Karen,
Thank you so much for this significant information. We will have our ears
tuned for the further updates.

Pat
----- Original Message -----
From: "Karen W" <tarbaby81@...>
To: "Minnesota Soapers" <MinnesotaSoapers@yahoogroups.com>; "Soap Guild
UpperMidwest" <umsgmemberslist@yahoogroups.com>
Sent: Wednesday, December 21, 2005 6:10 PM
Subject: [UMSGMembersList] For those who have RLI Insurance:


> 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