As severe weather events grow in frequency and severity, the risk of construction delays not covered by traditional Builders Risk insurance policies intensifies. Zurich North America seeks to fill the gap with the launch of Construction Weather Parametric Insurance for project owners and contractors.
Traditional insurance products such as Builders Risk policies offer valuable protection for financial losses related to weather events, Zurich NA officials note, but only when those events cause physical loss or damage to a project. The Construction Weather Parametric policy doesn’t require physical loss or damage for a claim to be paid. Instead, claim payment is based on predetermined weather events occurring in the project’s location, such as extreme rain, wind or temperatures (hot or cold). Any of these perils can cause project delays, resulting in severe financial losses, even when the project doesn’t sustain physical damage. The coverage is highly customizable for the contractor or owner, with options to help optimize cost-effectiveness for customers who face varying consequences if a project is delayed. An owner, for example, could incur heavy revenue losses from operating profits that aren’t being realized. A contractor who misses project deadlines could suffer penalties, including liquidated damages, and incur additional expenses.
“We are proud to offer this solution as a complement to our newly enhanced suite of Master Builders Risk and Project Builders Risk policy forms, which include flexible reporting options, as well as several new coverage enhancements attuned to today’s evolving marketplace,” says Zurich NA Head of Construction Property Kelly Kinzer.
With Zurich Construction Weather Parametric Insurance, the perils, thresholds, limit, deductible and coverage duration can be individually tailored to meet buyer needs. The threshold options for each peril are based on historical weather data at project location. Parametric customers can purchase coverage for one or more weather perils, and coverage duration can be tailored to peak season for the weather risk and pegged to milestones in the construction schedule. A simplified claims process helps expedite payouts. Because payment is based on objective weather data, there is little need to investigate the loss. Coverage responds as long as the trigger event occurs, the project is impacted within the agreed-upon dates, and the deductible has been met. — Zurich North America, Schaumburg, Ill., www.zurichna.com
PUMP, CRANE INSURER TEAMS WITH FLEET COST & CARE
Specialty construction Risk Management and Insurance provider NationsBuilders Insurance Services has expanded benefits for policyholders through a partnership with concrete pump and crane fleet management software developer Fleet Cost & Care. NBIS insureds benefit in several ways, officials note, as the partnership helps a) manage maintenance more efficiently to reduce wear and tear and retain equipment records; b) manage contracts and risk transfer protection at a much higher level to ensure that operators are getting their work tickets signed timely; c) provide a solid defense in the event of a claim with Job Ticket & Maintenance schedule reporting; and, d) economize value added services by affording Fleet Cost & Care preferred pricing eligibility.
“We have partnered with Fleet Cost & Care to continue to educate and provide solutions to the management and owners of the companies we insure,” says NBIS President Bill Tepe. “Working together to move our industries forward and provide better protection, a safer workplace and reduced incidents for those that chose to engage in the process.”
“When customers use [our] system, they have access to all the feature-rich safety steps built into the business process, from state-specific terms and conditions to multi-level safety checklists, including numerous ways to keep safety and risk management a documented part of every job,” adds Fleet Cost & Care President Jeff Curran. — NationsBuilders Insurance Services, Inc., Atlanta; 870/866-RMSS; www.nbis.com