Construction project owners need to protect themselves when architects and engineers don’t have adequate professional liability insurance. Ironshore has a solution.
PRODUCT: Owner’s Protective Professional Indemnity (OPPI)
COMPANY: Ironshore Specialty Insurance Company
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through approved independent agents and brokers.
FOCUS: “Construction project owners need to protect themselves when engineers and architects don’t have adequate professional liability insurance,” says Valerie Onderka, vice president, Designers and Contractors Professional Liability at Ironshore Insurance Services—which is why Ironshore now offers dedicated Owner’s Protective Professional Indemnity insurance (OPPI).
OPPI protects a project owner from losses incurred due to negligence of an engineer or architect, or the contractor in a design/build delivery structure. “This product is geared toward owners who are concerned about the adequacy and availability of their design professional’s and design-build contractor’s professional liability limits,” Onderka explains.
Ironshore uses a specialized risk assessment approach to ensure risk is allocated and articulated in a fair and reasonable manner. “Our ultimate goal is to ensure risks are allocated to the party most able to control the risk, and then to protect the appropriate parties for the risk they assumed,” Onderka says.
UNDERWRITING: OPPI indemnifies a project owner for first-party loss resulting from contracted design professionals’ and builders’ negligence, when damages exceed the existing professional liability insurance policy limit. Coverage also provides defense of third-party claims against the owner due to negligence on the part of professionals retained by the owner for a specific project. OPPI offers excess layer protection above the available underlying policy limits or self-insured retention for third-party claims. Dedicated limits up to $15 million are available on a project-specific basis.
The OPPI product supplements the builder and design professional coverage should underlying limits be exhausted through adjudication, mediation or settlement. Above the self-insured retention amount, coverage applies if the subcontractor professional or builder liability coverage lapses for whatever reason. OPPI is tailored to respond even if the owner has executed a contractual limitation of liability with the design professional or builder.
Risk assessment and monitoring throughout a project period is beneficial to the owner, especially on projects with alternative delivery methods and complex contractual relationships. OPPI provides risk management services including reviews of all contracts between the insured owner and their design professionals and builders.
MINIMUM PREMIUM: $15,000 for a $1 million limit.
TARGET: Project owners, real estate investors and any owners and developers who are embarking on any type of construction project—especially those concerned about the adequacy and availability of their design professionals’ and design/build contractors’ annual practice professional liability limits.
COVERAGE TERRITORY: All 50 U.S. states.
CONTACT: Valerie Onderka, vice president, Designers and Contractors Professional Liability; Ironshore, 6 Concourse Parkway, Suite 1575, Atlanta, GA 30328; 404-845-7560.
Ronimarie Acord is an IA contributor.
