NEW YORK, Sept. 13, 2011 /PRNewswire/ -- XL Insurance, the global insurance underwriting operations of XL Group plc (NYSE: XL), today unveiled ConstructAssure, its new subcontractor default coverage to protect General Contractors from financial losses that may result when their subcontractors fail to perform contracted services.
According to Gary Kaplan, President of XL Insurance's North America Construction unit, "Subcontractor defaults can result in missed deadlines and significant project delays, putting General Contractors' profits, business relationships and reputation at risk. Until now, contractors have had few choices to protect themselves when one of their subcontractors fails to perform. Today, we're excited to add another insurance option to the market."
"Risk management is more critical than ever in the current construction market. With this new market alternative, we are well-equipped to help contractors protect their profits, improve business practices with subcontractors and keep their project on time and on schedule," said Jason LaMonica, Vice President and Profit Center Head of XL Insurance's Subcontractor Default business. "We deliver our insurance coverages with risk engineering and claims services that help our clients manage their subcontractor risks upfront with help in establishing best practices in subcontractor prequalification, selection, payment and other areas of project management."
ConstructAssure offers coverage for both direct and indirect costs incurred by General Contractors when a subcontractor defaults. The coverage is available with limits of liability up to $50 million per loss and $150 million policy aggregate. ConstructAssure is specially designed for general contractors and construction managers with $75 million or more in annual subcontract costs.
"This coverage continues to build out our dedicated Construction risk management capabilities," Mr. Kaplan added. "Over the last year, XL Insurance has built a team of top Construction underwriting, risk engineering and claims talent. With our strong industry focus, we address your clients' construction insurance needs with high-quality products, like ConstructAssure, and deliver them with an equally high level of service that we have seen disappear in today's marketplace."
The XL Insurance companies provide surety, property, including Builder's Risk, excess and primary casualty, environmental, professional and other specialty insurance coverages to the construction industry. Coverages are accompanied by loss control and claims management services delivered by teams dedicated to construction risk management.
About XL Insurance
XL Insurance is the global brand used by XL Group plc's insurance companies and underwriting divisions offering property, casualty, professional and specialty insurance products throughout the world. More information about XL Insurance is available at www.xlinsurance.com. XL was formed in 1986 in response to the unmet risk management needs of 68 of the world's largest companies. This year, as XL celebrates its 25th anniversary, it remains the company clients look to for innovative insurance and reinsurance solutions for their most complex risks. XL Group plc, through its subsidiaries, is a global insurance and reinsurance company providing property, casualty, and specialty products to industrial, commercial, and professional firms, insurance companies and other enterprises on a worldwide basis. More information about XL Group plc is available at www.xlgroup.com
SOURCE XL Insurance