Ironshore modifies construction cover to address M&A risks
Bermuda-based Ironshore Specialty Casualty has modified its transition protection policy form to address contractual exposures related to an organisational merger or acquisition (M&A) specific to the construction industry.
The product provides coverage for abrupt and accidental property damage or bodily injury arising out of work completed by a construction company that occurred prior to the closure of the corporate transaction.
"Ironshore's enhanced construction product responds to unforeseen risks that may arise following the completion of a successful transition," said Ben Beauvais, lead at Ironshore’s construction industry practice.
According to Ironshore, the construction companies typically have contractual requirements to obtain insurance coverage for work completed prior to a merger or acquisition.
Construction transition protection is offered for limits of up to $2 million per occurrence on a primary basis and up to $10 million on an excess basis. Coverage is underwritten on a claims-made basis for an injury period stipulated within contractual documentation or up to a maximum of 5 years to cover potential liabilities resulting from past operations.
Beauvais added: "Construction transition protection will benefit those clients that require coverage to satisfy contractual requirements when the entity’s liabilities are not acquired under the terms of the agreement."
