The Steel Framing Alliance and Itasca, Ill., broker Gallagher Construction Services recently launched a comprehensive underwriting program that provides
The Steel Framing Alliance and Itasca, Ill., broker Gallagher Construction Services recently launched a comprehensive underwriting program that provides steel framing users as much as 50 percent discounts on a range of insurance products. STEEL Advantage covers cold-formed, steel-framed, single-family tract, low-rise multifamily, mid-rise commercial, and mixed-use projects. The program is being launched on the West Coast, with rollouts in other markets at a later date.
On projects where steel framing is used for all structural elements, it could potentially yield general contractors or owners and developers up to 50 percent premium savings on General Liability when compared to concrete or wood framing alternatives. On a $10 million project with one-year build cycle, SFA and Gallagher note, minimum annual premiums would typically be $20,000 for cold-formed steel versus $40,000 for concrete or wood. Under comparable material specs, the program likewise offers savings of 5 percent to 60 percent for Builders Risk Insurance, Workers Compensation, Surety/Bond, and Commercial Property coverage.
Insurance pricing can fluctuate tremendously depending upon many key factors, such as the period of time for project completion, materials used, skill level and safety of laborers, and the likelihood for future structural claims and lawsuits, says Gallagher Area Vice President Charles Specht III. He adds that the risks associated with those factors are reduced when builders use steel framing.