President's Blog

Thursday, February 26, 2009

PROJECT SPECIFIC PROFESSIONAL LIABILITY INSURANCE

If you have a large construction project, Fenn & Fenn is one of the most experienced construction brokers with the capability of assembling the right insurance protection for your industrial, commercial or institutional project. We simplify your construction insurance experience at the same time providing the most appropriate insurance protection at the right price: backed by solid advice throughout the project.

For several years now choice for Project Specific Errors and Omissions has been limited. We are pleased to be able to announce that just as the rest of the marketplace seems to be “drawing in its horns” the Project E&O market continues to do the opposite. We have available markets starting at $10MM capacity. 

If you have a need for Project Specific Errors and Omissions Insurance, contact us now, we’d be pleased to help. 

Have a great day!

Simon Fenn, CIP
President

Wednesday, February 25, 2009

Contractors - Financial Stability of Insurers and Sureties is Critical in these times.

As an insurance broker Fenn & Fenn pays attention to the financial stability of Insurers and Surety companies and if you are a purchaser of or beneficiary of insurance coverage, you should too. 

In the Canadian construction industry it is not only the financial condition of insurers but also the sureties that you need to concern yourselves with, if you have an arrangement for contract surety bond services. 

A great reference tool to monitor your insurer/ surety financial shape is A.M. Best Company website http://www.ambest.com/ where you can look up almost any insurance company and review its financial status.  A. M. Best also has handy guides to help the layman understand their financial ratings. 

In the Canadian construction industry the stability of the surety company for bonding is also crucial as Public Works and Government Services Canada has a specific listing of acceptable Sureties. You can find this listing at this weblink: http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=14494&section=text#appL .

If you are a Contractor that often bids PWGSC or Defence Construction projects and your Surety is not listed, you are in jeopardy of being disqualified at the time you bid.

To avoid this, contact us at Fenn & Fenn at 905 836 6066.

Have a great day!

Simon J. Fenn, CIP
President

Friday, April 11, 2008

Builder’s Risk Insurance

Fenn & Fenn Insurance Practice Inc., is pleased to offer expertise based Builder’s Risk Insurance services through our Keystone Construction Services. If you are looking for dependable advice on your construction project(s) as well as correct insurance placement with broad coverage that meets or exceeds most financial institution and contractual requirements - contact us. Our professionals have worked with the construction industry for many years and are very familiar with the challenges faced by complex projects and contracts. We are well known among leading professional services firms with construction specialty practices.  We understand the special insurance requirements for the differing project delivery methods: stipulated sum, design build, public private partnership, etc. We take great care to marry your project risks to your insurance coverage. 

There is no limit to the size or type of project we can assist you with and our insurance partners are top rated financially by leading rating agencies.  Our experience ranges from less than $1MM to $2BN in project values and from basic Commercial and Residential construction to Energy, including Nuclear Power Plants.  We also have good working knowledge of LEED and Green Building Construction. 

Whether you are an Owner, General Contractor, Trade Contractor or anyone else with a building project, we are very likely your best resource and guide for construction insurance advice and coverage. We have in depth knowledge in OCIP (Owner Controlled Insurance Programmes), CCIP (Contractor Controlled Insurance Programmes), CAR (Construction All Risks) and CEAR (Construction Erection All Risks) insurance programmes. 

We also offer corresponding construction coverages including wrap up liability, environmental impairment liability, contractors’ pollution liability, project specific professional liability, ocean cargo, delay in start up and advanced loss of profits insurance.  Beyond this we also have significant experience with structural defects insurance, efficacy insurance and other specialty coverages.

We will transition your project seamlessly from construction to operational insurance as it draws to completion. 

I hope you will consider Fenn & Fenn Insurance Practice Inc. for your own construction project(s). 

Until next time.

Regards,

Simon J. Fenn, CIP
President. 

Wednesday, March 26, 2008

Understanding the true value of Business Insurance

Insurance is widely regarded as a “necessary evil” and often purchased out of necessity to satisfy the buyer’s client in a business transaction, rather than for protection. It is only when the insured business actually has a claim that the real value of the insurance “relationship” becomes clear.

When purchasing insurance the buyer should take into consideration several factors:

1) The premium/price.
2) The experience of the broker/agent to represent you.
3) The appropriateness of the coverage to protect against the insurable risks faced by the business.
4) The license status and financial stability of the Insurer.

Unfortunately I would guess that 80% of insurance buyers consider item 1 above and rarely take into consideration 2, 3 or 4. Here are some interesting facts from first hand experience:

a) The premium/price is not always what it may appear to be at face value. Please explore it closely and ask your insurance adviser how it may be affected upwards or downwards by features within the policy. This is after all a contract you are considering entering with the Insurer, you should read it and understand it.

b) The broker may place 70% or more household and personal automobile insurance plus coverage on several small businesses. It may not possess the knowledge required to advise you on your business insurance needs. If the broker is a personal friend, what will you do when you have a claim and you discover that your friend really did not put your coverage together properly as he did not understand the business risks you face?

c) Not all insurance policies are the same. Every policy contains conditions, limitations and exclusions that may eliminate or certainly reduce the coverage you feel you may have. Please make sure your insurance adviser explains your coverage to you properly as to how and why it suits your business’s needs.

d) Most insurers have to be either Provincially or Federally Licensed to conduct business in a Province/Canada. In very rare cases exceptions are made where coverage is not otherwise available domestically, subject to strict declaration procedures the broker is required to follow. Most insurers are also usually financially rated by a recognizable Rating Agency, such as A.M. Best Company or Fitch Ratings. It is important to review the insurer rating and if it is anything less than Best BBB+ for example, we suggest you ask more questions about the financial stability of the insurer.

e) If you plan on doing business outside of Canada involving the actual presence of your operations, assets or staff in another Country including the United States, your Canadian Insurer may not be permitted (or admitted) to do business in that State/Country. Usually foreign nations (including the United States) have specific rules and regulations governing insurance and failure to pay attention to these rules can lead to fines and/or imprisonment. Inform your insurance adviser if you intend to expand your operations into a different country so they can inform you appropriately.

There is far more that can be said under each of the subjects discussed here. Hopefully I have said enough to get you thinking about how you go about your insurance purchasing so that the next time you are looking for insurance on your business, you consider coverage, insurer financial stability and service as well as premium/price in your overall decision.

So be careful, the True Value of what you ultimately purchase is not represented by the premium/price you pay. In fact, you could pay a higher premium/price than the lowest proposed premium/price thinking you are getting better value, but in actual fact may be getting far less out of the arrangement.

Thanks for reading my blog, I hope it helps you.