Insurance broker Howden has introduced Wildfire Excess Liability Lineslip (WELL) to cater to the growing need for insurance cover for contractors and subcontractors operating in wildfire-prone areas in the US, such as California, Washington, Oregon and Arizona.
WELL, which has been developed by Howden’s Casualty team, is claimed to be the first facility of its type to market.
This product will enable contractors engaged in wildfire-exposed areas of operations to perform preventative and repair work.
Currently, access to these worksites is restricted to contractors with a minimum $10m liability insurance but the required coverage has become difficult to secure given that available capacity has been greatly reduced across important US, London and Bermuda markets.
According to data from Howden’s recent report, ‘Climate in Peril’, global insured wildfire losses surged 500% during 2010-2019 as against the prior decade.
Howden executive director for casualty Justin Whitehead said: “We’ve seen increasing demand for this coverage over the last year as the capacity crisis in this space has become apparent, so we wanted to start 2022 with a product that could really make a difference.
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By GlobalData“WELL was designed in close collaboration with the London market to secure highly sought after excess liability capacity for Wildfire exposed contractors who face a real crisis of capacity. This is not only the first facility of its kind, but the partnership we have seen with insurers demonstrates a willingness across the market to address this emerging risk.”
Howden managing director for Casualty Mark Colgate said: “This is a great example of the important role the insurance market has to play in society’s response to climate change. Through the innovation and development of new products to address risks that might otherwise go uninsured, we can support the long-term resilience of risk-prone areas and populations.”
