Howden unveils ‘first-of-its-kind’ wildfire excess liability facility

International insurance broker  Howden has launched a new wildfire excess liability lineslip (WELL) to address the increasing need for insurance cover for contractors and subcontractors operating in wildfire-prone areas in the US, such as California, Washington, Oregon and Arizona.

Developed by Howden’s casualty team and A-rated insurers, WELL is the first facility of its kind on the market to insure general contractors and subcontractors against third party business interruption and property damage from wildfires.

Howden said the global insured wildfire losses increased 500% during 2010-2019 compared to the previous decade, yet the required coverage has become difficult to obtain as available capacity has been significantly reduced across key US, London and Bermuda markets.

“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,” said Justin Whitehead, executive director, casualty at Howden.

“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.”

Mark Colgate, managing director, casualty at Howden, added: “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.”

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