Suppliers get minority credit source

Auto suppliers have a new way to obtain minority-sourcing credit by buying insurance coverage.

2001 Management Briefing Seminars index
Goss Group Inc., Marsh Inc. and GMAC Insurance Group formed joint venture company Goss LLC to sell customized insurance products to automotive suppliers. Goss LLC was created in November 2000 and began testing its services Jan. 1, accumulating $3 million of premiums and about 20 clients.

"At the end of the day, we can offer competitive premiums … and bring exotic coverage to the table," said Gregg Goss, CEO of Goss LLC.

Coverage tailored to suppliers includes product recall, warranty cost, design liability, environmental and even kidnap and ransom insurance, Goss said. While such products are available, Goss LLC will be able to package them at lower prices for suppliers. The company will act as a program manager, coordinating the coverage between selling agents and underwriters.

Suppliers' need for such products has intensified in recent years as their businesses have grown globally and as automakers have passed on more responsibility for recall costs to their parts makers.

The venture is certified by the Michigan Minority Business Development Council. Premiums purchased by suppliers apply as credits toward the minority sourcing requirements of U.S. auto manufacturers.

Goss LLC is 51 percent owned by Goss Group, 34 percent by Marsh and 15 percent by GMAC. Officials wouldn't disclose the capital supplied by each party.

You can reach Amy Wilson at awilson@crain.com

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