Enviro-Insights - Getting Contractors Shovel-Ready For The Stimulus Projects

The American Recovery and Reinvestment Act passed in February set aside more than $130 billion for infrastructure projects across the country. But that’s just a drop in the bucket compared to the total work that could be done by states and local governments. Experts estimate that $2.2 trillion is needed to repair and maintain existing infrastructure over the next three years.*

Contractors of all types are going after stimulus projects that build or rebuild infrastructure (highways, bridges, mass transit, airports, wastewater treatment facilities, power and energy plants), health care facilities (hospitals) and educational facilities (schools).  The stimulus package projects vary widely in scope and potential risks, requiring some contractors to obtain coverage for new exposures they haven’t considered before, especially in the environmental realm. Different projects have very different environmental exposures—ranging from fuel spills from mobile equipment to hydrocarbon exposures when laying asphalt.  And depending on the type of infrastructure work, the site-specific exposures can span across many miles of land.

To profit from the stimulus package projects, contractors and their brokers have begun to recognize the need to tap into construction risk specialists—a team of experienced professionals that can provide broader insurance coverage, more cost-efficiency and flexibility in credit and cash flow. As America’s largest construction insurer, Zurich acted quickly after the passage of the stimulus legislation to provide a comprehensive range of products and services with InfraSolutions.™

This innovative offering helps provide contractors with a comprehensive solution for their risk needs, including more than 30 shovel-ready products such as Builders Risk, Casualty, Umbrella Excess, Professional and Environmental Liability. InfraSolutions™ also offers more than 70 services such as dedicated project underwriting, risk engineering and claims teams, a Highway Worker Safety program co-produced with AGC of America, an interactive fleet risk assessment tool, crane management, and more.

Since the credit crunch began last fall, contractors are also looking at any and all opportunities for cost-savings and other efficiencies. Zurich InfraSolutions™ offers cashflow management and credit enhancement features including:

• Premium reductions when multiple lines of insurance are purchased
• Clash deductible option that requires paying only one deductible when a loss triggers multiple policies
• Flexible collateral options and payment terms
• Trusts that allow contractors to earn investment income
• Certificates of Deposit that offer a lower-risk instrument with market rate investment return

Broader coverage and more flexible cash management and credit. Just two of the reasons to learn more about Zurich InfraSolutions™