Benefits of specialized coverage for site improvement contractors

1. WEBCAST
Risk & Liability
Issues Affecting
Site Improvement
Contractors
Risk & Liability
Issues Affecting
Site Improvement
Contractors

2. Page 2
Today’s Agenda
• Intro to NIP Group
• Industry Overview
• Specific Challenges faced by contractors
• Benefits of Specialized Coverage
• Overview of the SitePro Program
• Things to Look For, when preparing a
submission
• Summary
• Q&A

3. About NIP

4. Page 4
About NIP Group
• A “top 100” business insurance and risk
management intermediary
• Provide a wide range of brokerage,
underwriting, and risk management services
• Entrepreneurial, innovative, and responsive
• Deep knowledge of key markets
• 20+ years of providing agents with
exceptional coverage, competitive
commissions, and fast, efficient service

5. Page 5
About NIP Programs
• Develop and manage customized business
insurance for industries with specialized insurance
and risk management needs
 Custom-tailored coverage for select markets
 Unique underwriting, loss control, and claims service
models, valued by both clients and insurers
 Underwritten by major insurers such as Travelers,
Chartis, Argo, AmTrust
 Market expertise
 Stability through all market cycles

6. Page 6
NIP’s Programs
 C-StorePro™ – for Convenience Stores
 Employment Practices Liability Insurance
 GlassPro® – for Glass Dealers and Installers
 GrowPro® – for Greenhouses, Garden Centers and
Nurseries
 HVACPro® – for AC, Refrigeration, Heating or HVAC
Contractors
 IrrigationPro™ – for Providers of Irrigation and
Pesticides for Lawns, Crops and Golf Courses
 InteriorScapePro™ – for Contractors Providing
Indoor Landscaping and Plant Maintenance
 LandPro®/TreePro™ – for Landscapers and Tree
Services Providers
 LawnCarePro™ – for Lawn Care Service Providers
 LightScapePro™ – for Lightscaping Contractors
 MaintenancePro® – for Cleaning and Maintenance
Services
 MedEdge® – Affinity program for Physician
Assistants and Optometrists
 MenuPro™ – for Restaurants and other Dining
Establishments
 PetPro™ – for Pet Care Professionals
 PlumbingPro® – for Commercial Plumbing
Contractors
 PowerPro® – for Electrical Contractors
 SignagePro® – for Sign, Display and Awning
Companies
 SitePro® – for Excavation, Site Prep and Paving
Contractors
 WorkPro – Workers’ Comp

7. Industry Overview

8. Page 8
Industry Overview
3 Major Construction Segments
• Building Construction
• Specialty Trade Contractors
• Heavy & Civil Engineering

9. Page 9
Industry Overview
Heavy and Civil Engineering
• Build sewers, roads, highways, bridges,
tunnels, and other infrastructure projects
 Land Improvement Contractors
• Non-building contractors
– Perform site prep work
– Clearing / grading of land
– Excavation
– Water, sewer, utility construction
– Street & road construction
– Paving, Line striping, etc.

10. Page 10
Commercial GL Coverage
Land Improvement Contractors
• Commercial General Liability Coverage
 Protects business against:
• Accidents that might happen on premises
• Exposures related to work product
 Standard GL Policy covers certain lawsuits
where negligence resulted in bodily injury,
property damage, personal/advertising injury
• Can arise from injuries both at time of - and even
years after - completion of construction project

11. Page 11
Examples of Liability
Examples of claims
• Child wanders onto site and is injured while
playing
• Insured accidentally cuts through gas line
while attempting to repair a sewer line
• Bobcat operator causes damage to nearby
vehicle
• Faulty gas line installed by sub-contractor
results in fire damage

12. Page 12
Holes in Coverage
Possible exclusions
• Contractor’s (or Sub’s) Warranty
• Independent Contractor Exclusion
• Subsidence/Earth Movement/ Soil Movement
• Property Damage to Your Work

13. Page 13
Holes in Coverage
Possible exclusions
• Contractor’s (or Sub’s) Warranty
• Independent Contractor Exclusion
• Subsidence/Earth Movement/Soil Movement
• Property Damage to Your Work

14. Page 14
Holes in Coverage
Possible exclusions
• Contractor’s (or Sub’s) Warranty
• Independent Contractor Exclusion
• Subsidence/Earth Movement/Soil Movement
• Property Damage to Your Work

15. Page 15
Holes in Coverage
Over 50 percent of these areas are underlain by soils with abundant clays of high swelling potential.
Less than 50 percent of these areas are underlain by soils with clays of high swelling potential.
Over 50 percent of these areas are underlain by soils with abundant clays of slight to moderate swelling potential.
Less than 50 percent of these areas are underlain by soils with abundant clays of slight to moderate swelling potential.
These areas are underlain by soils with little to no clays with swelling potential.
Data insufficient to indicate the clay content or the swelling potential of soils.
http://geology.com/articles/soil/

16. Page 16
Holes in Coverage
Possible exclusions
• Contractor’s (or Sub’s) Warranty
• Independent Contractor Exclusion
• Subsidence/Earth Movement/ Soil Movement
• Property Damage to Your Work

17. Page 17
Holes in Coverage
Possible exclusions
• Contractor’s (or Sub’s) Warranty
• Independent Contractor Exclusion
• Subsidence/Earth Movement/ Soil Movement
• Property Damage to Your Work

18. Page 18
Other Considerations
Subcontracted Work
• Uninsured Subs are Bad News
 During an audit, if your insured can’t provide COIs for
the Sub, their GL will pick-up the exposure, adding
payroll to the audit, and the premium will be
assessed, to cover the uninsured Sub

19. Page 19
Other Considerations
Admitted vs. Non-Admitted Carriers
• Admitted Carriers are licensed and regulated
by the State
• Non-Admitted Carriers are not, presenting a
potential for insurer insolvency

20. Page 20
Other Considerations
Carrier Ratings
• Carriers are rated by both S&P and A.M. Best
• Ratings reflect the carrier’s financial strength
and ability to pay claims

21. NIP’s SitePro
®
An Overview

22. Page 22
NIP’s SitePro®
Overview
• Specialty insurance designed to service excavation & land-grading
contractors.
• One of the most comprehensive insurance programs available for site
preparation and land improvement contractors
• Many coverage enhancements tailored to their specific insurance needs.
• Competitive pricing for businesses of all sizes, from small contractors to large
multi-state operations.
 Minimum GL premiums as low as $5,000

23. Page 23
NIP’s SitePro®
Program
• Backed by strong financial carrier
 Rated "A" (Excellent) Financial Size IX by A.M. Best
• ISO Based
• Program is Admitted in All States
• Currently write in 44 states:
 Exceptions: Alaska, Hawaii, Idaho, North Dakota, Montana,& Colorado
• Accounts rated off payroll

24. Page 24
NIP’s SitePro®
Program
Program Highlights
A.M. Best “A” Rated (Excellent) Carrier (Company Size IX)
GL Minimum Premium – $5,000
Competitive Rates
Superior Customer Service
ISO Based Program
Coverage Enhancements
Blanket Additional Insured – ongoing &
completed operations
Per Project Aggregate
Blanket Wavier of Rights
Employee Benefits Liability
Limited Jobsite Pollution
Silent on Subsidence
EPLI (Employment Practices Liability
Variety of Direct Bill Payment Options
Ineligible Exposures
Accounts subcontracting more than 40% of work
Accounts performing work as a Paper Contractor
Underground storage tank removal, tank
construction, cleaning, or repair work
(except septic tank work)
Environmental remediation /
abatement contractors
Bridge Construction
Airport Paving

25. Page 25
NIP’s SitePro®
Program
• Third Party Services
• Risk Control - FARA
– Phone Surveys
– Physical Surveys
– Virtual Surveys
• Claims Services - AmTrust
– 24/7/365 Service
– Low Workload Claims Adjusters to easily manage claims
– Automated Claims System
• Premium Audit - OSI
– Physical Audits
– PIVOT Audits
– Phone Audits

26. Page 26
Submission Requirements
• Need complete submission, to review all risks:
 Completed ACORD application
 Completed SitePro Supplemental Application
 3 Years plus 1 Current Year of Currently-Valued, Hard Copy
loss runs for all lines of business being considered
 Current Job Listing and MVRs (ability to quote subject to)
• Common Declinations / Ineligible Exposures
• One-man operations/
owner-only operations
• Ground-Up construction
• Environmental
remediation / abatement
contractors
• Bridge Construction
• Airport Runway Paving
• Property / Inland Marine
in Florida
• NYC 5 borough work
ineligible
• Demo, over 1 story

27. Summary

28. Page 28
Summary
SitePro provides
• Outstanding coverage, tailored to specific needs of site
improvement contractors
• Strength and reputation of AmTrust North America1
• Backed by 20+ years of experience in providing specialized
programs tailored to the unique needs of select classes of
business
• Stability through all market cycles
• NIP awarded “Best Practice Designation” by TargetMarkets
1 Rated “A” (Excellent) Financial Size IX, by A.M. Best

29. Questions?

30. Thank You!
FOR MORE INFO
Goretti DeSousa
gdesousa@nipgroup.com
(800) 446-7647 x 659