MGT Insurance Company submitted updates to its Mainstreet Businessowners program in New Jersey, introducing new exclusions, revised liability structures, and pricing changes across the product. The filing includes a 25.9% overall rate increase impacting 30 policyholders representing approximately $49,633 in written premium. Individual policy changes range from 5% to 81%.

The filing introduces several notable new endorsements aimed at tightening liability exposure and clarifying coverage aggregation rules.

One of the more unusual additions is a pair of exclusions targeting psychotropic, synthetic, and designer drugs. The endorsements exclude both property and liability coverage tied to substances such as synthetic cannabinoids, bath salts, Spice, K2, and similar products marketed as “legal highs.”

The exclusions apply broadly to:

• manufacturing
• storage
• distribution
• sale
• possession
• delivery
• business income losses connected to those products

MGT also added a delivery operations exclusion for hired and non-owned auto coverage. The endorsement excludes liability arising from food, retail, or product delivery operations performed using hired or employee vehicles.

The filing provides insight into how MGT differentiates delivery-related business risks. Non-owned auto liability premiums increase significantly for businesses with delivery exposure, with additional hazard factors for moderate and high-risk delivery operations.

Another notable addition is a new anti-stacking endorsement stating that if multiple MGT or affiliated-company policies apply to the same loss, the insured cannot recover more than the highest applicable limit available under a single policy.

The company also introduced a non-cumulation endorsement that reduces available limits across policy periods for the same occurrence, further tightening long-tail liability exposure.

On the business interruption side, MGT added optional endorsements extending the business income restoration period from the standard timeframe to either 18 or 24 months. The extended periods carry premium factors of 0.15 and 0.30 respectively.

The filing also shows how MGT prices small business stability and longevity. Businesses operating for less than one year receive a 1.050 factor, while businesses operating for more than six years receive a 0.950 factor.

Additional underwriting and pricing changes include:

• a 5% full-pay discount for annual premium payments
• minimum earned premium requirements for contractor classes
• new flat charges for gas pumps, propane filling stations, car washes, and vacant land exposures
• updated professional liability pricing for barber shops, beauty salons, and nail salons

The filing also adds a blanket additional insured endorsement for parties required by written contract, with a $100 flat charge per additional insured.