ISG has underwritten more then $700 million of CGL premium on construction accounts since 2003.  ISG is proud to offer the Asset Protection Program CGL policies in all states except New York, Alaska, Nevada and Hawaii.

Please contact an ISG Underwriter for more information.  Contact information can be found here.

A custom home builder, building million dollar homes in Nevada, always conducted an independent geotechnical investigation on the lots purchased from land developers.  After approximately four claim-free years, the builder received a claim on two of the homes built, only eighteen months after being constructed.

One of the homes was reported to have severe structural damages, even after the pre-construction geotechnical investigation had shown 97% soil compaction.  Unbeknownst to the builder, below the 3 feet of structural fill on the lot, there was 40 feet of poorly compacted fill that contained extensive pockets of expansive clay. During the analysis of the home’s damage, the engineer concluded that the home could experience additional settlement as great as 1.5 feet, aggravating the home’s already racked doors, and cracked drywall and stucco.

Fortunately for this builder, the home was enrolled in the 2-10 HBW Structural Home Warranty program.  Structural and cosmetic repairs totaled well over $200,000. The builder’s business survived and the homeowner’s home was repaired in large part because of the structural warranty provided by 2-10 Home Buyers Warranty.

2-10 HBW’s full article

AmTrust Third Quarter 2012 Financial Overview

Per the report’s executive summary, “California is the undisputed heavyweight champion of the consumer class action.”   “Its plaintiff-friendly laws spur ridiculous lawsuits against companies that sell products ranging from breakfast cereal to bagged walnuts.

“California’s small businesses have been under siege from trolling disability-access lawyers and their professional plaintiffs who look for technical rules violations, then demand thousands of dollars to settle.”

Contact ISG to learn more about how our insurance and risk management products can protect builders from ‘judicial hellholes.’

View the full article at BusinessInsurance.com 

Please contact ISG Underwriting with any specific questions or concerns.

Alabama Tier 1 :  Baldwin, Mobile

Louisiana Tier 1:  Assumption, Cameron, Iberia, Jefferson, Lafourche, Orleans, Plaquemines, St. Bernard, St. Charles,   St. James, St. John Baptist, St. Mary, St. Tammany, St. Martin (that part being south of Iberia), Terrebonne, Vermilion

Louisiana Tier 2 :  Acadia, Ascension, Calcasieu, East Baton Rouge, Iberville, Jefferson Davis, Lafayette, Livingston, St. Martin (that part being north of Iberia), Tangipahoa, Washington, West Baton Rouge

Mississippi Tier 1 :  Hancock, Harrison, Jackson

Mississippi Tier 2 :  George, Pearl River, Stone

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.

Overland Solutions Inc. will conduct premium and risk management audits for all non-admitted policies at no cost to the insured.  This process will begin with all policies expiring after July 2012.  Insureds will be contact by OSI with a letter followed by a phone-call from the auditor.

Premium & Compliance Audits

All non-admitted policies will require a final premium adjustment based on a final audit.

• All multi-year policies will be audited once by OSI, at the end of the final year.
• Audits for policies with a premium of less $25,000 will be conducted via an OSI Telephone Audit.  No mail audits will be allowed.
• Audits for policies with GL premium of $25,000 or greater will require a physical (on-site)  premium audit.

Audits will include a review of the insured’s gross revenue during the policy period and compliance with certain policy requirements as outlined in the applicable Subcontractor Requirement Endorsement (see form ISC-SRE-00_).

If OSI is unable to conduct the audit as a result of an uncooperative insured, the audit will be completed assuming 150% of the exposure used at policy inception.

Return premiums will be refunded in accordance with applicable policy terms.

Loss Control Audits

Effective August 1^st 2012, ISG will begin conducting Loss Control Audits using the attached “Loss Control Survey Form.” The Loss Control Audits will also be performed by OSI.  Audits frequency will be determined using the premium/loss thresholds shown below:

• Initial evaluation - Any project policy with a premium of $50,000 or greater.  Initial evaluations may include a job-site visit.

• Ongoing Reviews
  • $50,000 to $100,000 in premium:   Conduct a re-evaluation every other year.
  • $100,001 to $300,000 in premium or any insured with a loss ratio equal to or greater than 60%:  Conduct an annual re-evaluation.
  • $400,000 + in premium:  Conduct a re-evaluation every quarter.

The confidence of U.S. builders has risen seven of the past nine months and has reached a five-year high.  Many continue to take this as a sign that the housing market shows continued improvement.  June’s builder sentiment index (from the National Association of Home Builders/Wells Fargo) hit a reading of 29, which is the highest seen since May 2007.

Click here for the full ajc.com article.

Visit us at Booth #5532 to learn more about how ISG and 2-10 HBW can help you sell more homes with less risk.  See you in San Francisco!