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Benefits of specialized coverage for site improvement contractors
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WEBCAST
Risk & Liability Issues Affecting Site Improvement Contractors
Risk & Liability Issues Affecting Site Improvement Contractors
Page 2
Today’s Agenda
• Intro to NIP Group • Industry Overview • Specific Challenges faced by contractors • Benefits of Specialized Coverage • Overview of the SitePro Program • Things to Look For, when preparing a
submission • Summary • Q&A
About NIP
Page 4
About NIP Group
• A “top 100” business insurance and risk management intermediary
• Provide a wide range of brokerage, underwriting, and risk management services
• Entrepreneurial, innovative, and responsive • Deep knowledge of key markets • 20+ years of providing agents with
exceptional coverage, competitive commissions, and fast, efficient service
Page 5
About NIP Programs
• Develop and manage customized business insurance for industries with specialized insurance and risk management needs Custom-tailored coverage for select markets Unique underwriting, loss control, and claims service
models, valued by both clients and insurers Underwritten by major insurers such as Travelers,
Chartis, Argo, AmTrust Market expertise Stability through all market cycles
Page 6
NIP’s Programs
C-StorePro™ – for Convenience Stores
Employment Practices Liability Insurance
GlassPro® – for Glass Dealers and Installers
GrowPro® – for Greenhouses, Garden Centers and Nurseries
HVACPro® – for AC, Refrigeration, Heating or HVAC Contractors
IrrigationPro™ – for Providers of Irrigation and Pesticides for Lawns, Crops and Golf Courses
InteriorScapePro™ – for Contractors Providing Indoor Landscaping and Plant Maintenance
LandPro®/TreePro™ – for Landscapers and Tree Services Providers
LawnCarePro™ – for Lawn Care Service Providers
LightScapePro™ – for Lightscaping Contractors
MaintenancePro® – for Cleaning and Maintenance Services
MedEdge® – Affinity program for Physician Assistants and Optometrists
MenuPro™ – for Restaurants and other Dining Establishments
PetPro™ – for Pet Care Professionals
PlumbingPro® – for Commercial Plumbing Contractors
PowerPro® – for Electrical Contractors
SignagePro® – for Sign, Display and Awning Companies
SitePro® – for Excavation, Site Prep and Paving Contractors
WorkPro – Workers’ Comp
Industry Overview
Page 8
Industry Overview
3 Major Construction Segments • Building Construction • Specialty Trade Contractors • Heavy & Civil Engineering
Page 9
Industry Overview
Heavy and Civil Engineering • Build sewers, roads, highways, bridges,
tunnels, and other infrastructure projects Land Improvement Contractors
• Non-building contractors – Perform site prep work
– Clearing / grading of land
– Excavation
– Water, sewer, utility construction
– Street & road construction
– Paving, Line striping, etc.
Page 10
Commercial GL Coverage
Land Improvement Contractors • Commercial General Liability Coverage Protects business against:
• Accidents that might happen on premises • Exposures related to work product
Standard GL Policy covers certain lawsuits where negligence resulted in bodily injury, property damage, personal/advertising injury
• Can arise from injuries both at time of - and even years after - completion of construction project
Page 11
Examples of Liability
Examples of claims • Child wanders onto site and is injured while
playing • Insured accidentally cuts through gas line
while attempting to repair a sewer line • Bobcat operator causes damage to nearby
vehicle • Faulty gas line installed by sub-contractor
results in fire damage
Page 12
Holes in Coverage
Possible exclusions • Contractor’s (or Sub’s) Warranty • Independent Contractor Exclusion • Subsidence/Earth Movement/ Soil Movement • Property Damage to Your Work
Page 13
Holes in Coverage
Possible exclusions • Contractor’s (or Sub’s) Warranty • Independent Contractor Exclusion • Subsidence/Earth Movement/Soil Movement • Property Damage to Your Work
Page 14
Holes in Coverage
Possible exclusions • Contractor’s (or Sub’s) Warranty • Independent Contractor Exclusion • Subsidence/Earth Movement/Soil Movement • Property Damage to Your Work
Page 15
Holes in Coverage
Over 50 percent of these areas are underlain by soils with abundant clays of high swelling potential.
Less than 50 percent of these areas are underlain by soils with clays of high swelling potential.
Over 50 percent of these areas are underlain by soils with abundant clays of slight to moderate swelling potential.
Less than 50 percent of these areas are underlain by soils with abundant clays of slight to moderate swelling potential.
These areas are underlain by soils with little to no clays with swelling potential.
Data insufficient to indicate the clay content or the swelling potential of soils. http://geology.com/articles/soil/
Page 16
Holes in Coverage
Possible exclusions • Contractor’s (or Sub’s) Warranty • Independent Contractor Exclusion • Subsidence/Earth Movement/ Soil Movement • Property Damage to Your Work
Page 17
Holes in Coverage
Possible exclusions • Contractor’s (or Sub’s) Warranty • Independent Contractor Exclusion • Subsidence/Earth Movement/ Soil Movement • Property Damage to Your Work
Page 18
Other Considerations
Subcontracted Work • Uninsured Subs are Bad News During an audit, if your insured can’t provide COIs for
the Sub, their GL will pick-up the exposure, adding payroll to the audit, and the premium will be assessed, to cover the uninsured Sub
Page 19
Other Considerations
Admitted vs. Non-Admitted Carriers • Admitted Carriers are licensed and regulated
by the State • Non-Admitted Carriers are not, presenting a
potential for insurer insolvency
Page 20
Other Considerations
Carrier Ratings • Carriers are rated by both S&P and A.M. Best • Ratings reflect the carrier’s financial strength
and ability to pay claims
NIP’s SitePro®
An Overview
Page 22
NIP’s SitePro® Overview
• Specialty insurance designed to service excavation & land-grading contractors.
• One of the most comprehensive insurance programs available for site preparation and land improvement contractors
• Many coverage enhancements tailored to their specific insurance needs. • Competitive pricing for businesses of all sizes, from small contractors to large
multi-state operations. Minimum GL premiums as low as $5,000
Page 23
NIP’s SitePro® Program
• Backed by strong financial carrier Rated "A" (Excellent) Financial Size IX by A.M. Best
• ISO Based • Program is Admitted in All States • Currently write in 44 states:
Exceptions: Alaska, Hawaii, Idaho, North Dakota, Montana,& Colorado
• Accounts rated off payroll
Page 24
NIP’s SitePro® Program
Program Highlights A.M. Best “A” Rated (Excellent) Carrier (Company Size IX)
GL Minimum Premium – $5,000
Competitive Rates
Superior Customer Service
ISO Based Program
Coverage Enhancements Blanket Additional Insured – ongoing &
completed operations
Per Project Aggregate
Blanket Wavier of Rights
Employee Benefits Liability
Limited Jobsite Pollution
Silent on Subsidence
EPLI (Employment Practices Liability
Variety of Direct Bill Payment Options
Ineligible Exposures Accounts subcontracting more than 40% of work
Accounts performing work as a Paper Contractor
Underground storage tank removal, tank construction, cleaning, or repair work
(except septic tank work)
Environmental remediation / abatement contractors
Bridge Construction
Airport Paving
Page 25
NIP’s SitePro® Program
• Third Party Services • Risk Control - FARA
– Phone Surveys – Physical Surveys – Virtual Surveys
• Claims Services - AmTrust – 24/7/365 Service – Low Workload Claims Adjusters to easily manage claims – Automated Claims System
• Premium Audit - OSI – Physical Audits – PIVOT Audits – Phone Audits
Page 26
Submission Requirements
• Need complete submission, to review all risks: Completed ACORD application Completed SitePro Supplemental Application 3 Years plus 1 Current Year of Currently-Valued, Hard Copy
loss runs for all lines of business being considered Current Job Listing and MVRs (ability to quote subject to)
• Common Declinations / Ineligible Exposures • One-man operations/
owner-only operations
• Ground-Up construction
• Environmental remediation / abatement contractors
• Bridge Construction
• Airport Runway Paving
• Property / Inland Marine in Florida
• NYC 5 borough work ineligible
• Demo, over 1 story
Summary
Page 28
Summary
SitePro provides • Outstanding coverage, tailored to specific needs of site
improvement contractors • Strength and reputation of AmTrust North America1
• Backed by 20+ years of experience in providing specialized programs tailored to the unique needs of select classes of business
• Stability through all market cycles • NIP awarded “Best Practice Designation” by TargetMarkets
1 Rated “A” (Excellent) Financial Size IX, by A.M. Best
Questions?