I am currently insured with Hartford Insurance and have received a notice from them indicating that a 10% increase in premium is to be expected. While a religiously read most if not all of your postings, I decided to request a quote from Security America Risk Retention Group. They were prompt in returning a quote that was significantly less than my current policy with Hartford. I have two concerns which I have listed below:
    Hartford is an admitted carrier, is SARRG admitted in NYS? There response to this question was that  Security America RRG is licensed to do business is all 50 states, but does this mean they are admitted? If they become insolvent, who if any will honor my policy limits?
    Hartford provides me with blanket additional insured for complete operations, a blanket waiver of subrogation and a per project aggregate. Does SARGG provide the same?
    Their response was that the policy includes Blanket additional Insured, Wavier of Subrogation at no additional charge. However, there is a per project endorsement fee. 0-3 is $250 each endorsement or 4+ is a $500 annual flat fee.
    Should I be concerned with respect to the above items? I know that you promote SARRG over Hartford, but I do not want to leave myself exposed to costly litigation in the event SARRG becomes insolvent.
    I don't speak for SARRG so I asked SARRG to respond.  Bart's response is a bit technical, so let me respond first.  Yes I prefer SARRG because from my perspective the most important criteria should have how claims are handled.  Sure cost of premium and cost of additional insured certificates should e considered, but I don't think you're going to stay up at night worrying about a few extra bucks in premium or a $500 blanket charge for additional insureds.  I know you'll be up at night worrying about your claim if you have one.  And all night if that claim exceeds your policy limits.  The last thing you need is a hostile or aloof claims examiner and a defense attorney that couldn't care less about you or alarm law.
    Time was when insurance companies writing alarm E&O were specialty carriers or divisions.  They wrote alarm industry policies and they handled claims and cared about the law affecting the alarm industry.  That's just not the case today.  The major carriers don't appear to care about industry law, just watching their bottom line.  Nothing wrong with that unless the bottom line conflicts with the interests of alarm law, which too often it does.
    SARRG is a risk retention group and it carries excess coverage from Lloyds.  It is not likely to run out of money to cover your claim any faster than any other carrier.  More likely your limits of coverage will run out long before SARRG runs insolvent.   So to answer the question, feel safe with SARRG and if it's going to cost $500 for blanket additional insured certificates, it's worth it.  You'll probably save that much and more on the premium.
     SARRG is not admitted, however unlike other non-admitted carriers there is no surplus lines taxes and fees, affidavit, surplus lines brokers license required.  Like a surplus lines placement, SARRG is not under the protection of the NY guaranty fund.  Both admitted and non-admitted companies require a license to do business in New York.  As for insolvency, if SARRG were to become insolvent that would be a problem as claims would go unpaid for policyholders.  But to protect against that, we buy substantial reinsurance from Lloyds of London.  Catastrophic large claims are almost entirely covered by Lloyds leaving SARRG to retain a relatively small retention.
    The per project charge of $250 is in the underwriting guidelines approved by the board, the state of VT and provided to the reinsurers.  The answer to your question below is the agg per project (or location) endorsement is $250 for the first one.  $500 for blanket.  We don't believe that other carriers fully understand the significance of their actions by including it for free. If any alarm company had a track record of multiple substantial losses no carrier would offer this going forward at any price because in effect you are buying your way out of the aggregate limits. 
Bart A. Didden, Executive Claims Manager
Security America Risk Retention Group - SARRG