Contego Underwriting, a specialist re/insurance provider to the international construction and engineering markets, and part of Pen Underwriting. has launched three-year policy periods on all new lease hire and finance schemes in Latin America.
The move follows Contego’s announcement earlier this month on the opening of a new office in Miami, to best serve Latin American clients.
Traditionally, insurance providers specialising in international contractors’ plant and machinery have only been able to provide cover on a 12-month basis on lease hire and finance schemes. However, local cedants in Latin America are increasingly requesting policy terms of up to three years in order to match the finance arrangements now provided on new items of plant and equipment, said Contego.
The new wording for Contego Underwriting’s extended cover has been designed to meet the specific challenges arising from long-term leases faced by hire companies and their clients. Its policy is available on all new machinery purchased via leasing companies or finance houses/banks with pre-set rates, deductibles and warranties in place.
Anthony Willsher, director and underwriter at Contego (now based in Miami), said: “We pride ourselves on being responsive to the fast-evolving needs of our ultimate clients and providing clarity of cover. Devising a three-year policy period for all new lease hire and finance schemes in Latin America — which meets a real and growing demand to match longer term finance arrangements — is a great example of us delivering on that service promise.
“In addition, our dedicated cover is tailored to address the specific exposures faced by both lease holder and end client, and ensure these are properly evaluated and controlled. Therefore both parties simultaneously secure additional benefits via our new policy.”
Benefits for the lease provider include: coverage for all machine types and wide enough to cover all exposures; a policy period which matches the lease period; high policy limits backed by quality insurance/capacity; and leased items that are immediately covered.
The insurance policy also cannot be cancelled without knowledge of the leasing company and mechanism for early identification of problem clients means they can be ring-fenced to ensure rest of scheme unaffected.
Contego Underwriting, Insurance, Reinsurance, Pen Underwriting, Anthony Willsher, Latin America