Insurers and brokers are ready and eager to back the construction industry, which stands to gain $132.2 billion from President Obama's economic stimulus package, said A.M. Best in a March 9 article.

U.S. insurers receive $7 billion to $9 billion annually in premiums from the construction industry, with workers' compensation being the largest product line, followed by general liability, excess liability, automobile, contractors equipment, and professional liability and surety.

The recession has stalled or stopped many construction projects, so premiums related to those projects have been deferred or outright cancelled.

One likely winner in the stimulus package are a type of wrap-up policy for either Owner Controlled Insurance Programs or Contractor Controlled Insurance Programs, which cover large projects of $100 million to $200 million. These programs offer a sort of soups-to-nuts coverage for all lines of insurance for everyone involved in the project.

One major benefit of a wrap-up policy is it can result in a stronger safety program, plus there are cost savings to the owner or general contractor. Several companies offer such coverage, including Ace, Arch, American International Group Inc., Liberty Mutual, Old Republic, Zurich, Travelers, Hartford and Seabright.

Special Reports /

A.M. Best: Construction, insurers, brokers ready to profit from stimulus

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