Kurt Colden, assistant vice president and account executive for insurance-broker Lockton, notes that builders' risk policies are often heavily manuscript and allow for extensive discussions over the placement.
Dan Brimer, brokerage manager in St. Louis for the excess-and-surplus lines broker Burns & Wilcox, says that some of those terms and conditions might include coverage of soft costs, such as delays in construction, additional professional fees, lease-administration costs and extension of time to complete the project.
The definition of flood is another issue that is open to a wide range of interpretation among underwriters, notes Claudia Hrody, director of marketing for insurance broker Hub International Scheer's operation in Westmont, Ill.
Some insurers won't cover damage caused by a backed-up sewer or drain. It is important to make sure that the definition is clear and defined in the policy, and something the client agrees with.
For carriers, Zurich concentrates on service and providing "quick, reasonable solutions" to their clients "to help them reduce their costs," says Eric Zimmerman, head of engineering lines for Zurich North America.
"We are in this for the long haul," he says, noting that Zurich provides insurance services to many of the top 100 construction companies.
This commitment means providing capacity for projects that may run for as long as five to seven years and dealing with new construction methods that require a bit of creativity to underwriting.
"We pride ourselves on bringing solutions to complex problems," says Zimmerman.
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