Exclusive: Baseline launches inaugural product with E&S property DIC quake program

By Chris Munro

July 2 - (The Insurer) - Baseline Risk Partners has brought its first product to market, with the San Diego, California-based startup program administrator launching an E&S property difference in conditions (DIC) earthquake coverage.

The new program, which has been spearheaded by Walter Salas, went live on July 1 with coverage written on the paper of an AM Best A-minus rated surplus lines carrier.

Baseline’s inaugural program provides comprehensive coverage for earthquake, earth movement, earthquake sprinkler leakage and flood exposures.

It offers primary, excess and quota share layers, with capacity available of up to $10 million.

The program’s geographic footprint initially includes California, Washington, Oregon and Utah.

Deductibles begin at 5% in California and 2% in other states.

The program is targeted at risks including real estate schedules, habitational properties, homeowners’ associations, manufacturing operations and construction/builder’s risk.

The new program will consider all years of construction, but its preferred appetite is for structures built in 1950 or later.

As previously reported, Baseline was launched last year by president and CEO Andrew Petersen alongside co-founder and chief operating officer Ryan Clarkson.

Prior to launching Baseline, Petersen was an executive vice president and regional president at Paragon Insurance Holdings, where he founded and managed its workers’ comp division.

At the time of Petersen’s departure, workers’ comp was Paragon’s largest organically grown division.

Before working on Baseline, Clarkson was chief information officer at Arthur J Gallagher-owned Risk Placement Services, where he helped to scale the business into a $2 billion wholesale and MGA platform.

Clarkson’s career also includes more than seven years at Atlas General Insurance Services, where he latterly served as COO.

The new PA E&S property DIC earthquake coverage is expected to be the first of two or three surplus lines programs that Baseline offers alongside what will be its main admitted workers’ compensation focus.

Talking to Program Manager earlier this year, Petersen explained that with workers’ comp being such a highly regulated class, securing the licenses and infrastructure necessary to service the business can take time, and the E&S programs will provide diversified sources of income to the PA.

Baseline has targeted going live with its first workers’ comp offering in the company’s native California early next year.