Topic Thread

1.  General Liability Insurance - Spray Applied Fireproofing

Posted 10-13-2017 08:20
I was wondering if anyone does spray applied fireproofing and if so if they would be willing to discuss insurance with me.  Ive been running into a lot of issues lately with carriers classifying the work as "specialty" and not wanting to entertain higher limits because of that.  We currently carry 2M G.L. with a 1M umbrella but lately Ive had a lot of contractors pushing for a 5M umbrella. 

So far Ive been able to get them to waive the 5M umbrella requirement by explaining the specialty nature of the products and the limitations we have in increasing the limits.  However I am sure that this is going to continue to be an on-going issue that some day soon may not be simple to get around.  I also am sure that there is someone out there writing a 5M umbrella policy for some of the larger companies that also do spray applied fireproofing and was hoping someone would know what carrier that is.

Thank you 

Jess M. Saylor Jr.  
734 347 8703

2.  RE: General Liability Insurance - Spray Applied Fireproofing

Posted 10-13-2017 17:00

It is not because you are a "specialty" contractor, it is because you are a "fire protection" carrier.  Your exposure is one of severity not frequency.  An umbrella carrier loves to write contractors that are frequency prone because the limits are difficult to penetrate.  Severity exposures are a greater challenge.

I do not know anything about the broker you utilize, but most likely you have to look at a surplus lines carrier or a program underwriter.  A regular agent will not often know what special programs there are.  I will to see if there are program businesses that write in your state and shoot you an email if you like.

Ronald Hicks CIC, CRIS, CRM
Vice President
Hicks Risk Managment Consulting
Mt Laurel NJ
(609) 314-4182

3.  RE: General Liability Insurance - Spray Applied Fireproofing

Posted 10-16-2017 09:09


Thanks for the email as well and the information.  Just to give you a little more information our company performs EIFS and spray applied fire proofing, both of which are difficult to get coverage on.  Right now because we have to maintain the EIFS coverage with no exclusions we already are in the surplus market.  I think the EIFS coverage may be the biggest issue driving this and why I keep being told by multiple agents that this is a "specialty" coverage issue.   We have been with 2 different agencies the past 4 years and they both have had the same issue finding anyone to write the excess higher than 1M and both have been told its because of the specialty nature of the work. The agency we are with now is a large agency with offices around the country and Im surprised actually that they cant find someone to look at this.  In fact this was one of the reasons that we made the switch after almost 30 years at the previous agency because we expected them to have additional resources and experience that could help facilitate getting someone to look at this with higher limits.  With that said though I think one of the driving factors is there are only 2 carriers that I know of that will write the G.L. for EIFS without exclusions and one of them is questionable on the coverage, which puts us in a pretty tight spot.

Im actually not sure how much of this is driven by the being a "fire protection" company because we actually are not a fire protection company.  Ive had conversations with the agent and the underwriters and they have programs for fire protection companies which would be someone doing sprinklers or fire protection systems and we do not fall under those classifications on the fire proofing.

Im going to reach out to the agent you gave me this week hopefully he has some different information or can point me to a carrier that would be interested in looking at this.

Thanks again for the response.

Jess Saylor
General Manager
Saylor Inc.
Ottawa Lake MI
(734) 347-8703