Building business and family

IBC: How did Masters Insurance get its start in the construction sector?

Sam Ciccolini: Back in 1968, there were a few emerging contractors who reached out to us to facilitate unique insurance and surety bonding solutions. One contractor, who is still one of our valued clients today, was involved in a project at the international airport and was in need of a bond. Although we were unable to facilitate his request at that time, we were able to direct him to where and how he could get one.

This marked one of many pivotal points for us to cultivate our knowledge and special­ization in the construction world. Over the years, we worked hard to acquire the neces­sary skill sets and learn the intricacies to facili­tate protection requirements for projects and contractors of various complexities.

IBC: How have you grown your construction expertise since then?

SC: Around 1970, I became a member of the Canadian Construction Documents Committee [CCDC], where I reviewed and helped put together the groundwork insur­ance language for construction contracts that were being issued on most construction sites. Through our experience with CCDC, we obtained valuable information and forged strong relationships with several of the major construction-focused insurance companies.

As we continued to grow as a business, we extended our membership to all of the main construction-related associations.

There was also a growing need for strong technical expertise in our market, so we hired experienced individuals from other broker­ages and insurers to better service our clients. Once we had the right people and reputable insurers on our side, we were able to aggres­sively compete in quoting and securing insur­ance and surety coverage for larger construc­tion companies.

IBC: How do you stay up-to-date with construction risks and trends?

Robert Ciccolini: About 80% of our book of business is construction and realty-related. With our volumes, we are engaged with industry happenings on a daily basis. Our commercial department is set up in team units that handle an assigned group of client accounts. Team members are actively involved in all aspects of underwriting and servicing, as well as analyzing claims data related to construction risk. We also attend project site inspections and participate in various industry events to receive firsthand knowledge and see the real-life risk exposures our clients face.

IBC: What are the main challenges in this space?

RC: One thing that is a continuous challenge in this space is the need to make sure policy coverage evolves with the actual risk. We have carved out our niche by adapting actual expos­ures from construction projects and different subcontractor risks that we had to tailor manuscript and manipulate coverage for.

Another challenge would be related to the significant increase in GTA residen­tial condo development and homebuilding. There are many long-standing and experi­enced developers with a proven track record and industry connections; however, in recent years there has been an influx of new investors to the market who are assuming the role of developer. A challenge to any insurance broker serving these new developers would be to focus on expertise and added value through consultation, all the while providing competitive terms. A new developer looking to build a professional team around them will put trust in a broker who can anticipate all aspects of their oper­ational and project insurance requirements.

IBC: What differentiates Masters Insurance from other construction insurance specialists?

RC: An important part of our service is the consultative side of what we do on a day-to-day basis, and this is where we feel we differentiate ourselves in this industry. We are heavily involved with the drafting and coordinating of insurance language with lawyers and law firms that handle many of our construction, developer, and homebuilder client contracts and agreements – which are intricate parts of their projects and oper­ations. Our ability to then procure competi­tive, tailored insurance and surety solutions that complement our consulting work allows us to hold a unique position in this space.

IBC: How do you ensure your clients are properly covered?

SC: For us, formulating an insurance program and coverage recommendation starts with learning as much as we can about a client’s business operations or the specific project to be constructed. We have an extensive under­writing review process – tailored specifically to our construction and builder clientele – where we obtain the critical details necessary to build a proper policy and align the risk with a suitable insurer.

Our approach is to not only provide coverage at competitive terms, but to continu­ously consult and advocate on our client’s behalf in all situations related to their insur­ance and surety needs.