Annual Meetings-Lessons from Losses moderated by Ron Castellanos, Selective, - Emily Willis, Markel, on Contractors Equipment and COP

Lessons from Losses moderated by Ron Castellanos, Selective, - Emily Willis, Markel, on Contractors Equipment and COP

Pdf Summary

The document discusses a project involving a high-valued dwelling in a suburban area near a major city. The project initially had a TIV of $3,500,000 with a construction timeline of 18 months but faced changes like additions and material upgrades that increased costs and extended the timeline to 55 months. Issues arose from changing the construction materials, leading to underwriting concerns and structural risks. The project ultimately suffered a significant loss due to a fire ignited by welding works in the new addition's stairwell, causing a claim payout of $5,800,000. Delays in completion and supply chain shortages further impacted the project. Lessons learned from the losses include the importance of implementing a hot work program, confirming PPC, underwriter training, and understanding morale hazards. The Inland Marine Underwriters Association (IMUA) provides educational and informational resources for the commercial inland marine insurance industry. The document highlights the complexities and challenges faced in underwriting and claims handling processes, emphasizing the need for thorough risk assessment and mitigation strategies in construction projects.

Asset Caption

Presented by:
Emily Willis, Markel, on Contractors Equipment and COP

Keywords

high-valued dwelling

suburban area

major city

construction project

cost overruns

fire damage

underwriting concerns

supply chain shortages

risk assessment

construction insurance