When Rick Lindsey was a young insurance agent, he was frequently frustrated with the lack of flexibility and creativity in the insurance products he was able to sell, and the rigidity and risk-averse nature of the insurance companies he worked with. 

“If you wanted to cover Evel Knievel jumping over the Snake River you had to call Lloyds of London,” he said. It also bothered him that companies were so quick to settle when facing possible lawsuits – even when they were in the right. 

It all added up to Lindsey wanting to take a different approach. Today, Lindsey runs Prime Insurance Company, based in Sandy, Utah, and he has been able to make his vision a reality.  

The company now has 160 employees and does business nationwide. And the results have been impressive. Prime now does $174.5 million in business and in 2018 had a combined loss and expense ratio of 77.6 percent, performing 26.3 points better than its peer average of 103.8 percent. A combined ratio under 100% indicates excellent performance and high profitability. 

Prime has become an innovator and industry disruptor, covering niches and gaps that traditional companies won’t touch.

To focus more specifically on high-risk business, Lindsey formed XINSURANCE, which specializes in “true umbrella” liability coverage for exclusions and gaps, offering products that independent agents can sell. XINSURANCE protects individuals and businesses with an additional layer of liability coverage to provide true peace of mind. 

Today, XINSURANCE covers 700 risk classes, and is adding more. The firm insures sky-diving and parachuting, bungee jumping, avalanche control experts, rock climbing and river running, bounce houses, gymnastics and aerial arts, and heli-skiing. XINSURANCE can insure just about anything – corn mazes, acro-yoga, guard dogs, circuses, exotic pets, taverns, dating websites, midwives, hot air balloons, water parks, drivers with DUIs, trampoline parks, concealed carry permit holders, and more. 

A pet-loving homeowner might have a good overall liability policy, except that the policy won’t cover the owner’s pit bull, or the trampoline in the backyard. XINSURANCE will step in and fill those gaps, working with the homeowner’s existing insurance agent.

“If you like your insurance, keep your insurance,” says Lindsey. “But you’d be surprised what those policies don’t cover. We’ll fill those gaps seamlessly with your existing policy and agent.” 

The question naturally arises: How can XINSURANCE cover these high-risk activities and remain profitable, while most companies avoid such coverage?

As in most instances of business excellence, said Lindsey, the answer is in hard work, attention to detail, getting the little things right, knowing the customer, and fighting for the customer. 

Prime and XINSURANCE are successful because they develop close relationships with clients, understand their businesses, talk frequently, jump immediately into action when something bad happens, and handle everything in-house, including attorneys, underwriting, claims, and risk management. 

Lindsey is also unafraid to take on plaintiff attorneys and fight in court rather than quickly settle claims at the threat of a lawsuit.  He believes the rush to settle produces more and more frivolous lawsuits and higher settlement demands by plaintiff lawyers. 

As the insurance industry evolves and becomes even more risk-averse, Lindsey sees a bright future for his companies. Using a flexible, specialty approach, and by providing enhancement products and true umbrella policies, Lindsey expects a doubling or tripling of business over the next decade.