March 9, 2017 by Canadian Underwriter
XL Catlin announced on Wednesday that it has quadrupled its builder’s risk insurance capacity to US$1 billion from US$250 million for construction firms in North America.
The increased coverage for high-value commercial real estate projects is the result of a greater demand for a “single carrier builders risk solution for hospital, educational and commercial real estate clients for large valued projects,” said Joe Vierling, senior vice president of XL Catlin’s North America construction property insurance business, in a press release. “With this enhanced capacity, XL Catlin is in the unique position to provide a non-syndicated property policy as part of an all lines insurance solution to our insureds,” Vierling added.
The enhanced capacity is available for both owners and contractors and will allow XL Catlin insurance companies to provide life cycle property coverage by providing insurance during both the construction of a project and during the operational phase once the construction is complete, the insurer explained. Coverage will be available on the XL Catlin insurance companies’ completed builders risk property form, which provides coverage for the term of the project and includes coverage for owners, general contractors and subcontractors. In addition to property damage, the policy can be endorsed to provide coverage for the project’s future earnings by including “delay in start-up” coverage.
Gary Kaplan, president of XL Catlin’s North America construction insurance business, said that the company has “successfully partnered with our customers in the construction industry by providing primary casualty, excess casualty, professional/pollution, subcontractor default insurance and property covers on a variety of large, complex projects through a single line of business. This enhanced capacity strengthens our ability to meet client needs for a single carrier property program for their high valued construction projects. Our unique structure allows for more efficient policy administration and claims handling, eliminating the need for multiple carriers to agree to policy changes or claims payments.”
XL Catlin insurance companies offer property, casualty, professional, financial lines and specialty insurance products globally. XL Catlin is the global brand used by XL Group Ltd.’s insurance and reinsurance companies which provide property, casualty, professional and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world.