Lexington Insurance Company, a Chartis company, has rolled out Lex FollowUP, a policy designed for the construction industry to assume the legacy financial risk associated with general liability self-insured retentions.
According to Lexington, the new policy will provide coverage for a policyholder’s self-insured retention (SIR) for incurred but not reported claims that may arise under certain scheduled insurance policies. The company has created a reverse follow form policy that follows the terms and conditions of those policies.
In addition, Lex FollowUP can be designed to cover loss portfolio transfers for known losses within the SIR policies. Lex FollowUP may be applied to up to 10 years of prior policies and a mix of annual ‘practice’ policies and project-specific policies, including wrap-up policies.
The company said that the new policy is available to contractors or developers/owners in the commercial or residential arena. It can be written in conjunction with Lexington policies, policies written by affiliated Chartis insurers, or other financially strong carriers.
Thomas Grandmaison, senior vice president of Lexington, said: “Recent economic conditions have put added pressure on construction firms and owner/developers to manage legacy liability as part of their overall insurance budget.
“They desire options to close out or reduce legacy liability risks that could negatively affect their cash flow today. Lex FollowUP provides policyholders an option for financial certainty regarding those legacy exposures.”