All insurance policies issued by ACIG insurance companies have an inception date of June 1. This promotes workflow efficiencies while leveraging the membership’s buying power with insurance coverages purchased outside of the organization. "Core" refers to an annually renewable insurance policy insuring the interests of an individual Member. ACIG offers the following insurance coverages to Members:
ACIG offers statutory workers' compensation coverage and retains the first $8 million per insured loss for both Part One: Statutory Limit and Part Two: Employers Liability combined for all Members.
Our standard limit of liability insurance for Part Two: Employers Liability is:
$1 Million for Each Accident
$1 Million Policy Limit
$1 Million for Each Employee
ACICRRG can offer up to a $10 million limit of general liability insurance.
The general liability policy structure is designed to address horizontal exhaustion where multiple primary insurance policies contribute to an insured loss (Kajima Construction Services, Inc. v. St. Paul Fire & Marine Insurance Co.).
The general aggregate limit applies on a per-project basis; the completed operations limit is a policy aggregate.
Effective June 1, 2018, all general liability policies include a “Designated Work Exclusion Endorsement” to help mitigate the risk of a multiple policy trigger due to an “occurrence”. This endorsement excludes work completed prior to the effective date of the policy if another policy covers work. This allows one ACIG general liability policy to respond to a single “occurrence” due to continuous or progressive damage, limiting a Member's financial exposure to a single loss.
Periodically, Members are insured under an Owner Controlled Insurance Program (OCIP) or a Contractor Controlled Insurance Program (CCIP) sponsored by their clients. There is no “standard” CIP structure although they commonly include General Liability, Excess Liability, and/or Workers’ Compensation coverages. Outside insurance carriers and brokers facilitate CIP policies on a project-specific or client-specific basis. The ACICRRG general liability policy automatically excludes any claim arising from a CIP. However, coverage can be provided for “difference-in-conditions” (DIC) and “difference-in-limits” (DIL) of CIP-provided insurance. ACICRRG underwrites and charges premiums for this coverage extension.
ACICRRG offers a $5 million combined single-limit auto liability policy.
ACICRRG retains the full limit of liability and does not use reinsurance. The auto liability policy form does not cover auto physical damage. Members have the option to utilize a separate auto physical damage insurance policy issued by ACIG Ltd.
Many ACIG Members sponsor contractor-controlled insurance programs (CCIP) which insure the operations of the Member as well as enrolled subcontractors and the project Owner. A CCIP can provide insurance in three different combinations:
Coverage Part Two: Employers’ liability is offered with a $2,000,000 policy limit.
Our SSDI insurance policy supports three functions: a) it insures the deductible/retention obligations of an outside SDI policy; b) it provides default insurance for enrolled subcontracts that are otherwise uninsured or underinsured by the outside SDI program; c) it may also simply function as a stand-alone SDI policy for those Members not utilizing an outside SDI policy.
Beginning in 2021, Members have the option to participate in a risk pool excess of a retro subject retention. This allows Members to potentially take higher retentions with their outside SDI program(s) while separately pooling such risk with like-minded contractors.
This policy insures the auto physical damage risk of the Member otherwise excluded under their ACIG auto liability policy.
This policy provides funding for the large deductible/retention obligations for insurance, such as builders’ risk, professional liability, pollution liability, cyber liability, etc.
Through our external insurance carrier business partners, ACIG facilitates additional insurance solutions to meet the needs of our Members. We conduct these services under ACIG Insurance Agency, Inc. or ACIG Risk Purchasing Group. The following insurance coverages are available to Members:
CNA Financial Corporation (“CNA”; A.M. Best Rating A XV) offers a $10 million excess limit of liability. This policy follows form and is excess of general liability, auto liability, and employers liability insurance. It is available for both the Core and CCIP insurance programs. ACIG assumes risk as a reinsurer for this policy.
Participation requires the following underlying limits of liability:
$10 million Each Occurrence
$10 million General Aggregate
$10 million Products-Completed Operations Aggregate
$1 million Each Accident
$1 million Policy Limit
$1 million Each Employee Limit
Auto Liability
$5 million Combined Single Limit
In order to satisfy the $5,000,000 ACIG/CNA Excess layer auto liability limit requirement, CNA is able to underwrite auto liability insurance for Members with “light fleets” (defined as fleets of no more than 350 total units with no more than 15 heavy units). While not involved in the underwriting or negotiations, ACIG reinsures a portion of this policy.
ACIG Insurance Agency, Inc. facilitates additional excess liability insurance through a wholesale brokerage. This is available for both Core and CCIP on a follow-form basis. ACIG leverages our group purchasing power to negotiate better terms and pricing for each individual Member, working alongside the Member's broker.
We utilize our risk purchasing group to negotiate favorable terms and pricing for participating Members. The limits of insurance are $50MM/$150MM and shared by the group which maximizes purchasing efficiency. At present, policies are underwritten and issued by Berkley Assurance Company (A.M. Best Rating A+ XV) and Indian Harbor Insurance Company (AXA XL; A.M. Best Rating A+ XV). The program provides professional protective indemnity, professional liability, and pollution liability for contractors. Additional coverages provided include rectification indemnity, environmental impairment liability, mitigation of loss, and microbial events.
We utilize our risk purchasing group to provide cyber insurance to every participating Member and negotiate better terms for all. Like CPPI, our Group Cyber program is underwritten with limits of $25MM/$50MM, and are shared amongst the participating Members. Cyber Liability insurance coverages include Network and Information Security, Regulatory Defense and Penalties, Multimedia Content Liability, and PCI Fines and Assessments. First-Party insurance coverages include Breach Response, Crisis Management and Public Relations, Cyber Extortion, Business Interruption, and Extra Expenses, and Digital Asset Restorations.
ACIG Insurance Agency, Inc. can facilitate the insurance placement and service of an outside Subcontractor Default Insurance (SDI) Program, if needed. This enhances the coordination with the ACIG-underwritten SDI policy and provides first-dollar protection to the Member.
ACIG offers a reinsurance program where ACIG reinsures small payment and performance bonds issued by an outside Surety. The outside surety issues payment and performance bonds on behalf of a Member while ACIG assumes risk under a reinsurance agreement. Members utilize their excess capital position within ACIG to collateralize this risk. This is only available for project bonds up to $5,000,000.
In addition, ACIG can facilitate the procurement and billing of surety bonds. This arrangement suits Members who work directly with their surety. ACIG’s role includes invoicing bond premiums and coordinating bond commissions.
Rarely ACIG insurance policies are not accepted by a state regulatory body or do not meet contractual requirements. CNA Financial provides a solution by fronting the insurance or issuing the policy by a CNA insurance carrier on our behalf. ACIG still handles the claims and premium billing. Fronted policies are generally issued project-specific, owner-specific, or to fulfill a regulatory requirement. Fronted Policy costs are contemplated on a corporate level and are not individually charged to Members requiring a fronted policy.
The following reasons are some of the regulatory conditions when ACIG may require CNA to issue a fronted policy:
We have active initiatives in these jurisdictions where a front is required, with a Project Independence goal of removing the need for a fronted policy.
