New Programs, Flexibility Help Contractor Segment Rebuild
Amy O’Connor | Insurance Journal
Coventry Risk Specialty, a managing general agency that focuses on the construction industry, launched a “pay as you go” product for residential and commercial contractors with Prosight Specialty Insurance in June to address that issue. The new Builders Reporting Policy (BRP) provides additional cash flow for contractors and builders with a low deposit premium and the option to defer payment for completed operations coverage and structural defect warranty coverage until the time of sale. The coverage is also available for builder’s risk.
The program targets residential and light commercial general contractors and developers for designated projects and wrap-ups. Builders have the option to only pay the premise operation premium at policy inception and then upon the sale of the scheduled home or unit, the builder can use the funds from the sale to pay for the completed operations coverage, which is provided on a per structure basis.