Home Construction Insurance Company (HCIC) offers affordable commercial general liability insurance coverage to quality homebuilders who embrace the concept of the Right to Repair and who are frustrated with the limited coverage and high premiums in the traditional insurance market. The group is owned by policyholder builders and the majority of the Board of HCIC is made up of builders.
History
In late 2002 several builders requested the involvement of the California Building Industry Association (CBIA) to look into developing a risk retention group in an effort to provide quality coverage at a reasonable price. “Our builder members told us it was all about stability, control and basically builder involvement” said Robert Rivinius, who was then CEO/President of CBIA. So in early 2003, the work commenced to establish a builder owned insurance company.
After 18 months of behind the scenes work with the administrator, JH Intermediaries Ltd, CBIA announced in March of 2004 the launch of the program. What is unique about HCIC is that the company is run by builders who are surrounded by insurance professionals providing expertise in the areas of underwriting, claims, finance and captive management. Program decisions are made by builders who are insured by HCIC, rather than by insurance executives in corporate offices.
HCIC’s first President and Chairman, Dennis Moresco was a former Chairman of CBIA. Innovative builders with a leadership background are common traits of HCIC policyholders. Several policyholder/builders in the program also hold leadership positions in their respective homebuilders associations.
Risk Retention Groups
A Risk Retention Group, often referred to as an RRG, is a federally created insurance company owned by its shareholders/insureds. The Federal Product Liability Risk Retention Act of 1981 as well as the Risk Retention Amendments of 1986, mandates that all shareholders of the RRG must be insureds and that all insureds in turn, must be shareholders.
Unlike traditional carriers in the insurance market that are focused on profits and set rates accordingly, HCIC is an insurance company created by builders for builders. The enhancement of an RRG’s profitability through sound underwriting practices, loss prevention and claims handling directly benefits its policyholders, typically in form of reduced premiums and enhanced coverage.
A builder-based business philosophy coupled with a stable and affordable insurance program make HCIC the premier general liability insurance solution for better residential builders engaged in single-family construction operations.