, found at www.reliance-ebop.com. The site will let insurance agents obtain price quotes and bind commercial property and liability coverage online. Reliance's eBOP is a Business Owner's Policy, a package of property insurance and general liability insurance coverages tailored for small businesses.

EBOP, Umbrella Online and CyberComp will be marketed through Point, Click & Bind, a new Reliance company focused on e-commerce insurance business. As announced in February 2000, Reliance is exploring a full range of strategic options for maximizing the value of its Internet insurance operations. One of these options, a proposed partial spin-off of Point, Click & Bind, announced in October 1999, has been deferred while Reliance considers other strategies that are potentially more advantageous.

The eBOP system consists of an online application containing a brief set of questions that agents complete for their clients. Once an agent inputs the data into the password-protected web site, a sophisticated computer program determines whether the electronic submission meets Reliance's underwriting criteria. If the customer qualifies for coverage, a price quote is generated, and the agent can bind coverage and select a payment plan with a few simple keystrokes. The entire transaction typically takes less than seven minutes online.

The product is designed for retailers and service businesses with up to $5 million in gross revenues; wholesalers with up to $7 million in gross revenues; fast food establishments with up to $3 million in gross revenues; artisan contractors with up to $2 million in gross revenues; and building owners with property valued up to $5 million.

The property portion of eBOP includes coverage for building premises, business personal property and business disruption, as well as for other property-related losses. EBOP offers property limits of up to $3 million for fast food establishments, and up to $5 million for all other classes of business.

The commercial general liability (CGL) portion of the policy provides coverage for legal defense costs, settlements, judgments and other expenses associated with claims brought against the insured by third parties. Coverage applies to liability involving bodily injury, property damage, personal injury, advertising injury and other business-related risks. Insureds may select a limit of liability of either $500,000 or $1 million per occurrence. Additional property and liability insurance protection is available by endorsement. Reliance insurance companies underwrite insurance coverages.

Beginning March 31, 2000, eBOP will be offered in Illinois. Other states will come online in the next few months.
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