Crusader Insurance Company Analysis
What is Crusader Insurance Company?
Crusader Insurance Company, incorporated on June 14, 1976, is a wholly owned subsidiary of Unico American Corporation. With over 45 years of experience, the company specializes in providing property and casualty insurance products primarily for small commercial accounts. It underwrites policies through its affiliated agency, Unifax Insurance Systems, Inc. Crusader is known for its commitment to customer service, aiming to provide quotes within 24 hours and issue policies within 72 hours. The company has been rated B++ "Good" by A.M. Best Company, reflecting its financial stability. The vision of Erwin Cheldin, who founded The Cheldin Insurance Agency in 1953, laid the groundwork for Crusader's establishment in 1985. Cary L. Cheldin, Erwin's son, served as President until his retirement in 2020, continuing the legacy of customer service and product innovation.
Employees
11-50
Founded
1976
Industry
Property Insurance
Financial Performance
$35M
Industry Type
Property Insurance
Product Features & Capabilities
- Landlord insurance
- Restaurant insurance
- Nightclub insurance
- Bar insurance
- Gas station insurance
- Tow truck insurance
- Truck insurance
- Commercial property and casualty insurance
- Auto body repair insurance
- Contractor insurance
- Commercial building insurance
- Convenience store insurance
Use Cases
Provide landlord insurance for apartment building owners; Offer restaurant insurance for small dining establishments; Cover nightclub operations with specialized risk assessments; Insure gas station and convenience store retail operations; Protect long-haul truckers with commercial truck insurance; Offer contractor insurance for construction and repair businesses
Impact on Customers
Crusader Insurance Company has entered a conservation phase, meaning it is no longer writing or renewing insurance policies. Customers in California will not have new coverage options or the ability to renew their existing policies. However, the company will continue to honor existing policy coverage and benefits, adjusting and paying claims as long as the policy was in force at the time of the loss and the loss is covered by the policy terms. Customer support remains available through the company’s contact number for inquiries regarding conservation and claims.
Date of Exit Announcement
Crusader Insurance Company effectively left the California insurance market by ceasing to write new insurance policies in September 2021 and discontinuing the renewal of policies in December 2021. However, there is no specific announcement date found regarding their decision to leave California.
Exit Reason
Crusader Insurance Company is not explicitly leaving California, but it has entered a "run-off" phase since September 21, 2021, meaning it is no longer writing or renewing insurance policies. This decision was influenced by significant financial challenges, including a drastic reduction in policyholder surplus from approximately $20 million in March 2022 to about $8 million in March 2023. The decline was attributed to adverse loss developments, increased loss adjustment reserves, and the necessity to sell bond holdings at a loss due to rising interest rates. The company currently has around 350 open claims with case reserves of $23 million, primarily in California, and it is estimated that it will take about 12 months to complete the run-off of the remaining policy claims. These factors indicate a significant shift in the company's operations within California, driven by economic and regulatory pressures.
Other Considerations
Serves small to mid-sized businesses in California; Based in Calabasas, CA; Founded in 1976; Offers specialized niche insurance products; Provides claims support and conservation services
Impact On Customers
Crusader Insurance Company has entered a conservation phase, meaning it is no longer writing or renewing insurance policies. Customers in California will not have new coverage options or the ability to renew their existing policies. However, the company will continue to honor existing policy coverage and benefits, adjusting and paying claims as long as the policy was in force at the time of the loss and the loss is covered by the policy terms. Customer support remains available through the company’s contact number for inquiries regarding conservation and claims.
Exit Announcement Date
Crusader Insurance Company effectively left the California insurance market by ceasing to write new insurance policies in September 2021 and discontinuing the renewal of policies in December 2021. However, there is no specific announcement date found regarding their decision to leave California.
See something that needs updating? Suggest edits to this profile.