Project Loss Insurance
Construction projects involve a large amount of risk, even for the very best contractors. A sizeable loss on a project can lead to business impairment or worse: complete failure. Business failure means the loss of business assets and oftentimes personal assets as well.
Travelers Canada Project Loss Insurance (PLI) is designed to mitigate the risk of a catastrophic project loss, helping contractors emerge from the loss rather than succumb to it.
Managing catastrophic loss for construction projects.
SPEAKER 1: As construction projects continue to reach new heights, so do the economic exposures faced by construction companies. Bigger projects mean greater bottom-line risk.
Construction companies may be just one poor estimate, delinquent subcontractor or difficult owner away from financial devastation.
As a leader in surety, Travelers is introducing a progressive new product we call Project Loss Insurance or PLI. It’s an industry-first -- designed to help protect construction companies from a potential catastrophic loss. And only Travelers offers it.
Consider this scenario. Let’s say a critical construction error causes extensive rework, schedule delays and a project loss significant enough to threaten the viability of a construction company. Our analysis of past surety losses shows: this is just the kind of issue that commonly causes contractor failure.
With PLI, Travelers shares in the contractor’s loss once it exceeds the deductible – helping to reduce the financial impact. Allowing the company to recover and survive.
But without PLI? The company and its employees could lose the business they worked so hard to build.
Unforeseen risks like bad estimates, poor production, weather issues, subcontractor failure and more can jeopardize a construction business.
Travelers PLI can help construction companies keep reaching for new heights.
Text, Talk to your insurance broker about Travelers Project Loss Insurance today. Travelers Canada dot ca.
Who is this right for?
Coverage is available for all contractors and is not limited to current Travelers Canada Surety clients. This policy is designed to cover a broad range of contractors and situations including the following:
- General contractors
- Heavy civil contractors
- Trade Contractors
- Business Owners looking for Corporate and Personal Wealth Protection
- Employee Owned Companies (ESOP’s)
- Companies Considering Succession
Project Loss Insurance oﬀers contractors the ability to share the risk of severe project loss, including loss associated with the following, that may be difficult to insure, such as:
- Bad estimates
- Poor production
- Subcontractor failure/default
- Delay damages
- Price escalations
- Manufacturer/supplier failure
- And many more
- PLI was created as a risk-sharing solution for contractors to further protect their assets and ultimately help them build a better business for the long-term. Your partner, Travelers Canada, is standing with you in difficult moments.
- Project Loss Insurance can provide interim payments for an anticipated covered project loss during the life of the project.
- Through the underwriting process, PLI can help contractors improve ﬁnancial reporting and internal controls to better prevent (and control) catastrophic losses and improve overall operations.
To learn more about Project Loss Insurance, please contact your surety broker.
If you are a broker and would like to hear more about this product, please send an inquiry to: PLI@travelers.com.