Bermuda-based Ironshore Specialty Casualty has enhanced its Transition Protection policy form to address contractual exposures associated with an organizational merger or acquisition (M&A) specific to the construction industry.
Construction companies typically have contractual requirements to obtain insurance coverage for work completed prior to the M&A, notes a company statement Thursday.
The Construction Transition Protection product is offered for limits of up to US$2 million per occurrence on a primary basis and up to US $10 million on an excess basis, the statement adds.
Meant to respond to unforeseen risks that may arise following the completion of a successful transition, the product offers “coverage for abrupt and accidental property damage or bodily injury arising out of work completed by a construction company that occurred prior to the closure of the corporate transaction,” Ironshore adds.
“Coverage is underwritten on a claims-made basis for an injury period stipulated within contractual documentation or up to a maximum of five years to cover potential liabilities resulting from past operations,” the statement notes.
The new offering “will benefit those clients that require coverage to satisfy contractual requirements when the entity’s liabilities are not acquired under the terms of the agreement,” says Ben Beauvais, the company’s lead, Construction Industry Practice.
Ironshore – which provides broker-sourced specialty p&c insurance coverages for varying risks located throughout the world – underwrites a range of programs for all types of commercial and residential construction projects and delivery methods.