Erie Insurance Vs Utica First Insurance: and the battle for your contractor’s insurance!
Erie Insurance versus Utica First Insurance, is a comparison that happens frequently for small contractor’s insurance in both New York and Connecticut.
As an independent agent, I am asked about both insurance companies frequently. Specifically related to contractors since, most my clients are contractors.
How are the two companies similar?
Both Erie, and Utica are regional (think local and smaller) insurance companies focused on specific niches. They are known for providing excellent value and service to their policy holders.
Thus, asking your friends for a recommendation you might find fierce loyalty to both companies.
Both, are unique policies on company specific forms. Which means they are not standardized forms and are unique to the respective insurance company.
Both companies also work exclusively with independent insurance agents to work with you to clarify the company specific forms.
Additionally, each company is rated on the number of employees. Which makes it very easy come audit time. As most other insurance companies rate on either payroll or gross sales.
How are Erie and Utica First different?
Coverage: Additional Insured
Utica First offers a blanket additional insured endorsement, but it excludes additional insured for completed operations. *This typically becomes an issue on commercial projects not usually on residential projects.
Erie Insurance offers additional insured with completed operations but not on a blanket basis. While it is great that Erie includes completed operations, not having an automatic blanket additional insured can be extra work and take more time to get everyone or every entity scheduled on the policy.
Business Size:
Utica First will not insure contractors with greater than 5 full-time employees including all owners.
Erie Insurance prefers small contractors but will insure contractors with up to 15 employees.
Cost:
Utica First is known to be one of the most reasonable insurance companies for contractors.
Erie offers a competitive price for contractors, however Utica usually edges out a lower cost.
Financial Rating: – AM Best
Utica First is an A rated insurance company with approx. $120 Million in reserves to pay claims.
Erie Insurance is an A+ rated insurance company with greater than $2 Billion in reserves for claims.
History
Both Utica and Erie have been around for nearly 100 years, Utica was founded in 1903 and they focus on “Keeping Insurance Simple.” While Erie was founded in 1925.
Fun Fact: Erie and Utica First corporate headquarters are both located in rather rural towns less than 300 miles apart from each other.
Operating Area
Both Utica and Erie are regional insurance companies working only in certain states, unlike a national carrier like Travelers or The Hartford working across the USA.
Utica First operates in New York, Connecticut, New Jersey, Pennsylvania, Ohio, Virginia, Maryland, and Florida.
Erie Insurance Company offers insurance policies in the following states: District of Columbia, Illinois, Indiana, Kentucky, Maryland, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and New York
Bottom Line:
Both Erie and Utica offer a reputable product for small contractors. IF you are keeping score Utica wins price, coverage is a tie, Erie wins on financial rating and operating area. But depending on your exact situation one company may be significantly better than the other.
The short version is, if you have less than 5 employees and work primarily directly for homeowners Utica First is probably your best choice.
However, if you have greater than 5 employees, Erie is the only option of these two. Additionally, if you are working primarily for a General Contractor as a sub-contractor the broad additional insured endorsement from Erie might be required.
***Full Disclosure*** I am not an Erie agent, but I am a Utica First Agent. I took my knowledge from existing Erie policies I have been provided as well as the Erie Insurance Company website. Utica, I do have a more firsthand knowledge, but most information is taking directly from the Utica First website and commercial lines sales guide 5.0 edition.
Please keep in mind, this is just a comparison of these two insurance companies, many insurance companies are available through GRBM. Depending on your unique business Utica or Erie might not be the right fit. We would be happy to discuss with you, to see what insurance company is the right fit for your construction company.
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