Like virtually all modern mega-tall skyscrapers, the Columbia Center (commonly called the Columbia Tower) is not insured by a single insurance company. Because the cost to replace a 76-story skyscraper exceeds $1 billion, the risk is far too massive for one carrier to hold on its balance sheet. Instead, the building's owner—global real estate investment firm Gaw Capital Partners—utilizes what is known in commercial real estate as a layered insurance program or an insurance syndicate.
The structure of how a building of this magnitude is insured involves the following layers: 1. The Lead Underwriter (The Primary Layer) A major global commercial lines insurer acts as the "lead." They write the primary policy, handle the paperwork, and take on the first layer of risk (for example, the first $10 million to $25 million of any property damage or liability claim). Common leads for properties of this scale include global giants like:
* AIG (American International Group) * Chubb * Zurich Insurance Group * Berkshire Hathaway Specialty Insurance
