Insurance giant moves into HME

VIENNA, Va. - The Hanover Insurance Group has taken dead aim on the HME industry.

The $2.7-billion publicly traded company is one of the  largest property and casualty insurers in the United States, and last month it acquired the Campania Group, which since 1992 has specialized in providing professional and general liability insurance to HME providers.

"They don't have any presence in healthcare liability right now, and they are going to use us as a platform," said Dennis Santoli, Campania's founder and president. "They have committed to me that they will keep this (HME) line of business going and want to expand to offer even broader coverage than we can currently provide."

Campania also provides insurance to long-term care facilities, assisted living facilities, behavioral health hospitals and rehabilitation hospitals.

As part of the deal, Santoli will remain with the company for at least three years and all of his 40 employees have been offered continued employment.

Campania's annual sales total about $25 million, with about $8 million of that coming from HME. Hanover offers Campania "incredible enhancements."

"We'll be able to do umbrella coverages," Santoli said. "We'll be able to do all of the things that right now we cannot do."

Those new offerings include "property, auto, workers' comp--all that stuff," he said.

Additionally, Hanover's A rating means Campania can now go after business that previously was off limits.

 "Most HME dealers, I think, would be very happy with our coverage, but if their landlord says they must have coverage from an A-rated carrier, because we are B rated, they couldn't use us even if they wanted to," Santoli said.