Have Questions about Working with a Managing General Insurance Company?

Managing general agency companies (MGAs) are different from wholesale brokers in that MGAs have binding authority or “the pen” for a carrier, whereas wholesale brokers function as more of an intermediary between the carrier and the local retail agent.

With a managing general agency company, underwriting decisions are usually made by the MGA using their power of the pen, which makes the underwriting process quicker and more efficient. At Stroud National Agency, Inc., we pride ourselves on being an MGA, but we can also be considered a wholesale broker in some of our carrier relationships.

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .

Managing general agency companies (MGAs) are different from wholesale brokers in that MGAs have binding authority or “the pen” for a carrier, whereas wholesale brokers function as more of an intermediary between the carrier and the local retail agent.

With a managing general agency company, underwriting decisions are usually made by the MGA using their power of the pen, which makes the underwriting process quicker and more efficient. At Stroud National Agency, Inc., we pride ourselves on being an MGA, but we can also be considered a wholesale broker in some of our carrier relationships.

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .

The key difference between a managing general agency (MGA) and a general agency (GA) lies in the scope of authority and responsibilities they have within the insurance distribution chain.

An MGA operates with delegated authority from an insurance carrier. This means they can perform tasks typically handled by the insurer, particularly with regard to underwriting decisions, policy issuance, and the binding of coverage.

In general, a managing general agency company acts as intermediaries between insurers and local retail agents, helping insurers expand into new markets without needing to establish a full operational presence.

MGAs also provide local retail insurance agents access to specialized insurance markets that they might not be able to access otherwise. When agents work with an MGA, they typically have more direct access to the underwriters making decisions regarding their clients and can receive more specialized guidance on requirements and navigating the underwriting process.

On the other hand, general agencies (GAs) are more limited in scope. They primarily focus on sales and distribution of insurance products. They work with agents and brokers to market and sell policies, but do not have underwriting authority (“the power of the pen”).

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .

A managing general agency company like Stroud National Agency, Inc. can help independent insurance agents gain access to carrier markets to which they may not otherwise have access.

Managing general agency companies  also often have access to several markets and can help independent agents easily provide multiple options for their clients to consider without the agent needing to interact with the carriers individually.

In addition, working with an MGA keeps the underwriting process more accessible to the agent in the field, rather than forcing agents to compete with larger numbers of other agents for access to the same carrier underwriting resources.

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .

To see which staff members handle specific responsibilities and lines of business, please consult our Meet the Staff page, https://www.stroudga.com/about-us/meet-the-staff/ .

Both of these pages have links to our Contact Us page, https://www.stroudga.com/contact-us/ , which will allow you to send a message to a specific member of staff. You can also contact them by phone at 800-654-4056.

If you have a general query, you can submit the query from the Contact Us page, with “General Inquiry” selected.

documentation such as policies, ID cards, renewal information, etc. with the expectation that the agents will forward the information to their insureds in a prompt manner.

If you are an insured who hasn’t received documentation or needs documentation to be resent to you, please contact your local agent.

If you have repeated difficulty in communicating with your agent or receiving requested documentation, please contact us so that we can look into the matter further.

If you are a policy holder, please contact your local agent and ask them to send Stroud National Agency, Inc. a written endorsement request.

If you are an agent, please submit a detailed endorsement request to forms@stroudga.com.

If additional documentation is needed, the Underwriter who reviews the endorsement request will reach out to you.

Premium payment specifics can vary greatly depending on whether the situation involves a new application, a renewing policy, a policy in need of reinstatement, etc. Premium payment specifics also vary based on the specific carrier involved. For assistance, please contact us. Please provide as much information as possible (insured name, policy number, status, etc.) so that we can best assist you.

For carrier Billing contact information, please visit our Carrier Partners page, https://www.stroudga.com/partners/.

As a managing general agency company that has served the insurance needs of American farmers and ranchers for 60+ years, we understand the importance of providing insurance options to people who live in rural areas more removed from fire department resources.

We can normally consider for coverage risks in areas with a Protection Class (PC) 10 fire protection classification. This is subject to there being a satisfactory ag exposure on the property, an acceptable fireline score, good loss history, and all the requirements needed to complete the normal underwriting process.

These same requirements would be necessary for risks in areas with better fire protection classifications as well.

Having an agricultural (ag) exposure is crucial for qualifying for a farm and ranch insurance policy because these policies are specifically designed to address the unique risks and needs associated with agricultural operations.

Ag exposure refers to activities or assets tied to farming or ranching, such as crop production, livestock, equipment, or farm structures.

Without ag exposure, a property might not meet the criteria for this specialized coverage, as it would lack the operational risks that farm and ranch insurance is meant to protect. For example, these policies often cover things like machinery breakdowns, liability from farm-related activities, etc.—risks that wouldn’t apply to a standard residential property.

With larger agricultural operations, it is often clear what the ag exposure is on the property. However, many Americans enjoy living on land in more rural areas without necessarily depending on farming or ranching for their economic wellbeing.

Those “hobby farms” are typically in appetite for us as long as there is an ag exposure on the property. Examples of ag exposure might include, but aren’t limited to, owning horses, cows, or goats; raising crops such as hay; or leasing land to a third party that has that has that exposure.

A barndominium is a type of residential building that combines a barn-like structure with the comforts of a modern home. It’s a blend of “barn” and “condominium” in concept, though it isn’t a traditional condo. These structures typically use steel or metal frames for durability and are designed for versatility.

Barndos are popular for their open floor plans, cost-efficiency, and rustic charm. People often choose them for rural living, as vacation homes, or even as multifunctional spaces combining living quarters with workshops, garages, or stables.

From an insurance perspective, a dwelling typically refers to a residential structure designed for living, such as a traditional house. It includes the main building and any attached structures like garages or decks. Dwelling insurance covers the physical structure against risks like fire, storms, or vandalism.

The key difference between a barndo and a normal dwelling lies in the design and use: a normal dwelling is solely residential, while a barndo blends residential and functional spaces, requiring special considerations and tailored coverage to account for the mixed-use nature of the space.

Yes, we can typically consider barndos for coverage.

A few factors determine if we can rate a building as a dwelling or as a barndo. If the square footage of the living space is 50% or greater of the total square footage of the building, we can generally rate as a dwelling.  However, it’s also important to know what is stored/kept in the barndo section.

If hay or feed is stored in the building, the building has to be rated as an outbuilding, regardless of the square footage dedicated to living space.

In addition, it’s important to know if there is a firewall separating the living space from the rest of the building.

If the building is rated as a barndo, a cosmetic damage exclusion will apply and contents will be listed separately.

Yes, we can write secondary dwellings as long as the primary residence is on the same Stroud policy, there is a farm exposure at the location of the secondary dwelling, and the secondary dwelling is occupied at least bi-weekly.

If you have any additional questions, please contact us.

While both farm and ranch insurance and homeowner’s insurance provide coverage for your home and personal property, there are significant differences between the two. Homeowners insurance typically covers your home, its contents, and personal liability. However, it does not extend to farm or ranch operations, equipment, or livestock.

On the other hand, farm and ranch insurance offers a broader scope of protection. It covers not only your home and personal property but also farm equipment, tools, irrigation systems, harvested crops, and farm structures. Additionally, it includes liability coverage specific to farm operations.

For those involved in farming or ranching, farm and ranch insurance is essential to ensure comprehensive protection for both personal and commercial risks.

You can learn more about the differences between farm and ranch insurance and homeowner’s insurance at https://www.travelers.com/resources/business-industries/agribusiness/farm-and-ranch-insurance-vs-homeowners-insurance.

For more information about our farm and ranch insurance offering, please check out our Products page, https://www.stroudga.com/products/.

We are willing to consider dwellings worth $1 million or more as part of a farm and ranch policy.

Approval is subject to normal underwriting review. In particular, a central alarm with notifications for detection of fire, smoke, heat, water leaks, freeze, burglary, and panic must already be installed at the time of Underwriting review or be installed in a timely manner.

In addition, we will need to have in our files a copy of the central alarm certificate showing that they are monitored and evidence that the necessary sensors have been installed.

No, we do not offer an umbrella policy that would sit on top of farm and farm auto policies from other carriers.

We do offer an excess policy that would only sit on top of Travelers or Liberty Mutual farm and farm auto policies written through Stroud National Agency, Inc., but not policies from other carriers.

Please note that we can’t write farm excess on a standalone basis; we would need to also have the underlying farm policy under the same carrier as well.

Stroud National Agency, Inc. does work with a monoline workers’ compensation, Accident Insurance Company (AIC), that has an appetite for ag risks that don’t utilize H2A employees (foreign ag workers). Depending on the state in which the operation is located, we may be able to help.

For additional information on our farm workers’ comp offering, please check out: https://www.stroudga.com/new-partnership-on-workers-comp-farm-workers-comp/.

If you have questions, please contact us.

Yes, our farm and ranch insurance policies can provide coverage for solar panels. This includes standalone solar panels installed on the property as well as solar panels mounted on roofs.

Solar panels are an increasingly popular investment for farms and ranches, as they help reduce energy costs and promote sustainability. In addition, solar panels offer a valuable layer of self-reliance for farm and ranch operations, particularly in areas prone to power outages or inconsistent energy supply. By generating their own electricity, property owners can maintain critical functions, such as irrigation systems, climate control for livestock, or the operation of essential machinery, even during disruptions to the power grid.

Coverage typically protects against risks such as damage caused by fire, wind, hail, or other covered perils under the policy. However, it’s important to review the specific terms and conditions of your policy, as coverage may vary depending on factors such as the location and use of the panels.

The classification of farm and ranch outbuildings into Type 1, Type 2, and Type 3 reflects their construction, condition, and usage characteristics, which determine their eligibility for different levels of coverage.

Type 1 Outbuildings These are the highest-quality structures with superior characteristics and excellent maintenance. They must have a continuous foundation made of mortared masonry or concrete under all exterior walls (or the two longest walls in granaries or corncribs). Buildings framed on poles of minimum six-inch diameter at ground line, set a minimum of four feet below ground level, may be considered as acceptable when the poles have been pressure treated with wood preservative. Flooring must be incombustible throughout and no hay or straw storage is allowed.

Type 1 buildings are fully enclosed without any attached open sheds and are no taller than 26 feet. Grain storage structures may be considered as complying with these requirements when such structures are of all metal construction (tanks, bins and quonsets), are securely bolted on continuous mortared masonry or concrete foundation and are used exclusively for bulk storage of grain.

Type 2 Outbuildings: These buildings have better-than-average construction and maintenance but don’t quite meet Type 1 standards.

Like Type 1, Type 2 buildings must have a continuous foundation made of mortared masonry or concrete under all exterior walls (or the two longest walls in granaries or corncribs). Buildings framed on poles of minimum six-inch diameter at ground line, set a minimum of four feet below ground level, may be considered as acceptable when the poles have been pressure treated with wood preservative.

Type 2 buildings must be fully enclosed, although open sheds may be allowed for an additional premium. Hay or straw storage is permitted in Type 2 buildings, and all-metal or steel grain bins with dryers that don’t meet Type 1 requirements fall under the Type 2 category.

Type 3 Outbuildings Type 3 buildings are typically more specialized or less robust than Type 1 or Type 2 structures. Any outbuilding that doesn’t meet the requirements for Type 1 or Type 2 is classified as Type 3.

This includes structures occupied or constructed for crop drying, grain grinding, seed grain cleaning and drying, alfalfa or hay chopping; private greenhouses and portable buildings and structures.

No, our farm and ranch carriers do not include foundation coverage in their policies.

Foundation damage is often caused by gradual issues like settling, wear and tear, or poor construction—factors that are not considered “sudden and accidental” events. Insurance policies typically cover unexpected perils such as fires, windstorms, or vandalism, but exclude damage caused by long-term deterioration.

Proactive remediation of foundation issues remains the property owner’s responsibility unless linked to a covered peril.

Farm and ranch insurance policies categorize coverage into Basic, Broad, and Special perils, similar to homeowner’s insurance. However, unlike homeowner’s insurance, farm and ranch policies extend coverage to agricultural-specific property and risks, such as farm machinery, silos, fencing, barns, and outbuildings. Additionally, unique perils like damage caused by the weight of snow on farm structures may be included under Broad or Special coverage options.

Peril types:

Basic Perils: Provides coverage for explicitly named risks. It is the least comprehensive option. The perils typically included in the basic form are:

• Fire
• Lightning
• Explosion
• Windstorm or Hail
• Smoke
• Aircraft or Vehicles
• Riot or Civil Commotion
• Vandalism
• Sprinkler Leakage
• Sinkhole Collapse
• Volcanic Activity

 

Broad Perils: Includes all Basic perils and expands coverage to additional named risks, like falling objects, weight of ice or snow, and freezing plumbing. Perils typically included in the broad form are:

• Fire
• Lightning
• Windstorm or Hail
• Explosion
• Smoke
• Vandalism
• Aircraft or Vehicles
• Riot or Civil Commotion
• Sinkhole Collapse
• Volcanic Activity
• Sprinkler Leakage
• Burglary/Break-in
• Falling Objects
• Weight of Ice, Snow or Sleet
• Water Damage
• Collapse

 

Special Perils: Offers the most comprehensive coverage, insuring against all risks except those explicitly excluded, such as floods, neglect, or war. Some of the perils typically excluded under the Special form are:

• Ordinance of Law
• Earthquake
• Flood
• Power Failure
• Neglect
• War
• Nuclear Hazard
• Intentional Acts

On a Stroud farm and ranch policy, the difference between Replacement Cost (RC) and Actual Cash Value (ACV) coverage is an important factor to consider when protecting your property.

Replacement Cost (RC) coverage is typically defined as the cost to replace damaged property with materials of like kind and quality, without any deduction for depreciation. This means RC coverage aims to restore the property to its original condition as new.

On the other hand, Actual Cash Value (ACV) coverage factors in depreciation. It is calculated as the replacement cost of the property at the time of loss, minus any depreciation that has occurred due to factors like age, wear, and tear. ACV reflects the current market value of the property rather than its original value when new.

When given the opportunity to choose between RC and ACV, insurance agents help their farm and ranch clients understand the coverage type that best fits the clients’ needs and priorities. If maintaining the full value of farm and ranch assets is critical, RC coverage may be the better choice. If affordability is a priority, ACV coverage might make sense. Our team is here to insurance agents evaluate these options and tailor a policy that works best for their clients’ specific needs.

While managing general agency companies like Stroud National Agency, Inc. do operate in the insurance industry, they are not the same as local insurance agencies.

Local insurance agencies interact directly with clients in their local communities and help those customers to obtain the best insurance they can. Some local insurance agencies are “captive”, meaning they are contracted to only work with a specific insurance carrier, while others are “independent”, meaning they can be contracted with numerous insurance carriers and managing general agencies and have the freedom to shop their clients’ insurance with several carriers in order to provide the best possible solution.

A managing general agency company comes into the picture as a resource for both independent insurance agents and insurance carriers.

For independent agents, MGAs provide access to additional carrier markets to which those agents might not otherwise have access. They also have years of experience operating in the specialized lines of business they handle and can use their knowledge, skills, and relationships to guide the agents with whom they work.

From the perspective of carriers, a managing general agency company serves as a force multiplier. Carriers contract with MGAs in order to gain access to the independent insurance agents those MGAs work with.

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .

Managing general agency companies (MGAs) are different from wholesale brokers in that MGAs have binding authority or “the pen” for a carrier, whereas wholesale brokers function as more of an intermediary between the carrier and the local retail agent.

With a managing general agency company, underwriting decisions are usually made by the MGA using their power of the pen, which makes the underwriting process quicker and more efficient. At Stroud National Agency, Inc., we pride ourselves on being an MGA, but we can also be considered a wholesale broker in some of our carrier relationships.

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .

Managing general agency companies (MGAs) are different from wholesale brokers in that MGAs have binding authority or “the pen” for a carrier, whereas wholesale brokers function as more of an intermediary between the carrier and the local retail agent.

With a managing general agency company, underwriting decisions are usually made by the MGA using their power of the pen, which makes the underwriting process quicker and more efficient. At Stroud National Agency, Inc., we pride ourselves on being an MGA, but we can also be considered a wholesale broker in some of our carrier relationships.

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .

The key difference between a managing general agency (MGA) and a general agency (GA) lies in the scope of authority and responsibilities they have within the insurance distribution chain.

An MGA operates with delegated authority from an insurance carrier. This means they can perform tasks typically handled by the insurer, particularly with regard to underwriting decisions, policy issuance, and the binding of coverage.

In general, a managing general agency company acts as intermediaries between insurers and local retail agents, helping insurers expand into new markets without needing to establish a full operational presence.

MGAs also provide local retail insurance agents access to specialized insurance markets that they might not be able to access otherwise. When agents work with an MGA, they typically have more direct access to the underwriters making decisions regarding their clients and can receive more specialized guidance on requirements and navigating the underwriting process.

On the other hand, general agencies (GAs) are more limited in scope. They primarily focus on sales and distribution of insurance products. They work with agents and brokers to market and sell policies, but do not have underwriting authority (“the power of the pen”).

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .

A managing general agency company like Stroud National Agency, Inc. can help independent insurance agents gain access to carrier markets to which they may not otherwise have access.

Managing general agency companies  also often have access to several markets and can help independent agents easily provide multiple options for their clients to consider without the agent needing to interact with the carriers individually.

In addition, working with an MGA keeps the underwriting process more accessible to the agent in the field, rather than forcing agents to compete with larger numbers of other agents for access to the same carrier underwriting resources.

For more information about the benefits of working with Stroud National Agency, Inc., please visit: https://www.stroudga.com/about-us/why-stroud/ .