risk and liability issues affecting site improvement contractors

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Risk & Liability Issues Affecting Site Improvement Contractors

Risk & Liability Issues Affecting Site Improvement Contractors

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

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

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

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

Industry Overview

3 Major Construction Segments • Building Construction • Specialty Trade Contractors • Heavy & Civil Engineering

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.

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

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

Holes in Coverage

Possible exclusions • Contractor’s (or Sub’s) Warranty • Independent Contractor Exclusion • Subsidence/Earth Movement/ Soil Movement • Property Damage to Your Work

Holes in Coverage

Possible exclusions • Contractor’s (or Sub’s) Warranty • Independent Contractor Exclusion • Subsidence/Earth Movement/Soil Movement • Property Damage to Your Work

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/

http://geology.com/articles/soil/

http://geology.com/articles/soil/

Holes in Coverage

Possible exclusions • Contractor’s (or Sub’s) Warranty • Independent Contractor Exclusion • Subsidence/Earth Movement/ Soil Movement • Property Damage to Your Work

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


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


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

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

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


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


• 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

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

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?

Thank You!

FOR MORE INFO

Goretti DeSousa [email protected]

(800) 446-7647 x 659

risk and liability issues affecting site improvement contractors

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