100 % New Residential Plumbing Contractor

[beveh]

I have a plumbing contractor whose operation is 100% new residential plumbing. He has 50% uninsured subs and has had two mold and mildew losses in past three year in addition to a marcury loss casused by vandals that broke a measuring device that had mercury in it--hydros static tesing device--the four year loss ratio is in excess of 100%--he does not have a frequency problem and is a well run operation--at renewal w- his general liability increase from $73,000 to $173,000 with a 25,000 deductible.All of the losses that he has had will be excluded--ie mold mildew-pollution. Any comments re markets and reasoning for the tremendous increase in premium. Obviously the market place is one reason and the use of uninsured sub is another--i also have been told that the Montrose decision has muddied up the trigger dates and ahas extended the expected tail associated with this type operation--please share yor thoughts as to how you would handle the situatuion--

[tuffdeal]

Frankly, your client has few if any options. With 50% uninsured subs, to underwriters he is a dead man walking. Presuming that condos and/or apartments are not an issue, he has his choice of [1] the BCIC -- the new risk retention group -- which is not rated and of little interest to his GC's; [2] a Claims Made form -- which is also probably not acceptable to his GC's; or the [3] Heath/Steadfast facility which is probably the carrier that has quoted him. Montrose is not the issue. Montrose can't extend the tail.
As a new residential sub presumably doing tracts, to remain in business your client needs an "A" carrier and an Occ form and there are are no options.

[Blueunderwriter]

With 50% uninsured subs, to underwriters he is a dead man walking.

You are absolutely right! ANY contractor who does not protect himelf/herself by requiring proof of insurance from their subs, is an undesirable risk. The contractor is taking no initiative to Risk Management.
My suggestion would be that you, as their agent, work with them in developing a sound risk management and loss prevention procedure. Advise your client to better protect themselves by demanding proof of insurance from all their subs. Do something about securing their tools and job sights. Most carriers do have a Loss Control or Risk Managment department that could help advise prospects/insureds of preventive measures. Even though this Hard Market is waining, most Carriers are reluctant to take on the realy "risky" bussiness.