Contractors Program
Nuts & Bolts: Victor O. Schinnerer & Company's contractors program recently released new 2004 editions of its three policy forms: a stand-alone professional liability policy, a stand-alone pollution incident policy, and a combined professional and pollution liability form. The changes allow for greater coverage consistency within Schinnerer's program. It also allows its contractor's coverage to better complement CGL coverage written on the ISO form. Schinnerer has clarified policy language, in response to feedback from Schinnerer's brokers. Some of the revisions resulted in broader coverage in certain areas.
Dollars: Professional liability limits for general contractors range from $1 million to $25 million. Minimum SIR is $10,000. And the minimum premium is $7,500. Professional liability limits for specialty contractors (mechanical, electrical, etc.) range from $1 million to $25 million. Minimum SIR is $5,000. Minimum premium is $4,000. Combined Professional and Pollution Incident Liability limits for general contractors range from $1 million to $25 million. Minimum SIR is $10,000. Minimum premium is $10,000. Combined professional and pollution incident liability limits for specialty contractors range from $1 million to $25 million. Minimum SIR is $5,000. Minimum premium is $6,000.
Carrier: Columbia Casualty Company in all states except for Illinois (in Illinois, CNA Casualty of California). Both are CNA companies and are non-admitted.
States Available: All states, the District of Columbia and U.S. territories, except for Puerto Rico.
Contact: Mary Jefferson, (301) 951-9798 or mary.l.Jefferson@schinnerer.com
Hurricane Spin-down Coverage
Nuts & Bolts: ACE USA, the U.S.-based retail operating division of the ACE Group of Companies, introduced hurricane spin-down insurance that can be used by the chemical process industry to help reduce the financial costs of closing down plant operations in response to the threat of a hurricane. The Hurricane Spin-down policy will pay a pre-determined value to cover the lost income and extra expenses incurred during the period of spinning down and spinning up plant operations. Coverage will be triggered if the probability of a hurricane impacting the covered location reaches an agreed-upon critical threshold based on the plant's hurricane response protocols. This policy is available for coastal areas in the United States and the Caribbean. The coverage period can extend from a few days to the entire hurricane season. ACE USA's Hurricane Spin-down insurance product will be marketed through both retail and wholesale insurance brokers.
Dollars: Minimum premium of $10,000; deductibles are deductibles "in-kind," e.g. insurance for major (categories 3, 4 and 5) hurricanes only. Coverages for categories 1 and 2 are available, but due to their frequency, are more expensive. Typical policy limits are expected to be between $1 million and $5 million, although higher limits are available upon request, and subject to underwriter discretion.
Carrier: Illinois Union Insurance Company, non-admitted. Illinois Union is a wholly owned subsidiary of ACE USA, and is rated "A" by A.M. Best, "A+" by S&P and Fitch, and "A2" by Moody's.
States Available: U.S. coastal states from Maine to Texas and the Caribbean Islands.
Contact: Michael Luck, (215) 640-5341 or michael.luck@ace-ina.com
