Builders in Southeast Virginia Launch General Liability Company
Home builders in southeastern Virginia have started their own company as a way to confront the crisis in general liability insurance.
As expensive lawsuits from problems with EIFs, mold, construction defects and others issues were limiting insurance and escalating premiums, the Tidewater Builders Association started laying the groundwork to form its own risk retention group to offer general liability coverage to its members.
The association this month launched Builders Insurance Association Inc. to write general liability insurance for residential builders across Virginia who belong to their local home builders association.
“We didn’t form a committee to study it, we formed a wholly owned subsidiary of TBA,” says Chip Iuliano, president of the 1,060-member association. “All builders, even those with good track records, have had real difficulty obtaining this insurance. We expect there to be a significant demand for this product from our builders and from other builders in the state of Virginia.”
The new product requires risk management tools, as well as participation in safety and loss prevention programs.