APP Pay-as-you-Sell Project and Wrap Policies

While the residential and commercial construction market is improving, residential builders, developers and small commercial contractors (“Contractors”) continue face the challenge of determining the most favorable time to proceed with construction starts and in determining the length of time between the completion and sale of homes.  In response to this problem, Insurance Specialty Group, LLC (“ISG”) launched our annual-project policy last year as a solution that provides extended products-completed operations coverage for a multi-year policy without having to pay the large up-front premiums that can be associated with standard multi-year project policies.

ISG is now excited to launch our new Pay-as-You-Sell Project or Wrap Policy.  This product benefits builders through aligning the timing of insurance costs with the timing of homes sales.  Using ISG’s Pay-as-you-Sell, Contractors pay their completed operations premium on a per structure basis as each structure is sold.  

Here are the basics on how APP Pay-as-you-Sell works:

• Proposals will include a premium for premises liability coverage and a rate for products-completed operations coverage.
• Premises Liability coverage will be flat and not auditable and will be collected at binding.
• Products-completed operations coverage will calculated using a rate per $1,000 of home sales price.
• Products-completed operations premium is not paid until a home is sold and reported to ISG.
• Products-completed operations coverage is not provided until a home is sold and reported to ISG (and meets policy requirements).
• ISG will issue an endorsement to the policy acknowledging products-completed operations coverage for each home that has been reported.
• Policy periods can range from 12 to 36 months.
• Standard ISG coverage forms apply.
• Available on non-admitted paper with limits up to $2M / $2M / $2M.

APP Pay-as-you-Sell Project and Wrap Policies provide class-leading protection with the pricing flexibility needed by Contractors to be successful in the continually challenging construction market.