A prominent General Contractor/Construction Manager recently took advantage of the availability of limits and the overall soft market. The expiring limits were $2 million/$2 million for Professional/ Pollution coverage. Considering the number of projects and the type of work done – as well as some previous claims activity – the decision was made to increase their limits.
The policy was renewed for $10 million/$10 million with the incumbent carrier, who now provides the catastrophic coverage that was lacking previously. The premium nearly doubled but for a four-fold increase in coverage! This demonstrates the following: