NEWS from First Fidelity Brokerage

Press Contact:              Judd Cohen

                                    Cohen Communications

                                    212-682-7838

                                     judd@cohencom.net

 

Insurance Carrier Downgrade

Creates Concern for Businesses & Property Owners

First Fidelity Brokerage alerts all New York City businesses and property owners and managers as well as co-op and condominium boards to immediately review their insurance policies to see if they include coverage from member companies of Tower Group.  AM Best Co. has just downgraded the financial strength rating of Tower Group International to B++ (Good) from A- (Excellent), a rating level that does not meet most lender requirements. AM Best is the leading credit rating organization dedicated to serving the insurance industry.

“This could have a significant impact for those businesses and property owners who have outstanding loans and have their insurance coverage provided by Tower,” says Eugene P. Podokshik, President and CEO of First Fidelity Brokerage, a leading New York City property and casualty insurance broker.

“Lenders have strict guidelines for insurance coverage and the downgrade could put the loans in default, and some lenders may also try to use this to get out of bad loans,” Podokshik says. “In most cases, the policies will just need to have their coverage replaced with a carrier that has an AM Best rating of A- or better.”

He urged property managers, boards and landlords whose current premiums with Tower are in excess of $50,000 to contact him to discuss their options. Podokshik can be reached at 212-933-9050 ext. 1801 or at epod@ffbinsurance.com

 

Tower Group Companies affected:

• CastlePoint Insurance Company

• CastlePoint National Insurance Company

• Tower Insurance Company of New York

• Tower National Insurance Company

• Preserver Insurance Company

• North East Insurance Company

• Hermitage Insurance Company

• CastlePoint Florida Insurance Company

• Kodiak Insurance Company

• York Insurance Company of Maine

• Massachusetts Homeland Insurance Company

 

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