It's an Underwater Pig Bell!

This post is part of a series sponsored by Old Republic Surety.

For some of our insurance professional colleagues, the assurance business has always been a bit of a mystery. Perhaps the strange language we use to refer to “Bailiffs” and “Officers”. Perhaps it's the assurance writer's ability to quickly unlock the secrets of a client's financial statement and translate a page of numbers into complimentary comments or worrisome questions.

It's true that simple, clear language can break down barriers and make the business of underwriting more comfortable for some. In recent years I have seen a move to change the application and bond form language to refer to the Obligee simply as “Owner” and replace the term principal with “Contractor”. We need to avoid obfuscation. I mean, avoid overly complicated words.

One of my favorite sayings used in the assurance business came directly from the insurance industry. Sometimes we will receive a submission where the agent has clearly written at the top of the post “PIUW“. This represents Pig Iron Under Water. This old section comes from the early days of fire insurance. Pig Iron is an intermediate product in the steel industry, also known as pig iron. When making iron ingots (these are used to make Ductile Iron pipe, for example) they break the pieces of molten metal in a runner (known as pig pig) into water to cool. The cooling ingots form a shape similar to a baby pig, thus the name pig iron. The point of this statement is that Iron is considered non-flammable (It melts at 1200 degrees Celsius). Now put the iron under water, and as far as fire hazard is concerned, you have the safest hazard there is. So a pig iron under water is a sure thing. It's a safe bet. It's money in the bank. Absence of risk.

Of course a one-person underwater pig iron can be greasy rags in the corner on a hot day. That's why we have underwriters to make that determination.

We believe that insurance should be accessible to everyone and are ready to help you translate your next opportunity into business success. So if you have a construction client who needs a performance and payment bond or if you have a trade assurance requirement or question, contact us and we will help you with your assurance needs.

This blog was originally published on the Old Republic Surety website. Reproduced here with permission.