Assurant has acquired Protection Point Service Plans Inc., a British Columbia-based provider and administrator of protection programs for commercial equipment, as it expands its commercial equipment business in Canada.
Protection Point specializes in extended service plans and related protection for equipment used in agriculture, construction, material handling and forestry. It already worked exclusively with Assurant in Canada, and Assurant underwrote its programs. Financial terms were not disclosed.
“Protection Point has been an important partner to Assurant for many years, and bringing the business into Assurant is a natural next step in our relationship,” said Paul Cosgrove (pictured), president of Assurant Canada.
Assurant said the deal gives it direct control over distribution, dealer relationships and licensed insurance capabilities in Canada, and creates more room to grow its commercial equipment business. It complements Assurant’s existing commercial equipment operation in the US.
Protection Point handles the full cycle of equipment protection, from recruiting and onboarding dealers, sales and training to customer support, claims intake and administration, enrolment, contract administration, and premium and remittance management.
Federico Bunge, Assurant’s president of international, said Protection Point brings specialized market knowledge, established dealer and manufacturer relationships and proven sales capability. Ian Young, Protection Point’s former president, said joining Assurant builds on the companies’ long partnership.
The acquisition follows a familiar pattern in specialty insurance: a carrier buying the administrator or managing general agent that already distributes its products. That gives the insurer direct access to the dealer relationships and customer data that drive the business, and a larger share of the economics.
Commercial equipment protection is sold mostly through equipment dealers at the point of sale, alongside financing. Extended service plans cover the cost of repairing mechanical and electrical breakdowns after the manufacturer’s warranty ends. Farm, construction and forestry machinery is expensive to fix, and downtime is costly, which makes these plans attractive to owners.
For commercial brokers with agricultural, construction and forestry clients, extended service plans sit alongside the equipment and inland marine cover they place, but they’re usually bought from the dealer when the machine is purchased. Brokers reviewing a client’s equipment program should check what service plans are already in place, so clients understand where the dealer-sold breakdown cover ends and their own property and equipment insurance begins.
