#USA #Schaumburg #Zurich North America #Construction Insurance #Master Builders Risk

Zurich North America Launches Fronted Master Builders Risk

In an exciting development for the construction industry, Zurich North America has unveiled its Fronted Master Builders Risk (MBR) solution. This innovative insurance offering aims to cater to the growing demands of large-scale, complex construction projects, driven largely by advancements in e-commerce, artificial intelligence, and contemporary manufacturing techniques.

Patrick McBride, the Head of Construction Property at Zurich North America, explained how the need for this specialized risk solution originally arose. It was developed upon the request of an e-commerce giant seeking coverage for one of the largest MBR programs in existence. The success of the initial rollout has led Zurich to rapidly expand this offering on a global scale, much to the delight of brokers and clients alike. The immediate recognition of its benefits and the enthusiastic reception indicate a significant market demand for such comprehensive insurance solutions.

The Fronted MBR solution has already been successful in supporting an astounding $80 billion in insurable values, exceeding initial expectations and highlighting its effectiveness in addressing the complexities of modern construction. The innovative solution was even awarded the Insurer Team of the Year at the Business Insurance 2025 U.S. Insurance Awards, further solidifying its reputation in the industry.

A Streamlined Insurance Model

What sets the Zurich Global Fronted MBR apart is its streamlined, single-policy approach. This integrated model encompasses claims handling, risk engineering services, and multinational coverage, which helps to simplify the coverage management process. Zurich takes the lead in issuing the fronting policy, before ceding a portion of the risk to a selected group of reinsurers. This allows for efficient capacity deployment across international projects and timelines.

Tobias Cushing, the Head of Construction at Zurich North America, emphasized that this new solution is a direct response to the evolving requirements of clients. The construction landscape has witnessed projects increasing in both value and complexity, necessitating a more straightforward insurance process for mega projects. Zurich’s Fronted MBR is designed to offer contract certainty, ensure multi-year continuity, and provide global reach, all within a single, cohesive insurance structure.

The coverage is particularly targeted at owners and contractors managing multiple projects, each exceeding $250 million, especially when these projects span both domestic and international borders. Highlighted benefits of the Zurich Fronted MBR include:

• - A comprehensive single-carrier solution covering underwriting, risk engineering, invoicing, and claims administration.
• - Availability of multi-year terms that promote globally consistent coverage, easing project bidding and planning processes, while diminishing non-concurrency issues.
• - Streamlined claims administration via a dedicated point of contact who directly indemnifies either the owner or contractor, simplifying outreach and service.

Automation and Efficiency

A noteworthy feature of the Fronted MBR offering is the transformative automation of what was traditionally a manual project enrollment process. Zurich’s cross-functional team has developed a technology-driven workflow that enhances multinational coverage integration, premium calculations, and documentation processes, significantly boosting both efficiency and scalability.

Kelly Kinzer, Head of Specialties at Zurich North America, expressed pride in being able to introduce a Fronted Master Builders Risk program to their construction clientele, who have relied on Zurich’s expertise as an industry leader for over 25 years. He noted that previous traditional programs were unable to accommodate the scale of demand and complexity, making the launch of this new solution a critical addition to Zurich’s array of insurance offerings.

As the construction industry continues to evolve, Zurich North America is committed to aligning its offerings with the specialized needs of its customers, providing innovative solutions like the Fronted Master Builders Risk, which maximizes project efficiency and reduces complexity across construction management.

For more information about Zurich's construction solutions, visit their official website.