Ironshore has started marketing new coverage for construction project owners.
The insurer’s Specialty Casualty division will sell the insurance – dubbed Owners Protective Professional Indemnity. Targeted to specific construction projects, the insurance will indemnify a project owner for first party loss from contracted design professionals and builders negligence when damages exceed the existing professional liability insurance policy limit.
The new coverage will also include:
- Defense reimbursement of third-party claims against the owner due to negligence from professionals hired by the owner for the specific project.
- Excess layer protection above the underlying self-insured policy limits.
- Dedicated limits for specific projects up to $15 million.
Ironshore said its coverage will supplement the builder and design professional coverage if underlying limits are exhausted due to adjudication, mediation or settlement. Coverage above the self-insured retention limit, applies if the subcontractor professional or builder liability coverage lapses for whatever reason.
As well, the policy is designed to respond even if the owner has executed a contractual limitation of liability with the design professional or builder.