CONSTRUCTION
INSURANCE
FROM PEN
UNDERWRITING
• No Height or Depth limit
• Part Product
• 2 years new for old on Own Plant
• Replacement hire charges following damage to Own Plant
• Fuel in Bowsers
• HSE Fee For Intervention costs
• Completed Private Speculative Build up to 365 days and Commercial
Speculative Build up to 90 days
• Customers Goods in the Care Custody & Control
• Public Liability to £10M with excess layer options available
• Employers’ Liability to £10M with excess layer options available
• Contracts Works Limit of Indemnity to £10M
• Own Plant Limit of Indemnity to £5M
• Hired in Plant Limit of Indemnity to £2.5M
• JCT 6.5.1 to £10M with excess layer options available
• Terrorism
• Legal Expenses including Contract Disputes
WHY PEN CONSTRUCTION?
As construction insurance specialists, established over 20 years ago, we know that building in something extra will create value for your client.
Does your current policy provide the following? Ours does as standard, which means these features and many more are automatically
embedded in our policy at no extra cost:
• Contract Works Defects Extension
• Off-site storage
• Professional Negligence
• Financial Loss
• Cyber Liability
• Environmental Impairment Liability
• Environmental Statutory Liability
• Management Crisis Costs
We are able to offer the following sections of cover and limits on either an annual or single project basis.*
* Higher limits may be considered;
CRAFT AN ADVANTAGE
Not all construction policies will provide the cover your client needs as standard. Below are some of the
key features included in our policy and what they cover.
HSE Fee For Intervention
From 1st October 2012 the HSE has been able to recover costs for carrying out
some of its activities from those found to be in material breach of health and
safety law. This cost recovery approach is known as Fee for Intervention (FFI)
This policy will meet the costs where an inspection results in a letter,
enforcement notice or investigation by the HSE. The average cost of a FFI
invoice in 2016 was £650
Part Product
Most Contractors Public/Products Liability policies will as standard exclude
damage caused to a product by its own defect. We will interpret the Product as
being any and all work undertaken by or on behalf of the Insured under a
contract. A Product means anything constructed altered repaired etc by the
Insured and no longer in their possession or control. Our policy only excludes
that part of the product which is defective. This allows cover to be brought back
in on the overall product and limits the exclusion to the defective part of the
product only. Giving the example of a new build property as the Product which
is destroyed by fire the excluded defective component part may be as small
and inexpensive as a fuse, the rest of the product now being covered.
Speculative Build
When a build under contract reaches practical completion, cover under a
standard contract works policy ceases with the transfer of risk moving from the
insured to their employer. If there is no employer and no contract and the
insured has purchased land to build in the hope of an onward sale this is
classed as speculative. Where practical completion is reached without a buyer
the insured retains ownership of the risk pending sale. Our policy will provide
cover up to 365 days for residential speculative build and 90 days for
commercial speculative build pending sale, lease or rental of the property
subject to the contract works policy remaining in force.
Environmental Impairment Liability
A standard pollution policy will pick up circumstances where the incident giving
rise to a claim is sudden and takes place in its entirety at a specific moment in
time. EIL allows cover to be brought back in where the incident giving rise to a
claim is gradual. Giving the scenario where a fuel tank on site has been gradually
leaking into the drains our policy will respond in the event of bodily injury or
damage arising from such cause.
Defects Extensions
Most Contract Works policies will as standard exclude damage to property which
is in a defective condition but will provide cover to other parts of the property
which are damaged as a consequence of, this is referred to as DE3 and is common
amongst most policies. Uplifts may be available to DE4 and DE5 to give wider
cover. As an example, a marble column fails because its inner steel supporting rod
is defective in design. The roof collapses, causing extensive damage to an
expensive tile floor. Under DE3 the floor and roof would be covered but not the
column. DE4 would cover the floor, the roof and the column but not the rod. DE5
covers everything except the cost of an improved type of supporting rod. Our
wording provides DE3 cover with the option to uplift to DE4 post loss should this
be economically viable to the insured. DE5 cover can be considered upon request.
Professional Negligence
Professional Negligence cover will offer protection against financial loss to an
employer arising from the design activities of the Insured. For example, a plumber
designing and installing all the waterworks for a new home may find the system
fails. If there is no damage and no injury but the system just doesn’t work due to an
error in the design or specification, Professional Negligence insurance may cover
the financial losses incurred by the employer. They may for example need to find
alternative accommodation and place furniture into storage while the work is being
rectified.
The main feature of the risk must be manual
work away
Minimum turnover £1M
Air Conditioning, Acoustic Engineer, Alarm Installers, Artexers,
Bathroom & Kitchen Installers, Blinds, Roller Window & Door
Shutter Contractors, Bricklayers, Carpenters, Cavity Wall
Insulators, Ceiling Contractors, Chimney Sweeps & Repairs,
Conservatory Erection, Construction Site Logistics, Damp Proofing,
Data Cable Installers, Domestic Shed & Garage Erectors, Drain &
Pipe Cleaners, Drystone Walling, Ductwork Installers, Electrical
Contractors, Fencing Contractors, Fitted Furniture Installers, Floor
Covering Contractors, Floor Surfacing Contractors, General
Builders, Glass & Double Glazing Contractors, Groundworkers,
Harling & Roughcasting, Haulage Contractors, Heating &
Ventilation Contractors, Insulation Contractors, Landscape
Gardeners, Loft Conversion Contractors, Paving Contractors, Pipe
Fitters, Plant Hire, Plastering & Drylining, Playground Equipment
Installers, Plumbers, Road Surfacing/Kerbing, Shop & Office
Fitters, Site Levelling/Clearance Contractors, Solar Panels (Farms),
Sports Surfacing Contractors, Stonemasons, Terazzo Work, Tilers,
Utility Contractor
The main feature of the risk must be manual work
away, with this activity forming the majority of
their overall work i.e specialists in their field
Minimum turnover requirement of £1M
Aerial Erectors, CCTV & Alarm Installers, Concrete
Finishers, Concrete Pumps, Curtain Walling, Diamond
Drillers, Formwork & Shuttering, Guttering, Lift
Engineers, Reinforced Concrete Contractors, Soft Strip
Contractors, Solar Panel Telegraph Pole & Street Light
Installers, Tree Felling & Lopping, Underpinning, Water
Treatment Contractors
Roofers, Scaffolders, Demolition,
Steel Erection, Steel Fabrication,
Asbestos removal, Forestry
Contractors, Steeplejacks, Piling,
Red Zone Rail Works, Work on
Runways & Aprons, Tunnelling, ,
Work involving bridges & Viaducts,
Basement Contractors
Out of Appetite
OUR APPETITE
ACCEPT ACCOMMODATE DECLINE
Years trading or previous experience if a new
venture along with details of the last 3 contracts
CONSTRUCTION - LIABILITY
We love finding solutions. We have expertise, empowerment and a
first class product. We want to help you win and retain clients.
Include the following in your presentation to enable us to consider the
risk and apply our best rates.
CRITICAL
Even new ventures can attract a discount if you can outline any previous
experience
ONE
TWO
THREE
FOUR
FIVE
Last 5 years turnover and 5 years claims
experience so we can assess any fluctuations
CRITICAL
If a turnover has fluctuated this may not give a clear representation of
the claims experience
SIX
SEVEN
EIGHT
NINE
TEN
Split in business activities if more than one
activity is undertaken
Allows us to accurately apply the right rate rather than allocate to the
highest risk trade
Split in locations worked (Residential,
Commercial, Industrial, Leisure, Offices,
Schools) Maximum number of storeys worked
to internally
Allows us to accurately apply the right rates rather than allocate to the
highest risk location
Any work involving Asbestos Containing
Materials either by the insured or by a BFSC
CRITICAL
Material fact - we are not looking to accommodate risks where handling
of ACM's are a feature
Split of work above 10M from ground level
& split of depth work below 1M, 3M, 5M
% use of heat and type split by own work
force and BFSC
Split between work in/on new build and
existing buildings
Allows us to accurately apply the right rates rather than allocate
to the highest risk
CRITICAL
Rating factor
Allows us to accurately apply the right rate rather
than allocate to the highest risk
CRITICAL
Allows us to accurately apply the right rates rather than apply all
as manual if not otherwsie split out
Rating factor - linked in with site supervisory wages below.
Demonstrates the controls the insured has on site
Full wages breakdown between clerical, manual
away, manual premises, drivers, yardmen, site
supervisors and fixed woodworking machinery
Payments to BFSC and what work they
undertake on your behalf
Details of security on sites
Estimated Maximum Exposure any one site
– use this to set your limit of indemnity
Inventory of Plant detailing individual
makes, models and value and whether any
security devices are installed
Estimated Maximum Exposure for Own &
Hired in Plant on site/own premises – use
this to set your limit of indemnity
Annual Hiring Charges
Years trading or previous experience if a new
venture along with details of the last 3 contracts
CONSTRUCTION - WORKS/PLANT
CRITICAL
Even new ventures can attract a discount if you can outline any previous
experience
ONE
TWO
THREE
FOUR
FIVE
Last 3 years turnover and 3 years claims
experience so we can assess any fluctuations
CRITICAL
If a turnover has fluctuated this may not give a clear representation of
the claims experience
SIX
SEVEN
EIGHT
NINE
TEN
What % of turnover is derived where the
Employer is responsible for insuring the
contract works
Rating factor. If the Employer is insuring the works in joint names then a
premium saving can be obtained
Split between New Build and Alterations/
Maintenance
Allows us to accurately apply the right rate rather than allocate to the
highest risk
What % of work involves the use of Timber
Frame
CRITICAL
Material Fact. Our policy gives up to £2M/3 storeys. Please ensure this
is adequate.
Particularly relevant where Timber Frame is a feature
CRITICAL
We work on a LOI basis, not maximum contract value. A contract
may be in 2 equal phases hence the LOI can reflect such
Allows us to accurately apply the right rate rather
than allocate to the highest risk
CRITICAL
Rating factor
We work on a LOI basis not sum insured, this can make a real
difference to the rating if there is a good spread of risk
We love finding solutions. We have expertise, empowerment and a
first class product. We want to help you win and retain clients.
Include the following in your presentation to enable us to consider the
risk and apply our best rates.
DON’T JUST TAKE OUR WORD FOR IT
With a 45% success rate on quotes given through 2021 this is what some of our brokers are saying;
While the core essential covers a broker would expect on any construction insurance
product are in situ - what is particularly impressive with the Pen Construction
contract is the many additional areas of cover that are included automatically in
their product.
The team were able to expand clearly and precisely on each area of cover that is
included in their policy automatically - which you would not necessarily find to the
same extent or at all - amongst other construction policy wordings that are available
in the market to brokers.
Aside from these enhancements on policy covers for their product, I found Pen
Construction underwriters keen to work with me as a broker on terms and premium
in obtaining the correct and necessary risk information that allows them to provide
me with competitive terms and premium aligned with an already enviable
construction product."
Paul Schofield | Donald Schofield Limited
“It extremely easy to do business with Pen’s Construction team”
Nicola Pearson | JM Glendinning Insurance Brokers
“Responsiveness is key - in this case I was able to get hold of the team immediately
twice, get renewal terms easily based on information that was not straight forward
and then get an amendment (last minute) resolved very quickly. What could have
been a time consuming difficult renewal to talk through with an underwriter was
made as simple as could be hoped for.”
John Ramsden | Alan Boswell Group
“Our experience is that of easy, simple procedures from the underwriters and claims
teams we deal with. We have always been able to contact the Construction team
via email or phone with a quick response.”
Andy Shore | Brooksure Insurance Brokers
We have been working with Pen Construction over the past 12 months. Their
proposition is a breath of fresh air for the market.
Pen’s Construction product includes many important additional features, including
Part Products Liability and FFI costs charged by the Health & Safety Executive.
However, it’s the immediate access to construction specialist underwriters, their
balanced underwriting process, competitive premiums and can-do attitude which
makes the Pen Construction offering very attractive to brokers."
David MacKinnon | Vision Insurance Services Ltd
"I was impressed by the breadth of policy coverage, competitiveness of the premium
and responsiveness/expertise of the underwriter."
Kristina Hudgell | Aston Lark Group (Alton)
“Nicola King turned around a last minute quote request within a couple of hours and
stayed on to 6pm as she knew I needed cover on the day, only to find out Id had to
leave the office earlier! She really pulled out all the stops for me and made the
placement easy, efficient and super-quick - I cant praise her efforts highly enough - In
a word - Superb!”
Abi Smith | Kelvin Smith Insurance Brokers
“The construction team is brilliant - we get a quick yes or no on whether they can do
cover, and when they can quote we are finding them very competitive on premium
with an excellent wording behind them.”
Senior Account Handler | Broker in the South West of England
“I think it's already easy to do business with Pen’s Construction team”
Becky Hitchcock | Aston Lark Group (Derby)
WHY PEN UNDERWRITING?
Pen Underwriting (Pen) is a multi-class, multi-territory Managing General
Agent (MGA). When we set up Pen in 2014, we brought together some of
the UK’s best known and most respected underwriting businesses, many
with decades of underwriting expertise. From a ‘super start-up’ of a dozen or
so brands, to a single cohesive £660m GWP business, we’re setting our
sights on our next milestone – with a bold new vision to become a £1bn GWP
underwriting & distribution business. Over the last six years, the businesses
have integrated to form one single operation that had broad distribution and
acted like an insurer, responsible for everything apart from the capital at risk.
In 2021, with the majority of the integration work done, and with Pen
operating as a single business, Pen has redefined itself – not as the business
it thought it might become, but as something even better – the business the
market needs it to be.
IDEAS - We find smart ways to make the most of opportunities
• Leveraging expertise and technology to create solutions
• Bringing new products and services to market
• Solving broker, carrier, coverholder and insured pain points
AGILITY- We are responsive people, empowered to make decisions
• Meeting Pen service standards
• Adapting products and processes quickly
• Being flexible in how we address challenges
CONNECTING - We work together to offer joined up solutions
• Being accessible to other teams
• Collaborating on initiatives across the business
• Being proactive about cross-selling opportunities
FULFILMENT- We deliver products, services, processes &
infrastructure that provide a competitive advantage
• Satisfying needs of all stakeholders
• Executing work with attention to detail
• Providing a consistent customer experience
SOLVING - We focus on building our reputation as
long-term partners
• Developing sustainable business practices
• Progressing our expertise, skills, and technology
• Creating solutions for the future
Our values – IDEAS, AGILITY, CONNECTING, FULFILMENT and SOLVING – are built on strong foundations
CONTACTS
Simon Foweraker
Managing Director
01992 449467
07768 925710
Simon_Fowerak[email protected]
Tania Kiernan
Senior Underwriter
01992 449426
07526 190717
CENTRAL SALES TEAM
01403 321196 |
Nick Read
Senior Underwriter
01992 449 446
07858 365225
Katie Hendry
Underwriter
01992 449428
07873 628609
www.penunderwriting.co.uk
These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and
conditions, exclusions, warranties, subjectivities, excesses and any endorsements.
Pen Underwriting Limited is authorised and regulated by the Financial Conduct Authority (FCA number 314493). Registered
Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 5172311.
www.penunderwriting.co.uk
05/23
