Why is Fireman’s Fund Insurance Companies the nation’s largest Inland Marine underwriter? Why? Certainly this didn’t "just happen." Frankly, there are many reasons for The Fund’s preeminence in this field – sound reasons – some of which you’ll glimpse in a run-down on this vital and versatile form of insurance.

Only forty-one years ago this line of insurance came into being with a designation intended to describe domestic inland shipments, which previously had been insured by ocean marine underwriters. But Inland Marine has long been out of its swaddling clothes. After a fabulous history of growth, during which The Fund earned the No. 1 spot, Inland Marine became a major line of insurance. Here may be found the stimulant for the increasing trend towards broad form property insurance protection, for it is in this field that the term "all risks" on location exposures became commonplace.

Today, more than 300 classes are available under The Fund’s Inland Marine banner – insurance that is the broadest possible coverage; that often provides service that no other line of insurance can offer; that applies to a vast market; that is simplicity itself; that opens doors to an excellent class of clients; and that, for the hustler, brings very good commissions because premiums are usually substantial. Many classes, of course, are applicable to everyday risks. Of the 300 classes available, in fact, probably more than 250 of them can be utilized in towns of almost any size, anywhere.

Most readers know, of course, that many policies are subject to the rate filing requirements of the various insurance codes. While too numerous to mention, they embrace coverage on bridges, tunnels, various dealers in merchandise, farm machinery, items of personal property owned by individuals, and many others described in your Fireman’s Fund Marine Pocket Guide and the Inland Marine Insurance Bureau Manual. But the classes not subject to rate filing, due to their unadaptability to uniform treatment, are the ones that offer the best sales opportunity. Fireman’s Fund takes pride in the fact that 69.3% of its business falls in this category as opposed to the industry figure of 59.6%. It is here that imagination and know-how can be demonstrated and that you can give your clients one more reason why they need a professional insurance counselor. These policies are not available at store counters to be sold like any other form of merchandise, nor will they ever be sold in this manner. This is why less than 5% of the Inland Marine premium is sold by direct writers, and on the non-filed classes the percentage is infinitesimal. In many instances policies are individually tailored to meet the needs of the client with the premium based upon the exposures of that particular risk.

A few of the unusual risks:

In Boston: The Fund found that the old adage, "You can’t make a silk purse out of a sow’s ear," was completely false. In fact, The Fund recently issued a policy for the renowned research organization, Arthur D. Little, Inc., of Cambridge, Massachusetts, on "one silk purse made from pigs’ ears." The purse, incidentally, had insurance value of $10,000. Last year The Fund literally "raised the roof" in New England, or helped do so. How? By writing a policy for an engineering firm for its liability in raising the roof of a one-story building to permit the addition of two more floors. To complicate matters, there was only one-quarter inch clearance between the roof, which measured 100 x 175 feet, and the adjoining building. The great roof was raised by the ingenious use of 32 electrically operated jacks controlled by one man operating an electrical console! And what an organist he was! Not one false note! One of the most unusual risks in the Fine Arts category was an ancient armonica, a musical instrument made largely of glass and invented by Benjamin Franklin.

In New York: Under a Fine Arts policy, The Fund covers a Gutenberg Bible valued at $500,000 and a Columbus letter written in 1493 and valued at $300,000. The Fund insures an art gallery where the right arm of a cast iron statuette of Aphrodite broke off, allegedly due to vandalism – although the statuette weighed 900 pounds! The famous Rembrandt painting, "Aristotle Contemplating the Bust of Homer," was purchased by the Metropolitan Museum of Art, in whose insurance The Fund participates. But there came the question of insuring the masterpiece while in transit to the Museum. The Fund participated in that, too. Since the painting was too large to ship by armored car, it went by moving van accompanied by four armed guards. Insurance on it: $2,300,000. It arrived safely.

In Chicago: Several years ago The Fund was called upon to provide a Valuable Papers coverage in the amount of $1,000,000 covering the top brewing formula for one of the large Midwestern breweries. The Fund also insured for the Mutual Broadcasting Company, a subsidiary of Minneapolis Mining, their down-range television equipment used for covering the landing of the "Friendship 7." The equipment was on lease to the television pool responsible for the coverage.

In Atlanta: Recently The Fund issued a short-term Fine Arts policy on a letter written by George Washington to Martha Washington. The letter was dated June 23, 1774, with the date notation in Mrs. Washington’s handwriting on the cover. Since Martha Washington destroyed most correspondence with her husband, this letter is of the utmost importance, rarity and interest. Also, the contents of the letter express an affection and warmth which is far different from Washington’s customary reserve. Valuation: $100,000. In this section of the country, many people in rural areas build private lakes, scientifically stocking them with fish and charging admission for fishing privileges. One of the problems, however, is that it requires about two years for a new lake to grow fish of sufficient size to interest the customers. Therefore, The Fund has written policies covering physical loss or damage to the dams themselves, and, in addition, covering the delayed opening Use and Occupancy insurance. In other words, if the dam suffers a loss which also causes a loss of the growing fish, the lost time on anticipated profits is made whole by the policy.

In Dallas: In an attempt to obtain economical storage space, a number of oil and gas companies in the Southwest have come up with an ingenious solution. They find a large salt dome beneath the surface of the earth, sink a small shaft through the cap rock down into the salt and pump in fresh water which dissolves the salt and leaches a cavity. Repeated applications give a very substantial underground cavern or "jug well" and these jug wells are used for the storage of liquid petroleum gases. Whenever they want to get the gas out, they simply pump in brine and force the gas out; sometimes when they want to make the cavern bigger, they use fresh water. The Fund participates in insurance covering both the contents and the caverns themselves. Several of these same companies have also mined caverns in certain shale formations in the Midwest for a storage of LPG, and The Fund participates in this coverage, as well.

One of The Fund’s insureds is a manufacturer of electronic equipment, and one of its biggest customers is Norad (North American Air Defense Command). Within the recesses of the huge cavern being created at Colorado Springs is several million dollars worth of electronic computing machinery insured by The Fund while under lease to Uncle Sam. In a well-known vacation city of Arkansas bubbles a spring which has been flowing for many years. Its water is of widely known quality, and much of it is bottled and sold. Should the flow be stopped by earthquake or certain other named perils, the spring owners will not have to worry; they have a policy with The Fund covering such a dire contingency.

In Seattle: Here a policy is written, covering a unique and startling collection of "mystico-nuclear" and "classical religious" jeweled sculptures designed by the equally fabulous Salvador Dali. This collection, valued at several hundred thousand dollars, is one of a kind, owned by a foundation that exhibits the items in this country and abroad. The problem of insuring such unusual property with its wide variety of exposures to loss was eagerly assumed by Inland Marine underwriters of Fireman’s Fund, who responded with a floater policy covering the property in all situations. While the policy’s ultimate result may not appear sensational, its actual formulation required experience, daring, flexibility and confidence, the foundation of The Fund’s Inland Marine underwriting. The Fund has insured a famous collection of the late Sydney Lawrence’s Alaskan paintings. Lawrence was recognized as the outstanding artist of Alaska.

In San Francisco: In offering its services, Fireman’s Fund has facilitated a sale of $62 million worth of bonds, thus aiding the economic growth of California. Water, a lot of it, serves as a backdrop. Here’s how: The Oroville-Wyandotte Irrigation District of the South Fork project is one which contemplates the use of water from the South Fork of the Feather River in California for the development of hydro-electric power, irrigation and domestic purposes. The District authorized the issuance of that substantial bond issue, bonds that will be payable as to both principal and interest from revenues from a power-purchase contract with Pacific Gas and Electric Company.

As lead and negotiating company, Fireman’s Fund has offered, through its Inland Marine facilities, insurance against loss of revenues, provided such loss arises from either inadequacy of water available for storage, or, under certain circumstances, direct physical loss or damage to the project. The people of the State of California will be eventual beneficiaries, and The Fund cheers that happy circumstance. To many, the lowly raisin may not seem important. However, the annual income from this one crop approximates $40,000,000, indicating that, collectively, raisins are important. The creation of a raisin from a growing grape is relatively simple and an ancient process, but despite the farmers’ technological advances, sun-drying remains the best way to do the job. Still, a peril is ever lurking – rain – a peril that brought the industry an $8,000,000 loss in 1958. Coverage developed by Inland Marine underwriters of Fireman’s Fund was specifically arranged to the requirements of this important industry, which centers in a 50-mile area in the heart of California. Now the industry can pursue its marketing practices with the knowledge and confidence that it is financially protected.

In Los Angeles: The fabulous land of Southern California has called for fabulous inland Marine coverages. For instance, The Fund insured: A band of chimpanzees for MGM, chimps that refused to come down from a palm tree until sufficiently urged by a prop man; rare kissing fish that, for survival, required water of a constant and exact temperature, which was supplied in thermos bottles held in the lap of a livened chauffeur on their trip from their owner’s Pasadena home to the 20th Century-Fox Studios; a pair of Charlie Chaplin’s shoes, which, valued at $2,500 each, was displayed in a downtown window of the May Company.

A buffalo herd on Santa Catalina Island; the longest single span freight tramway in the world, stretching from a tremendous Grand Canyon bat cave to the south rim of the canyon, a distance of 8,377 feet; construction of the new Dodger Stadium in Chavez Ravine; the contractors equipment for Morrison-Knudsen, the world’s largest contractor; mounted butterflies; mobile TV buses for Red Skelton; a man-made island for the Monterey Oil Company, off Seal Beach, California.

And, of course, the Los Angeles office issues its widely publicized Cast Insurance, already written up in The Saturday Evening Post, Time, TV Guide and other national publications. The biggest stars of filmland and TV have been covered under this program. And so goes the flexibility of Inland Marine. Examples could be endless.

Inland Marine underwriters are constantly seeking ways and means to improve their policies. Named peril policies are gradually becoming a thing of the past, although you’ll still hear of some agents who succeed in obtaining accounts due to the existence of the old-fashioned named perils contracts. Numerous extensions have been made available, such as Extra Expense endorsements on equipment and Business Interruption coverages on radio towers. The latter coverage is usually included in a comprehensive Radio and Television Station floater to which is added the Libel and Slander policy, explained elsewhere in this issue. Quite often the availability of Libel and Slander is the main reason an agent representing The Fund ends up with the business.

Definite improvements have been made in many of the other classes in recent years, including among others the continually growing Motor Truck Cargo, Installation and Installment Sales classifications. More important than these changes, however, is the ready willingness of The Fund’s Inland Marine underwriters to tailor their policies to meet the insured’s needs. Many aggressive producers have used The Fund’s Inland Marine facilities as entering wedges to substantial accounts. And, finally, these facilities have prompted many top-ranking professional agencies to seek group representation with Fireman’s Fund.

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