Changed MGA to MGU in paragraph 6. Replaced paragraph 7 with new copy that provides greater detail on Shepherd's existing offerings.

By James Thaler

March 31 - (The Insurer) - Shepherd is expanding beyond its core casualty construction focus with the launch of a new builders' risk program offering up to $75 million in limit with capacity backing from Allianz.

The program is offering nationwide admitted coverage on A-plus rated paper from AGCS Marine Insurance Company. It is aimed at general contractors, developers and project owners and has an appetite focused on commercial risks and more specifically non-combustible construction.

In addition to project-specific placements, the Justin Levine-led insurtech plans to support clients with master builders’ risk programs, offering portfolio-wide rate and coverage certainty.

The nationwide program will also offer selective support for wood frame and catastrophe-exposed regions with limits deployed primarily in a lead position, offered as either a standalone coverage solution or quota share for larger placements.

Shepherd will have the ability to support larger project types up to $150 million in limit, also on a standalone basis and subject to additional underwriting review.

The new program is designed to complement the MGU’s existing in-force casualty offerings, which have grown significantly since launching in early 2024.

Shepherd already provides primary general liability and supported lead excess positions with up to $10 million in limit for large commercial projects or renewable contractor programs. They provide unsupported excess capacity up to $12.5 million in limit.

A spokesperson for Shepherd confirmed the new builders’ risk launch in a statement to Program Manager, saying that the new program “will further enhance our robust suite of project-specific coverages”.

“Today, we’re thrilled to announce the launch of Shepherd’s builders’ risk program, reinforcing our commitment to supporting the construction industry with best-in-class insurance solutions,” the statement continued.

The insurtech said that, in association with Allianz, the new offering brings “significant capacity and ensures superior protection for our partners and their projects”.

“With this expansion, Shepherd will also strengthen its commitment to technology-driven underwriting, expanding our pioneering Shepherd Savings program into builders’ risk coverage.

“As always, we’ll continue to deliver a streamlined experience for brokers and insureds along the way,” it added.

“Our mission remains unchanged: to make construction safer and more sustainable through innovative commercial insurance solutions. Today, we’re one step further towards that goal, and couldn’t be more excited for the road ahead.”

EXPANDING BEYOND CONSTRUCTION CASUALTY

The insurtech said it has grown by three times annually in casualty lines since its inception, rapidly expanding its footprint in the construction insurance market.

Shepherd said its recent performance includes six straight quarters of premium growth, driven by a 145% uptick in submissions over the same timeframe.

“Despite operating with a limited distribution of retail brokerage partners, we have consistently found opportunities to expand partner relationships with regional offices across the U.S. and plan to continue this retail-only approach with our new builders’ risk program,” Shepherd said.

The company’s current product suite targets middle market to major accounts and spans primary casualty lines including general liability, workers’ compensation and commercial auto, as well as umbrella and excess casualty.

It noted that across all lines, it supports comprehensive contractor programs as well as project-specific placements (contractor-controlled insurance programs, owner-controlled insurance programs and joint ventures).

The insurtech also said that it has consistently delivered innovative solutions tailored to meet the evolving needs of contractors, while its partnerships have allowed it to scale efficiently while maintaining top-tier service.

In 2024 the company introduced Shepherd Savings, a proprietary premium-discount initiative rewarding builders that leverage proven construction technologies in their project delivery.

The company said that Shepherd Savings will be available with its builders’ risk policies, with immediate support for technology partners such as Procore and OpenSpace.

“By leveraging real-time project data and predictive analytics, Shepherd Savings allows insureds to achieve significant savings on their coverage upfront,” the company commented.

“Looking ahead, we will further expand Shepherd Savings through additional technology partnerships that help mitigate common builder’s risk exposures such as water/leak detection, fire prevention, and beyond,” Shepherd said on Monday.

“These enhancements will continue to bolster our underwriting capabilities and risk assessment tools,” it added, saying that it plans to announce further additions to its growing marketplace of construction-insurance technology partners.