A discussion on providing insurance for elevator companies. National Elevator Insurance Solutions, a Division of HUB International, has been creating comprehensive insurance and risk management products for the elevator industry for more than 40 years with experience in arranging insurance for customers involved in various aspects of the elevator industry, including elevator contractors, inspectors, consultants, distributors and manufacturers. HUB International Senior Vice President John Tateossian (JT) took some time to talk specifics with your author (AB) about insurance for the elevator industry and the industry at large. AB: What are some of the insurance industry's biggest challenges when it comes to insuring elevator companies? JT: One of the biggest challenges is our increasingly litigious society. Lawsuits are becoming more commonplace and awards much larger. There is no cost for someone to bring suit against an elevator contractor, or any contractor, for that matter. This has led to an uptick in lawsuits being filed and, as a result, a spike in the number of claims. This is further exacerbated by huge court awards and nuclear verdicts, thereby increasing claim values dramatically. These values are also further impacted by medical inflation and costs associated with litigation. For more than 25 years, excess liability coverage has attached above US$1 million for general liability and auto liability coverage. Today, we are seeing claim values exceed the US$1 million threshold and pierce the excess layer more often.
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