SCHAUMBURG, Ill., Jan. 5, 2021 /PRNewswire/ -- As severe
weather events grow in frequency and severity across the U.S., the
risk of construction delays not covered by traditional Builders
Risk insurance policies intensifies. To help fill this gap, Zurich
North America has launched Construction Weather Parametric
Insurance for project owners and contractors.
"These innovative products demonstrate why Zurich has been a trusted leader in the
construction space for 25 years."
Traditional insurance products such as Builders Risk policies
offer valuable protection for financial losses related to weather
events, but only when those events cause physical loss or damage to
a project. Zurich's Construction
Weather Parametric policy doesn't require physical loss or damage
for a claim to be paid.
Instead, claim payment is based on predetermined weather events
occurring in the project's location, such as extreme rain, wind or
temperatures (hot or cold). Any of these perils can cause
project delays, resulting in severe financial losses, even when the
project doesn't sustain physical damage. The coverage is highly
customizable for the buyer —contractor or owner — with options to
help optimize cost-effectiveness for customers who face varying
consequences if a project is delayed. An owner, for example, could
incur heavy revenue losses from operating profits that aren't being
realized. A contractor who misses project deadlines could suffer
penalties, including liquidated damages, as well as incur
additional expenses.
"We are proud to offer this solution as a complement to our
newly enhanced suite of Master Builders Risk and Project Builders
Risk policy forms, which include flexible reporting options, as
well as several new coverage enhancements attuned to today's
evolving marketplace," said Kelly
Kinzer, Head of Construction Property for Zurich North
America.
"These innovative products demonstrate why Zurich has been a trusted leader in the
construction space for 25 years. The Zurich Construction team is
committed to putting our extensive knowledge, experience and
financial strength to work for contractors and owners."
With Zurich Construction Weather Parametric Insurance, the
perils, thresholds, limit, deductible and coverage duration can be
individually tailored to meet the needs of the buyer. The threshold
options for each peril are based on historical weather data at the
location of the project. Parametric customers can purchase coverage
for one or more weather perils, and coverage duration can be
tailored to peak season for the weather risk and pegged to
milestones in the construction schedule.
A simplified claims process helps expedite payouts. Because
payment is based on objective weather data, there is little need to
investigate the loss. Coverage responds as long as the trigger
event occurs, the project is impacted within the agreed-upon dates,
and the deductible has been met.
To learn more, read "Weather Parametric Insurance for
Construction: Building Resilience for the Future."
About Zurich
Zurich
North America is one of the
largest providers of insurance solutions and services to businesses
and individuals. Our customers represent industries ranging from
agriculture to technology. Zurich North
America is part of Zurich Insurance Group, a leading
multi-line insurer that serves its customers in global and local
markets. Read more here.
Visit us on social media: LinkedIn and Twitter
View original content to download
multimedia:http://www.prnewswire.com/news-releases/zurich-north-america-launches-construction-weather-parametric-insurance-301201125.html
SOURCE Zurich North America