Liability Insurance Initiative Reaches a Critical Phase - 7/19/2004 - Insurance Lawyers Taxes

Liability Insurance Initiative Reaches a Critical Phase

As the price of GLI has risen and the scope of coverage diminished, builder members have made it clear that they want NAHB to help solve the growing GLI crisis. In response, NAHB has partnered with Marsh, the insurance and consulting firm, to research the risk management needs of the residential construction industry and to develop new, cost-effective GLI products for home builders.

As part of that effort, NAHB and Marsh have sent a mail piece to 55,000 builders, remodelers and trade contractors asking them to complete an insurance survey and to send a consent letter to their insurance carrier giving the carrier permission to share loss information with Marsh.

“It’s time for our builder members to take action,” said NAHB President Bobby Rayburn. “If you’re seeing your GLI costs rise by thousands of dollars, or you know that it’s getting harder to find effective GLI coverage in your state, then it’s in your interest to take half an hour to fill out the survey and send in the consent letter.”

Builders can turn to their insurance agents for assistance in completing the surveys and gathering their GLI policy information, Rayburn said.

Builder, remodeler and trade contractor members who did not receive the mailing can find the survey, model consent letter and other GLI-related materials at www.nahb.org/gli. “I strongly encourage all builders, remodelers and trade contractors to participate in this initiative, regardless of whether they received the mailing,” Rayburn said.

NAHB’s partnership with Marsh is intended to accomplish three goals:

• Provide an accurate national picture of the loss experiences of the residential construction industry through comprehensive data collection
• Utilize actual loss experience and exposure data to develop new GLI products for NAHB members
• Structure any new GLI products so that they can be purchased from state-licensed local insurance agents with whom NAHB’s members already do business

“The information gathered from members will be held in strict confidence and will not be seen by NAHB members or staff,” Rayburn said.

To obtain a copy of the GLI survey and consent letter, click here; or e-mail Blake Smith or call him at 800-368-5242 x8583. If you have specific questions about the data collection initiative, contact Clayton Traylor at x8490 or Brett Diggs at x8453.

If you would like to speak with someone from Marsh, contact Cheryl Meyer at 716-843-4517. All completed surveys, consent letters and related materials should be sent to Marsh, Builder Solutions, c/o Jessica Hatch, 1166 Avenue of the Americas, New York, NY 10036.