Colemont Insurance Brokers is very pleased to introduce to the market our new exclusive program designed to plug serious coverage gaps for your subcontractor clients. This Colemont-designed product provides subs with their own coverage, and limits, for their work on projects covered separately by wraps. Our coverage offers very broad DIC coverage extensions not readily available in the marketplace, and can provide retroactive coverage to your clients for situations where aggregate erosion of the wrap’s limits is a concern.

Example of How RetroWRAP DIC™ Works:

A developer has a wrap policy on a 100-unit single family tract project with limits of 2/2/2 and defense costs included in the limit, and the entire project was completed 5 years earlier. The policy covers the project term with 10 years extended completed operations. In the first 20-home phase of the project, there was a roofing problem and the resulting loss exceeded the $2 million aggregate under the completed operations portion of the wrap.

After the full payment of the roofing loss and the total exhaustion of the wrap aggregate limit, a home in the second phase burns to the ground due to an electrical problem traced directly to the electrician that did that work. The physical damage loss from the fire is $400,000. Because the wrap limits are exhausted and the electrician’s standard “practice” policy excludes wrap work, the electrician has a coverage gap. He could be forced out of business if he is unable to pay the $400,000 loss out of his own pocket.

Had it been purchased, RetroWRAP DIC™ would have provided coverage for the work performed by the electrician with the $400,000 loss.

RetroWRAP DIC™ Provides:

• Limits for subcontractors who have participated or will participate in a residential or commercial wrap project where the wrap aggregate limit could be exhausted.
• Retroactive coverage for subcontractors that were involved in wrap projects completed
  as many as seven years ago.
• Coverage on a primary basis, subject to a SIR, for items typically excluded from most wrap policies – including off premises exposures, subsidence, EIFS, damages during construction, and many other hazards.
• Protection for designated named insured as a subcontractor for work performed by them
  on specific wrap projects.
• Peace of mind in the form of “sleep at night” insurance for subcontractors that have participated in wrap projects.
• Retail agents the opportunity to fill holes in coverage and ultimately protect their errors
  and omissions liabilities.

RetroWRAP DIC™ Policy Highlights:

• Options to cover up to 11 coverages not usually covered in most wrap policies.
• Minimum premium of $10,000.
• Limit options of $250,000, $500,000, or $1,000,000 (defense inclusive).
• 100% minimum earned premium upon binding.
• No audits on any of the retroactive policies.
• Ability to go as low as first dollar coverage.
• Any type of residential project is eligible – single family, condominiums, or town homes.
• Available in 48 states (excluding Rhode Island & Delaware).
• Multiple projects can be written on a single policy.
• Coverage with an A+ rated insurer.
• Colemont has binding authority for this program- ensuring excellent service to you.

Coverage Extensions Available Include:

• Off premises
• Warranty/service work
• EIFS
• Subsidence
• Electromagnetic field
• Full statute of limitations (in order to plug any gaps for wraps that were written with a limited term of less than 10 years)
• Pressure treated wood
• Damages during construction
• Action over claims
• Professional liability
• Medical payments

RetroWRAP DIC™ Does NOT Provide:

• Coverage that contributes with any wrap policy or any other policy that acts as primary insurance.
• Contribution to a subcontractor’s SIR or deductible under a wrap policy or any other policy.
• A separate defense fund for any claim covered by a wrap policy or any other policy, either on a primary or quota share basis.
• Additional insured protection for any person or entity other than the designated named insured.
• Bindable quotes without full and complete underwriting information.   The retroactive capabilities of this contract can cause quotes to fluctuate depending on the characteristics of each account. Past or ongoing losses, the age of the job, the location and nature of the job, etc. can all impact pricing.  We do require our own application to quote your account.

Call your Colemont broker today to learn more about this exciting new product.