Berkshire Hathaway GUARD Insurance Companies

Berkshire Hathaway GUARD Insurance Companies
Private
Industry Insurance
Founded Wilkes-Barre, Pennsylvania, United States (1982)
Services Commercial Property and Casualty Insurance
Revenue over $500 million
Website http://www.guard.com/

Berkshire Hathaway GUARD Insurance Companies are A.M. Best rated A+ (“SUPERIOR”) and specialize in providing insurance coverage to small- and mid-sized businesses across the country. Products are available through the independent agents and brokers representing the company. In 2013, Berkshire Hathaway GUARD’s insurance subsidiaries (AmGUARD, EastGUARD, NorGUARD, and WestGUARD Insurance Companies) insured 73,000 businesses.[1]

History

Founding

Susan and Judd Shoval were insurance agents when they founded GUARD Insurance Group in 1982. The Shovals recognized that the market was underserved for small and mid-sized businesses and that there was a place for another workers’ compensation insurance company.

To get the business off the ground, the couple raised money locally from friends and family investors, including a number of the small business owners they’d served as agents.

Growth

For the next 25 years, the business thrived. Judd served as CEO, focusing on building relationships with hundreds of independent agents and brokers, overseeing the ever-growing investment portfolio, and continuing to raise funds, when necessary. Susan acted as President, managing the growth in day-to-day operations, including an employee base that steadily grew under her watch from 15 to more than 200 people. A seasoned executive management team was put into place during that period that became long-term; most of its members are still with Guard today.

As the company grew, GUARD expanded from writing insurance in its home state of Pennsylvania to covering more than 30,000 businesses in 30 states. Payroll processing companies eventually became a large source of business for GUARD; the payroll companies would sell workers’ compensation policies in their portfolio of products to their clients, and deduct the premiums directly from the payroll accounts.

Sale to Clal Insurance Holdings

In 2007, Israeli financial services giant Clal Insurance Holdings offered to purchase GUARD from the Shovals and GUARD’s other investors. Clal used GUARD as its entryway into the US business insurance market, installing experienced insurance executive Sy Foguel as CEO and Avigdor Kaplan as Chairman. Susan Shoval continued as president during a planned three-year transition, and Judd remained on the board as vice-chairman.

Clal injected new capital into GUARD, enabling the company to continue to grow during the financial crisis and quickly thereafter. GUARD also entered into new areas of business insurance, expanding beyond its roots in Workers’ Compensation to other commercial lines.

Sale to Berkshire Hathaway

While GUARD thrived during this difficult period, many financial firms did not. Israel’s financial regulators, who oversee Clal, led Clal to consider selling GUARD. When Warren Buffet’s Berkshire Hathaway came knocking in 2012, both Clal and GUARD’s management knew it was the right fit.

Products

Workers’ Compensation

The company’s flagship product, Workers’ Compensation is written by Berkshire Hathaway GUARD nationwide.[1]

Businessowner’s Policies

Berkshire Hathaway GUARD’s Businessowner’s Policy is currently available in select states throughout the country with plans for expansion into additional states underway. All the major business property and liability coverages are included with the availability of specialized and customizable coverages and increased limits.[2]

Commercial Auto

Berkshire Hathaway GUARD’s Commercial Auto Policy is currently available in a limited number of states along the East Coast with plans for expansion into additional states underway. The policy includes liability, physical damage, and statutory coverages with optional increased limits and a stretch endorsement available.[3]

Commercial Liability Umbrella/Excess

Berkshire Hathaway GUARD’s Commercial Liability Umbrella/Excess Policy is currently available in select states throughout the country with plans for expansion into additional states underway. The product can be attached over a variety of liability coverages.[4]

Community service

Through a group of volunteers called the Special Projects Committee (SPC), employees contribute their money and time, including "work hours," to community-based activities. One example of their accomplishment is participation in the United Way’s “Christmas-in-July” program across a 25-year period; during that time, well over 150 tons of food were donated to kitchens, shelters, and food banks. Berkshire Hathaway GUARD also has a foundation that matches employees' contributions and independently supports select civic organizations and educational institutions.[5]

Trivia

The first building housing Berkshire Hathaway GUARD’s corporate operations is the former Lehigh and Wilkes-Barre Coal Company building in Wilkes-Barre, Pennsylvania. The structure was built in 1908 in an unprecedented speed of 90 days.[6]

In 1995, the company acquired Mutual Fire Insurance Company of Saco, Maine, the second oldest insurer in the United States.[7]

Various Recognition and Rankings

Berkshire Hathaway GUARD was named a Ward’s 50 Top Performer for 2012, a distinction placing the company within the top 2% of all property and casualty insurance companies nationwide.[8]

Selected by Celent, Inc., an international strategy consultancy, to be included as a case study in their Model Carrier Report in January 2007, as a part of their mission to help leading financial institutions sustain a competitive advantage.[9]

Ranked 32nd among all providers of Workers' Compensation insurance in the United States.[10]

Among the top 20 providers of Workers' Compensation insurance in 12 states.[10]

Among the top 10 providers of Workers' Compensation insurance in five states.[10]

Recognized by A.M. Best Company as an e-Fusion Finalist in 2004 — a national awards program which spotlights innovative uses of technology to address insurance business challenges.[11]

Honored in November, 2001 as the #2 Best (Large) Place to Work in PA.[12]

References

  1. ↑ 1.0 1.1 http://www.guard.com/quick_facts.htm
  2. ↑ http://www.guard.com/bop.htm
  3. ↑ http://www.guard.com/auto.htm
  4. ↑ http://www.guard.com/umbrella.htm
  5. ↑ http://www.guard.com/careers/community_service.stm
  6. ↑ http://downtownwilkes-barre.org/new/tour.pdf
  7. ↑ http://www.guard.com/pr/97_AMBest_Excerpts.pdf
  8. ↑ http://www.wardinc.com/wards50/WardGroup-W50-12-PC-Article.pdf
  9. ↑ http://reports.celent.com/reports/celent-model-carrier-2007-case-studies-effective-technology-usage-insurance
  10. ↑ 10.0 10.1 10.2 https://www3.ambest.com/MemberCenter/sMC/Cust_existing.aspx?NP=1&URATINGID=&nextpage=http://www.ambest.com/
  11. ↑ http://www.thefreelibrary.com/A.M.+Best+Co.+Presents+E-Fusion+Award+for+Agent%2FBroker+Management+to...-a0123498405
  12. ↑ http://bestplacestoworkinpa.com/index.php?option=com_content&task=view&id=47&Itemid=58

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