TLPCA discuss EIFS contractor problems with state insurance commissioner
In August, the Texas Lathing and Plastering Contractors Association’s President Kevin Whitfield and George Adams, accompanied Executive Director, Wayne James, to an appointment with the Honorable Jose´ Montemayor, Commissioner of Insurance for the State of Texas, as reported by the TLPCA’s newsletter The Listening Post. James had asked for the appointment to discuss the continued difficulty EIFS contractors are having in obtaining general liability insurance.
This meeting presented the opportunity to update both the commissioner and two key members of his staff on recent developments such as new moisture management systems, changes in the building codes, new warranty programs, requirements that each contractor be certified by the manufacturers whose product was being used and other things.
James also inquired about the possibility of excluding EIFS from general liability and having it covered by product liability. He mentioned how some carriers are now refusing to issue policies on stucco as well as EIFS and that others will not allow EIFS trim to be applied to a completed stucco project and other problems that some contractors have had in obtaining EIFS coverage.
The commissioner cited several occasions where he had visited with carriers about the particular problems that not only EIFS contractors and truckers were having in obtaining general liability coverage but also plumbers, hvac contractors, roofers and others. He also said that the reinsurance market had eased up some in recent months and this was a good sign that the carriers would be easing their requirements on construction and several other industries in the future.
The three TLPCA members noted the commissioner’s knowledge of EIFS and the amount of information on EIFS his staff had collected from insurance carriers before the meeting. They asked James to send them additional information.
“It was quite obvious the commissioner and his staff understood contractor problems in obtaining general liability coverage and also our systems and products,” said James.
James reported that the association and the commissioner are continuing to work to try to solve the problems that contractors are experiencing with EIFS.