Parametric insurance fills gaps in builder’s risk coverage: panel
NATIONAL HARBOR, Maryland — As the weather becomes increasingly severe and unpredictable, customizable parametric insurance can cover losses and enhance safety in ways traditional builder’s risk policies cannot, a panel of experts said Tuesday at the International Risk Management and Insurance Construction Risk Conference. While builder’s risk covers only physical damage, parametric can compensate builders for conditions that make work impossible or unsafe, such as extreme heat or cold, wind, rain or snow, said the panel of three advisers, none representing parametric insurers. “Contractors are just absorbing (non-covered weather losses), mostly silently,” said Rose Hall, founder of construction risk advisory firm RH Business Ventures. “And most people I talk to say, ‘I’ve been working in weather for forever, and it hasn’t been a problem.’ Really?” Ms. Hall pointed to the growing impact…