The construction industry is like no other. Its insurance needs are distinct and unusual. That is why Beazley has an integrated team of underwriters and claims specialists who understand the professional liability needs of developers and owners of construction projects.
We have utilised three decades of experience in insuring architects and engineers undertaking some of the world’s very largest and most complex construction projects to tailor ‘DevelopPro’ to meet the needs of a project owner.
- Protection for owners and developers in the event that a liability caused by a negligent act, error or emission on the part of the design team is not covered by, or is greater in value than, the limit of the design team members’ own professional liability insurance.
- Protection for owners and developers in the event that a liability arising from a pollution event caused by a contractor is not covered by, or is greater than, the limit of the contractor’s own pollution liability insurance.
- Third party contractors pollution liability cover for pollution conditions caused by the developer’s contractors.
- Third party professional liability arising out of any negligent act, error or omission by the developer’s own design team.
- Supplementary payments coverage with US $25,000 aggregate limit for:
- Defendants reimbursement
- Disciplinary/regulatory/administrative actions reimbursement
- Reputation management reimbursement
- Bankruptcy of a design professional or contractor
- Subpoena expenses.
- Nil self-insured retention included as standard for professional and pollution protective claims.
- Pollution coverage extends to liability for transportation and non-owned disposal sites.
- Clear policy wordings to explain the triggers for the cover, including:
- The unavailability of the underlying policy through the breach of a policy condition
- The erosion, partial or complete, of the underlying policy through unrelated claims
- Situations where the underlying policy has not been maintained.
- Requirement for underlying design professionals and contractors to carry minimum levels of insurance through the initial contract only. No ongoing requirement to subsequently monitor.
- Policy provides cover to the developer where their loss exceeds the limitation of liability cap in the contract with their design professionals and contractors.
- Automatic extended reporting period when required.
Appetite and target market
- We seek to develop long term partnerships with clients that are experienced and repeat procurers of construction.
- Long period project specific policies
- Annually renewable ‘practice’ policies covering all development work.
- Construction development hybrid policies – providing coverage for a number of declared projects on a long period basis.
- Primary and excess layer participation.
- Various project types – design build design-bid-build, integrated project delivery.
- Target development profile includes, education, healthcare, technology, commercial, retail, mixed use, civil infrastructure, transport, institutional/governmental.
- Guideline minimum premium for long period project specific policies is US $100,000 and minimum contract value of US $50,000,000.
Principally US domiciled risks but we have an appetite to write projects located elsewhere.
Maximum policy periods
Up to 10 years, including the extended reporting period.
Up to US $10,000,000