-- New Insurance Program Increases Competitive Advantage for Steel-Framed

Construction --

    WASHINGTON, Aug. 16 /PRNewswire/ -- The Steel Framing Alliance (SFA)
 and Arthur J. Gallagher & Co. (Gallagher Construction Services), the fourth
 largest insurance broker worldwide, today launched a comprehensive
 insurance program that provides west coast builders who use steel framing
 with as much as 50 percent discounts on a broad range of insurance
 products. This program makes steel framing more competitive with other
 construction materials. Named "STEEL Advantage," the program is
 specifically provided for cold-formed steel framed construction projects,
 including single-family tract, low-rise multi- family, mid-rise commercial
 and mixed-use structures. It is being launched initially on the west coast
 and will be rolled out in other markets at a later date.
     "High performance in severe weather conditions, less maintenance and
 termite and mold resistance are some of the reasons why steel framing has
 come to the forefront as one of the most feasible alternative building
 materials for residential and commercial construction," said Larry
 Williams, president of the Steel Framing Alliance.
     With STEEL Advantage SFA and Arthur J. Gallagher & Co. are enhancing
 the level of insurance products available in the market. Gallagher has held
 negotiations with major insurance providers to create a suite of products
 including General Liability, Workers Compensation, Builders Risk,
 Commercial Property, and Surety. The new program will include added
 coverage enhancements, such as Earthquake or Flood, along with premium and
 rate discounts for volume and/or safety commitments. Gallagher will also
 provide Subcontractor Certificate Monitoring & Compliance services,
 contract review, and seminars for Mold Awareness and Prevention, to name a
 few.
     "STEEL Advantage is a unique insurance and risk management services
 offering because it provides builders and consumers with a significant
 incentive for using steel framing in construction projects," said Charles
 J. Specht III, Area Vice President, Gallagher Construction Services.
 "Insurance pricing can fluctuate tremendously depending upon many key
 factors, such as the period of time for project completion, materials used
 to build the structure, skill level and safety of laborers installing the
 product, the likelihood for future structural claims and lawsuits, etc. The
 risks associated with all of these factors are greatly reduced when
 builders use steel framing."
     On projects where steel framing is used for all of the structural
 elements, general contractors or owners and developers could potentially
 realize:
     -- Up to 50% premium savings on General Liability when compared to wood
        framing and concrete
 
        On a project with $10 million total construction value and a one-year
        build cycle, minimum annual premiums would typically be:
 
          * Cold-formed Steel -- $20,000
          * Wood and concrete -- $40,000
 
     -- Up to 40% premium savings on Builders Risk Insurance when compared to
        wood framing and concrete
 
        On a project with $10 million total construction value and a one-year
        build cycle, minimum annual premiums would typically be:
 
          * Cold-formed Steel -- $10,000
          * Wood and concrete -- $16,000
 
     -- Approximately 15%-60% savings on Workers Compensation premiums when
        compared to wood framing and concrete
 
     -- Approximately 5%-15% savings on Surety/Bonds when compared to wood
        framing and concrete
 
     -- Approximately 15%-25% savings on Commercial Property when compared to
        wood framing and concrete
 
     -- On average, General Contractors and Owners would pay 15% less for all
        premiums using this program compared to similar coverage that may be
        made available through other/competing brokers.
     "In the insurance provider's underwriting and thought process, the
 decreased 'risks' associated with steel framing equate to considerable less
 costs in claim/lawsuit dollars over the course of a 10-year period. In
 exchange for these decreased risks, we have successfully negotiated with
 insurance providers to offer significant premium savings and broader policy
 terms to our 'steel' clients. It is a win-win situation for all sides when
 steel framing is used in the construction process," explained Specht.
     Through the STEEL Advantage program, Gallagher will also be equipped to
 provide Zurich's Builders Risk Insurance, an innovative insurance program
 that recognizes steel framing as superior construction and significantly
 slashes premiums for steel-framed products when compared to combustible
 structural framing materials. The program is underwritten by Zurich North
 America Small Business and administered by Zurich Insurance Services, the
 largest provider of builders risk insurance products in the United States.
     "We continue to provide incentives and resources to both homebuilders
 and homebuyers to consider superior alternative construction materials like
 steel. This new suite of insurance products demonstrates our commitment to
 the building community," added Williams.
     For more information on STEEL Advantage and resources on steel framing,
 visit http://www.steelframing.org. Also, contact Charles Specht of Arthur
 J. Gallagher & Co. at (800) 568-0833, ext. 154, charles_specht@ajg.com, or
 (559) 916-2649 (cell).
     About the Steel Framing Alliance
     The Steel Framing Alliance (SFA) is a market-development organization
 established and funded by the steel framing industry, and charged with
 enabling and encouraging the growth of cold-formed steel framing in both
 the residential and commercial construction markets. In addition to
 education and training, research and solutions development, and supporting
 the development of codes and standards for steel framing, SFA activities
 include marketing and promotion, technical services, and special
 initiatives that continue to improve the competitive position of steel
 framing. Headquartered in Washington, D.C., the SFA has more than 1,000
 corporate, organizational and individual members representing the full
 spectrum of trades, professions and virtually every product category within
 the construction industry. To learn more, visit
 http://www.steelframing.org.
     About Arthur J. Gallagher & Co.
     Arthur J. Gallagher & Co. (NYSE:   AJG), an international insurance
 brokerage and risk management services firm, is headquartered in Itasca,
 IL, has operations in seven countries, and does business in 120 countries
 around the world through a network of correspondent brokers and
 consultants. Gallagher is traded on the New York Stock Exchange under the
 symbol AJG.
 
 

SOURCE Steel Framing Alliance

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