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Terra Offers Mold Coverage
Corte Madera, CA - Professional liability stemming from mold studies and remediation activities is now covered through a new "Toxic Mold/Biological Pollutant (TM/BP)" policy announced by Terra Insurance Company. The coverage is available to Terra insureds that also have environmental coverage with the firm.
According to Terra CEO David L. J. Coduto, "A number of our insureds offer mold-related services, up through and including remediation, so we wanted to move as quickly as possible in providing protection. Because all our insureds are also owners of the company, 'as quickly as possible' meant 'only after a thorough evaluation was performed, to help ensure effective pricing and underwriting practices.' We believe we have accomplished the mission. We developed underwriting guidelines and practice benchmarks, then created a series of model contracts and contract guidance for TM/BP services."
Mr. Coduto said that Terra's new coverage is available through conventional, prospectively rated policies, or as retrospectively rated policies, whose cost of coverage is determined after the coverage period, rather than before.
Terra Insurance Company is a risk retention group and, as such, a firm must purchase stock in Terra in order to obtain its coverage. (Although established in 1969, Terra did not become a risk retention group until 1988, following enactment of the Federal Risk Retention Act of 1986.) As of March 31, 2003, Terra achieved its 61st consecutive stock valuation record and set a new all-time high asset value. Terra owner/insureds that "bought in" in 1988 (at $10 per share) have seen their Terra stock value increase by more than 1500%. Terra comprises 90 owner/insureds whose gross fees ranges from less than $500,000 to more than $150 million per year. It is the nation's highest-rated risk retention group in its field, rated A ("Excellent") by A.M. Best Company.
For more information, contact Terra Insurance Company, 2 Fifer Avenue/Suite 100, Corte Madera, CA 94925; tel. 1/800-872-0077 (in CA, 415/927-2901); e-mail terra@terrarrg.com.
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