Starr Fills Important Construction Liability Gap

PRODUCT: Starr CIP Enterprise

COMPANIES: Starr Insurance Companies, Starr Surplus Lines Insurance Company

BEST RATING: A (Excellent), Size XV

AVAILABILITY: The product is only available to the wholesale brokerage community and is limited to a qualified select list of wholesalers who have demonstrated knowledge and expertise in this area.

FOCUS: Property owners and contractors with both primary and excess liability coverages may sometimes find that those coverages don’t align—exposing them to significant liability exposures.

Starr responds with Starr CIP Enterprise, a monoline general liability construction wrap-up insurance policy designed for property owners and contractors that need tailored primary and excess general liability coverage for single large construction projects.

The consolidated insurance program combines primary general liability and excess liability coverages into a single carrier package that provides comprehensive coverage for owners, general contractors and all enrolled contractors.

“Starr CIP Enterprise is designed to streamline coverage at the project level by eliminating gaps in subcontractors’ insurance coverages, limits and/or financial strength,” says Aaron Kayafas, regional manager, New England, Starr’s construction business. “The product also ensures continuity in strategy and claims handling between the primary and excess policies.”

Ultimately, that arrangement “drives more efficiency and lowers final cost of claim,” Kayafas explains. “The product is a great solution for those who are finding it increasingly difficult and time-consuming to demand, monitor and maintain consistent coverage and limits for all contractors on a given project.”

Starr has “extensive experience” in both the primary and excess construction underwriting arenas, Kayafas adds, but “the new product combines what has historically been a bifurcated process and gives our selected broker partners access to a single product for addressing the primary and lead excess needs for project business.”

COVERAGE DETAILS: The product is provided on a multiyear basis up to five years. Key coverage highlights include:

  • Primary limits: $2 million/$2 million/$2 million and $2 million/$4 million/$4 million
  • Excess limits: $10-25 million
  • Minimum value: $20 million for single-site wrap-up; $200 million for a multiple or “rolling” project
  • Deductibles: $25,000-$100,000

Comprehensive custom coverage enhancements are available to address concerns regarding named insureds and enrollments, project site, extended completed operations coverage, statute of repose, modifications to exclusions J, K and L, and repair work, among other concerns.

UNDERWRITING: Starr’s underwriting team works closely with its internal loss control and claims teams to evaluate and design a program based on review of the following materials: ACORD application; five years’ recently valued loss runs of general contractor or prior program; prior carrier information, including limits, deductible and premium, if available; safety manual; risk control contact information; quality assurance and control program details; financials; soil reports; and supplemental applications.

MINIMUM PREMIUM: $100,000.

TARGET: Owners, sponsors, general contractors and joint ventures involved in public and private institutional and infrastructure construction projects valued at $20 million or higher, including schools, hospitals, senior housing, infrastructure, government buildings, commercial-grade apartments, retail, apartments, hotels, casinos and other commercial construction projects.

COVERAGE TERRITORY: All U.S. states except New York. Limited appetite in Florida.

CONTACT: Aaron J. Kayafas, New England & Midwest zonal manager, Starr, 617-603-1206; and Leonard Streeter, zonal manager, Starr, 617-692-5388.

Jacquelyn Connelly is IA senior editor.