Am cross-posting here--

If you haven't already heard, be advised that RLI insurance is dropping
their personal care product liability (PCPL) insurance IF you have over
$5,000 gross sales per year. If you're under $5k, they'll still cover
you. Here are the details:

Subject: RE: RLI & Product Liability Coverage Restriction

From: Bomba Insurance Agency, Inc.
To: In-Home Handcrafted Perosnal Care Products Makers

It has come to my attention from RLI (just last week) and now dailey
in the form of numerous "rumor" e-mails, that RLI is not selling/honoring
"Product Liability" on the numerous Policies that they have issued,
through our office, as well as other Agencies. This is not ALL true.

What they are stating, in a nutshell, is that "when" a
Soapmaker/Personal Care Products Manufacturer's gross annual receipts
exceed $5,000 annually, then the "PRODUCT LIABILITY" coverage will be
excluded.

As you all are aware, as we are, "Product Liability" for after the
sale is the primary coverage you "want" to have. I have been in
discussions with RLI on this and they are unable/unwilling to budge.
Their primary conceris that although many policies are being sold, there
is not enough premium
collected to allow enough of a "claim reserve" in case of large claims.

The fact is that a single large, batch of "bad" product could affect
"many" people and strain the Company's ability to continue this and it's
other 100+ classes of customers that they write coverage for.

This change, for current customers, will affect their insurance as
they renew, as of February 1, 2006. If your Policy has already renewed or
is set to renew prior to February 2006, then this restriction will not go
into affect, until your next renewal. It will also affect all "new"
policies as of January 1, 2006. We have stated a case, that there had not
been much lead time on this and we are being told that the effective date
of this "limitation", for RENEWAL POLICIES "might" be extended to March
1, 2006. That will be known within the next day or two and we will keep
you in touch.

At Bomba Insurance Agency, Inc. we are not "sitting around" for this
to happen, but we are researching alternate Insurance Companies, in case
we should need to move our customers and/or serve new customers needs.

We promise to keep you ALL informed as progress is made.

Sincerely,
Kenneth Bomba
Bomba Insurance Agency, Inc.
760-724-8816
BombaIns@...
License# 0572720



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