It’s Pig Iron Below Water!

This publish is a part of a collection 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”. Perhaps it’s the surety underwriter’s capacity 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 limitations and make writing surety enterprise extra snug for some. Lately I’ve seen a motion in altering software and bond form language to consult 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.

Considered one of my favourite idioms used within the surety enterprise got here straight from the insurance coverage trade. We are going to generally obtain a submission the place the agent has written clearly on the high of the submission “PIUW“. This stands for Pig Iron Below Water. This previous section comes from the early days of fireplace insurance coverage. Pig Iron is an intermediate product of the iron trade, also referred to as crude iron. When Iron ingots are made (these are used to make Ductile Iron pipe, for example) they break off molten items of the iron off the runner (generally known as the sow) into water to chill. The cooling ingots kind right into a form that appears like a child pig, thus the identify 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 underneath water, and by way of a hearth threat, you’ve gotten in regards to the most secure threat there may be. So pig iron underneath water is a technique to signify a positive factor. A protected wager. It’s cash within the financial institution. It’s the absence of threat.

After all one particular person’s pig iron underneath water will be one other particular person’s oily rags within the nook on a sizzling day. For this reason we’ve got underwriters to make that willpower.

We imagine surety needs to be accessible to everybody and we’re prepared that can assist you translate the subsequent alternative into enterprise fortune. So when you’ve got a building consumer that wants a performance and payment bond or when you’ve got industrial surety want or query, contact us and we’ll make it easier to together with your surety wants.

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