Project Loss Insurance

Travelers Project Loss Insurance (PLI) is designed to mitigate the risk of a catastrophic project loss, helping contractors emerge from the loss rather than succumb to it.

Construction projects involve a large amount of risk, even for the very best contractors. A sizeable loss on a project can lead to business impairment or worse: complete failure. Business failure means the loss of business assets and oftentimes personal assets as well.

As an industry-leading surety, Travelers has the benefit of seeing first-hand how successful construction businesses are run. We also get an up-close look when contractors fail. Each year we review our 10 largest contract surety losses to understand what these companies did (or didn’t do) to suffer such a significant loss. We’ve been conducting this study for more than a decade, and the results of the study help us to better understand the risk our contractor customers take on every day. Some of the biggest takeaways we have from this study are: 

• One catastrophic project loss can cause an entire operation to fail.
• A lack of sound internal controls and best practices is a major contributing factor to the problems that threaten the long-term viability of any company.
• Decisions at the time of project selection can have long-lasting effects. 

Who is Project Loss Insurance right for?

Coverage may be available to contractors through their surplus lines broker and is not limited to current Travelers Construction Surety customers. This policy is designed to cover a broad range of contractors and situations including the following:

• General contractors
• Heavy civil contractors
• Trade contractors
• Business owners looking for corporate and personal wealth protection
• Employee-owned companies (ESOPs)
• Companies considering succession planning 

What's covered?

Project Loss Insurance offers contractors the ability to share the risk of catastrophic project loss, which may include loss associated with the following events that are traditionally difficult to insure:

• Bad estimates
• Poor production
• Subcontractor failure/default
• Delay damages
• Price escalations
• Manufacturer/supplier failure
• And many more 

Key features 

• PLI was created as a risk-sharing solution for contractors to further protect their corporate and personal assets and ultimately help them build a better business for the long term.
• PLI can provide interim payments for an anticipated covered project loss during the life of the project.
• Through the underwriting process, PLI can help contractors improve financial reporting and internal controls to better prevent catastrophic losses and improve overall operations.

Coverage is provided by a U.S.-based Travelers surplus lines insurance company on a non-admitted basis and the information contained herein is provided for informational purposes only. It is not an offer to sell or a solicitation of an offer to purchase any insurance policy in any state. No insurance product is offered or will be sold in any state in which such offer or solicitation would be unlawful under the laws of such state.  Travelers is not licensed nor directly solicits insurance in any state where its surplus lines products may be purchased pursuant to applicable surplus lines laws. Insurance policies provided by surplus lines insurers are not protected by state guaranty funds. Surplus lines insurers are not subject to all of the same insurance regulatory standards applicable to licensed insurance companies. Coverage is subject to the specific terms and conditions of the policy. This policy may only be accessed through a surplus lines licensee and may not be purchased directly through this website. Anyone interested in this policy should request a copy of the policy from a surplus lines licensee. 

PLI coverage is available on a non-admitted basis and may only be accessed through a surplus lines licensee. If you are an agent and would like to learn more about this product, please send an inquiry to: [email protected].