The 2006 Insurance Survey provides information about the types of insurance carried by REITs, as well as specific details regarding premiums, limits and deductibles of various policies.
The types of insurance covered in this study include: Directors & Officers (D&O), Employment Practices Liability, General Property, Environmental, Commercial General Liability (CGL), Excess Liability and Workers Compensation.
Among the notable findings in the study:
• The mean limit for current primary D&O insurance was $10.0 million, and the current median D&O annual total premium was $376,600.
• The number of REITs carrying environmental insurance has remained stable—57 percent in 2003 and 58 percent in 2006.
• CGL premiums have decreased significantly since 2003—from $1.4 million to $658,500, a 53 percent decrease, while average CGL limits have increased 103 percent.
• The average workers compensation premium has decreased 75 percent since 2003—from $2.1 million to $529,000, with the limits increasing by 24 percent.
Sixty-one companies, with an aggregate equity market capitalization of approximately $150 billion, participated in the survey.
