Willis Places Coverage for World Trade Center Construction

February 26, 2008

World Trade Center developer Larry A. Silverstein and Willis Group Holdings said they have successfully placed workers’ compensation, general liability, excess liability, and specialty insurance programs for construction of three towers at the World Trade Center site.

As the first construction-related liability insurance programs secured for the three towers, they cover the contractors’ employees on the site and the liability exposure resulting from construction.

The coverage, which is for work at Towers 2 through 4, was readied in anticipation of the recent turnover to Silverstein Properties by the Port Authority of New York and New Jersey, of the sites for Towers 3 and 4. By mid-year, the site for Tower 2 is expected to be turned over as well.

The three office towers, developed by Silverstein Properties and designed by architects Norman Foster, Richard Rogers, and Fumihiko Maki, will rise along the site’s eastern edge.

“This is a significant step in our efforts to build these three buildings,” Silverstein said. “The insurance industry has an historic connection to lower Manhattan, and our renewed partnership with the industry is key to the entire rebuilding effort.”

The WTC insurance program responds to the specifications of the Port Authority as one of the requirements for site turnover. The Controlled Insurance Program, which consists of workers’ compensation and general liability, is being provided by AIG Group. The program includes extensive safety and loss control resources, as well as a tailored claims management program to assist workers.

AIG has also been selected to underwrite environmental liability insurance for the project.

Beazley Syndicate (Lloyd’s of London) is providing specialized protection. The excess liability program, which adds additional protection to the general liability program, is led by ACE USA and features many of the world’s leading insurers – including Aspen, AWAC, Lexington, XL Insurance and others.

The policy terms for all placements cover the entire period of construction. Additional placements will continue through June of 2008 when the builders’ risk (property under construction) insurance programs begin.

By next month, it is expected that contracts will have been awarded for several billion dollars worth of construction.

Source: Willis Group Holdings

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