It’s Pig Iron Under Water!

This submit is a part of a sequence sponsored by Previous Republic Surety.

To a few of my fellow insurance coverage professionals, the surety enterprise has at all times had an aura about it. Maybe it’s the unique language we use referring to “Obligee’s” and “Principals”. Possibly it’s the surety underwriter’s skill to rapidly unlock the secrets and techniques of a consumer’s financial statement and translate a web page of numbers to feedback of reward or questions of concern.

It’s true that straightforward, clearer language can break down boundaries and make writing surety enterprise extra snug for some. In recent times I’ve seen a motion in altering software and bond form language to discuss with the Obligee merely because the “Proprietor” and exchange the phrase principal with “Contractor”. We have to eschew obfuscation. I imply, keep away from overly difficult phrases.

One in every of my favourite idioms used within the surety enterprise got here immediately from the insurance coverage business. We’ll generally obtain a submission the place the agent has written clearly on the prime of the submission “PIUW“. This stands for Pig Iron Underneath Water. This previous part comes from the early days of fireplace insurance coverage. Pig Iron is an intermediate product of the iron business, often known as crude iron. When Iron ingots are made (these are used to make Ductile Iron pipe, as an illustration) they break off molten items of the iron off the runner (referred to as the sow) into water to chill. The cooling ingots type right into a form that appears like a child pig, thus the title pig iron. The purpose of the assertion is that Iron is taken into account comparatively inflammable (It melts at 1200 levels Celsius). Now put iron below water, and by way of a hearth danger, you’ve gotten in regards to the most secure danger there may be. So pig iron below water is a option to signify a certain factor. A secure guess. It’s cash within the financial institution. It’s the absence of danger.

After all one particular person’s pig iron below water could be one other particular person’s oily rags within the nook on a scorching day. For this reason now we have underwriters to make that willpower.

We consider surety ought to be accessible to everybody and we’re prepared that will help you translate the following alternative into enterprise fortune. So you probably have a development consumer that wants a performance and payment bond or you probably have industrial surety want or query, contact us and we are going to allow you to together with your surety wants.

This weblog was initially revealed on the Old Republic Surety website. It’s reproduced right here with permission.