INSURANCE COSTS ARE SKYROCKETING, AND IN some markets, builders can't get coverage at any price. This is one of the biggest chal-contractors today, and it is a top issue for our federation.
In response, the NAHB has formed a partnership with Marsh, the global risk management consulting firm. In a plan endorsed by the NAHB's board of directors, the NAHB and Marsh will gather data from our builder, remodeler, and trade contractor members and use that data to create a comprehensive profile of the home building industry's risk management needs. Marsh will then use that profile to develop effective new general liability insurance (GLI) products for NAHB members.
The first and most important step is understanding the actual loss experiences of the residential construction industry. As part of that effort, Marsh is going to survey thousands of the NAHB's builder, remodeler, and trade contractor members to learn more about their businesses and their insurance needs. Members will also need to provide Marsh with a letter addressed to their insurance carrier that gives the carrier consent to share loss information with Marsh.
Over the next 60 days, the NAHB and Marsh will contact members to ask them to complete the survey, put the consent letter on their letterhead, and send the materials to Marsh.
Marsh will use the information that it gathers to develop a sophisticated profile of the residential construction GLI market. This broad understanding of the market will enable Marsh to develop risk management strategies that can improve the coverage, cost, and availability of GLI for the home building industry.
Please send the required data to Marsh as soon as possible. If you do not receive these materials in the mail, then I strongly encourage you to go to www.nahb.org/gli to obtain the information.
We need as many builders, remodelers, and trade contractors as possible to participate in this effort. Please note that your insurance agent can be an important resource in finding this insurance information.
I want to stress two points: 1) All information in the database will be kept in strict confidence; and 2) Your current insurance agent will have the opportunity to sell new products developed through this initiative.
This is about your business's profits. This is about the long-term health of our industry. Taking a few minutes to gather your insurance information and send it to Marsh could be the first step in solving one of our industry's toughest challenges—and in saving you thousands of dollars in insurance premiums.
Please do your part.
President, NAHB, Washington, D.C.