Peachtree Now Covers Potential Ensuing Losses on Construction Projects

PRODUCT: Construction casualty: primary and excess

COMPANY: Peachtree Special Risk Brokers LLC

BEST RATING: Approximately 80 insurance carriers, admitted and non-admitted, all rated a minimum of A- by A.M. Best.

AVAILABILITY: Coverage is available through independent agents and brokers.

FOCUS: The carriers which Peachtree Special Risk Brokers represents are amending the care, custody and control (CCC) personal property exclusion in their commercial general liability program to give back coverage for “on-hook” CCC when necessary.

“This means the insured’s policies can now cover potential ensuing losses,” explains David O’Keeffe, Peachtree’s executive vice president and national construction practice leader. “A typical inland marine policy does not automatically provide this coverage.”

Peachtree offers more than 30 years of construction risk experience to generalist agents and brokers and works with 80 insurance carriers who “understand the level of complexity of all sorts of projects,” O’Keeffe says. “Unless you pay close attention to the special needs of construction accounts, problems will arise.”

O’Keeffe specializes in working with retail agents and brokers. “We give them access to markets and products that they would not normally have access to,” he says. “It helps them compete with the alphabet brokers and allows them to present a comprehensive, quality product.”

Peachtree considers every class of construction—residential and commercial, primary and excess. “Within that, we offer project-specific policies for owners, developers, general contractors and trade contractors,” O’Keeffe says. “We offer project-specific policies because certain owners prefer to have that, rather than rely on a contractor’s practice policy that may or may not be riddled with exclusions.”

The company also offers policies that include coverage for statute of repose. This enables the owner to extend the products and completed operations to the required statutes in various states.

For environmental contractors, Peachtree can place workers comp, commercial GL, auto, professional liability and pollution liability. “There are only a few carriers that do all those lines,” O’Keeffe points out. “We understand the all-lines approach on environmental carriers.”

UNDERWRITING: The minimum limit on excess is $1 million, and there’s no maximum. Minimum deductible is $2,500. Underwriting requirements include an ACORD application; five years of currently valued loss runs if the entity has been in business five years or more; and the appropriate supplemental application.

MINIMUM PREMIUM: $10,000 for GL; $5,000 for excess/umbrella.

TARGET: Peachtree works with risks ranging from local roofers to construction projects that require a tower up to $250 million. Target clients include all classes of contracting for residential and commercial projects that require practice policies, owner-controlled insurance programs/contractor-controlled insurance programs and primary or excess/umbrella capacity in excess of $100 million.

Peachtree is designed to help small contractors that are growing. “It’s when the standard carriers back out—that’s the contractor we’re looking for,” O’Keeffe says.

COVERAGE TERRITORY: U.S.

CONTACT: David O’Keeffe, executive vice president and national construction practice leader; Peachtree Special Risk Brokers LLC, 1815 Griffin Road, Suite 300, Dania Beach, FL 33004; 954-903-4277.

Ronimarie Acord is an IA contributor.