Aon Construction Services Group has secured an offering for up to $100m in limits to address contractual liabilities such as force majeure events, liquidated damages and performance coverage.
The company said that the contractual liability policies are designed to indemnify another person or entity for actions. The coverage includes mitigate risk of damages resulting from performance shortfalls or delayed completion of a construction project.
According to Aon, the contractual liabilities capacity offering can be placed with markets in the US, Bermuda, London and Europe, and includes an appetite related to type of work involved, geographic location or responsible entity.
In addition, the purchase of coverage may be handled on a pooled or blanket basis by a client with an understanding of contractual exposures and willingness to participate in risk with retained amount.
The company said that it has invested in a team led by Mark Watson to focus on engineering, analysis and placement of coverage. The team consists of Gerald Fox and Drummond Abernethy in the UK and Todd Rowland and Vincent Zegers in the US.
Peter Arkley, chairman and CEO of Aon Construction Services Group, said: “Although contractual liability exposure has remained high, capacity for these coverages had virtually disappeared with the economy’s downturn.
“Aon is proud to be the exclusive broker able to offer up to $100m of contractual liability offerings, and this product development is indicative of the distinct market advantage our clients have come to expect when partnering with our experts.”