A Conversation with Robert Hubbard, Director, Lochain Patrick Insurance Brokers
Over the last 10 years, Lochain Patrick, one of the world’s leading specialty marine and energy brokers, has applied its expertise in developing an exclusive product that protects contractors and their construction, or “mobile plant” equipment. The specialty offering was created in response to the need from clients seeking a mono-line product that would cover a range of equipment.
Robert Hubbard, a Director with Lochain Patrick, explains the nuances associated with Contractors’ Mobile Plant & Equipment coverage.
Q. What type of client is most interested in seeking this coverage?
The product was originally created to support the needs of brokers whose clients were engaged in the booming energy industry in Alberta, Canada. As the product offering has expanded, there has been a growing interest from a variety of different companies, including forestry and logging contractors, heavy haulers, highway maintenance companies and other construction firms throughout Canada. We expect the product to continue gaining traction with North American contractors.
Q. What questions should brokers and agents ask their clients to understand when this coverage is required?
We need to understand how often the equipment is operated, where it stored and the scenarios that create peak exposures. For example, you will want to know the weather conditions in which the equipment is operating, and the type of security in place to protect the equipment from theft. The type and specificity of the equipment is also important. The coverage is flexible to include a range of machinery, varying from hi-spec cranes and trailers to drilling and subsea/marine equipment.
Q. What additional benefits does this product offer to the client?
In addition to the protection delivered at a competitive price, the coverage can be tailored to the needs of the client. In doing so, the broker or agent creates an opportunity to proactively advise on risk management, which can help reduce costs in the short to medium term. Recently, one of our clients faced a large loss of a turbine that had been carried on a trailer. During the renewal process we recommended an inspection of a selection of connecting pins and subsequently received a positive report. This advanced risk mitigation significantly reduced the client’s renewal premium and as a result, the client is exploring additional coverage solutions for its other equipment.