When writing decennial liability insurance as an underwriter, there are several considerations that need to be taken into account. Here are some of the key factors to consider:
- Project Type and Location: The type of construction project and its location are critical factors to consider when underwriting decennial liability insurance. Different construction projects may carry different levels of risk, and different regions or countries may have varying building codes and standards. Therefore, it is important to evaluate the risk level of the project and the location to determine the appropriate coverage and pricing.
- Contractor’s Experience and Track Record: The experience and track record of the contractor or builder is another important factor to consider when underwriting decennial liability insurance. Contractors with a proven track record of quality work and adherence to building standards are generally considered to be lower risk and may receive better pricing on their insurance policies.
- Building Materials and Design: The materials used and the design of the building or structure also impact the risk level of the project. Some materials and designs may be more prone to defects or issues, and these factors need to be taken into account when underwriting the insurance policy.
- Insurance Limits and Deductibles: It is essential to establish appropriate insurance limits and deductibles to ensure that the policy provides adequate coverage while also being financially viable for both the insurer and the insured.
- Claims History and Risk Management: It is important to evaluate the claims history of the contractor or builder and their risk management practices. Contractors with a history of frequent claims or poor risk management may be considered higher risk and may receive higher pricing on their insurance policies.
- Regulatory and Legal Requirements: In some countries or regions, there may be specific regulatory or legal requirements related to decennial liability insurance. It is important to ensure that the insurance policy meets all regulatory and legal requirements to avoid any potential issues in the future.
Overall, underwriting decennial liability insurance requires a thorough evaluation of various factors related to the construction project, the contractor, and the insurance policy. By carefully considering these factors, underwriters can establish appropriate coverage and pricing that balances the risk and financial viability of the policy.
Chief Underwriting Officer