Nuts & Bolts: ACE USA, the U.S.-based retail operating division of the ACE Group of Companies, introduced hurricane spin-down insurance that can be used by the chemical process industry to help reduce the financial costs of closing down plant operations in response to the threat of a hurricane. The Hurricane Spin-down policy will pay a pre-determined value to cover the lost income and extra expenses incurred during the period of spinning down and spinning up plant operations. Coverage will be triggered if the probability of a hurricane impacting the covered location reaches an agreed-upon critical threshold based on the plant’s hurricane response protocols. This policy is available for coastal areas in the United States and the Caribbean. The coverage period can extend from a few days to the entire hurricane season. ACE USA’s Hurricane Spin-down insurance product will be marketed through both retail and wholesale insurance brokers.
Dollars: Minimum premium of $10,000; deductibles are deductibles “in-kind,” e.g. insurance for major (categories 3, 4 and 5) hurricanes only. Coverages for categories 1 and 2 are available, but due to their frequency, are more expensive. Typical policy limits are expected to be between $1 million and $5 million, although higher limits are available upon request, and subject to underwriter discretion.
Carrier: Illinois Union Insurance Company, non-admitted. Illinois Union is a wholly owned subsidiary of ACE USA, and is rated “A” by A.M. Best, “A+” by S&P and Fitch, and “A2” by Moody’s.
States Available: U.S. coastal states from Maine to Texas and the Caribbean Islands.
Contact: Michael Luck, (215) 640-5341 or michael.luck@ace-ina.com
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