Construction
Depending on where your project is domiciled, residential projects present one of the most challenging liability insurance issues for developers. This is an area that is constantly evolving, with new court rulings, legislation and restricted insurance capacity. To control your costs, you need to work with risk management experts who understand the legal issues, know how to mitigate your risk and have global access to insurance markets.
Most insurance brokers wait until your project is at the bid stage and then simply try to sell you a general liability insurance product that may turn out to be quite expensive. Other ancillary coverage needs of the project are often given minimal importance.
At SilverStone Group, our approach is different. It is our intention to serve as your risk manager, not just your insurance broker, throughout the life of the project — even after your ownership interest ceases. We want to work with you at the design stage of your project to carefully plan and draft the necessary agreements to protect you from lawsuits, especially those resulting from construction defects. We will help you structure a project-specific, comprehensive insurance program to recapture as much cost as possible from other entities that have financial interest in the project. Areas of coverage include:
- Owner-Controlled Insurance Program (OCIP) / Wrap-Up
- General & Excess Liability Only (including Homeowners Association)
- Workers’ Compensation & General Liability
- Professional Liability (Design Errors & Omissions)
- Tail Coverage up to Statute of Repose
- Single Project or Rolling Wrap-Up Plans
- Builders’ Risk
- Directors & Officers Liability for Homeowners Association
Pricing Advantage
We have established an exclusive general liability facility to insure projects in certain states. The program can provide significant premium savings for projects that qualify. Our up-front risk management service is designed to help you meet the requirements of the program. SilverStone Group also provides alternative risk financing options using our own captive insurance company. The potential pricing structures include:
- Guaranteed Cost
- Finite Risk
- Captive Insurance Company
- Loss Sensitive Multi-Project Program
For OCIPs and builders’ risk, our corporate access to domestic markets, as well as those in London and Bermuda, assures our clients that they will receive the best pricing and coverage options available in the world.
Advantages of Owner-Controlled Insurance Programs
- Owner negotiates and controls the terms, conditions & pricing of the policy
- Consolidation of premium improves purchasing power
- Owner realizes full value of contractor bid credits
- Transparency — no hidden financial motives of the general contractor
- Reduces exposure to litigation amongst the project participants
- You “own” & control the policy (due to long-term exposure)
- Improved claims & safety management
Permanent Property
The coordination of coverage for “in-progress” and completed projects, especially when phased completion dates are involved, is an important aspect of our service. We have “dovetailed” a permanent property and general liability program to competitively cover your completed projects as they roll out of the builders’ risk program.
Converting apartments to condominiums is a growing trend. If you are controlling the conversion, we have special programs to cover the liability issues. If you are selling the apartment property and the new owner will control the conversion, we can help you with contractual risk transfer and an insurance product to cover your long-term liability after the sale.
We currently insure more than 10,000 properties throughout the United States, including more that 100,000 apartment and condominium units. Our access to property and liability insurance markets is unparalleled for Condominium Homeowners Associations and apartment owners.
