[sheet: PL Tower Summary]

[sheet: PL Tower Summary]
Field | Detail
Named Insured (Parent) | Nexford Industrial Holdings Inc.
Named Insured EIN | 83-2174650
Additional Named Insureds | Nexford Conveyor Systems, LLC (EIN 83-2174651); Triton Fastener Corp. (EIN 36-4892103); Marlowe Asset Management Precision Machining, Inc. (EIN 31-1784529)
Named Insured HQ Address | 2200 Corporate Center Drive, Suite 800, Schaumburg, IL 60173
Registered Address (Parent) | c/o Cobalt Ridge Technologies, 1209 Orange Street, Wilmington, DE 19801
NCS Facility Address | 4500 Industrial Parkway, Joliet, IL 60436
Triton Facility Address | 1010 Whitman Avenue, Rockford, IL 61101
Marlowe Asset Management Facility Address | 775 Summit Industrial Boulevard, Akron, OH 44311
Broker of Record | Ashford Breckinridge LLP
Broker Contact | Phillip Garza, SVP, Executive Risk Practice; Tamara Fisk, Account Executive, Manufacturing & Industrial
Broker Address | 321 South Plymouth Court, Suite 1500, Chicago, IL 60604
Policy Period | July 1, 2021 – July 1, 2022
Tower Type | Product-Liability / General Liability
Number of Layers | 4 (Primary GL/PL + 3 Excess)
Total Tower Aggregate Limit | $75,000,000
Total Annual Premium | $2,642,900
Rate-on-Line (Premium / Limit) | 3.52%
Self-Insured Retention (Primary) | $500,000 per occurrence
Product Recall Sub-Limit | $2,500,000 per occurrence / $5,000,000 aggregate
Completed Operations Tail | 10 years post-delivery
Annual SKUs Shipped (All Subsidiaries) | ~42,000
FY2021 Consolidated Revenue | $1,420,000,000
PL Premium as % of Revenue | 0.186%
Coverage Consultant (Sponsor-Retained) | Kessler Quinn Advisory Group (Arthur Kessler, Managing Director; Diana Cho, VP Actuarial Services)
Outside Insurance Counsel | Calderwood & Harkness LLP — Matter No. 1005-00003
Outside Litigation Counsel | Hollander Byrne & Strauss LLP (Catherine Byrne, Partner; Rafael Mendez, Senior Associate)
Prepared By | Naomi Petersen, Lead Associate, Calderwood & Harkness LLP
Date Prepared | May 2022
[sheet: Layer Detail]
Layer | Carrier Full Legal Name | Carrier Short Name | Carrier Domicile | Policy Number | Policy Period Inception | Policy Period Expiration | Coverage Type | Per Occurrence Limit | Aggregate Limit | Attachment Point | Self-Insured Retention | Annual Premium | Follow-Form (Yes/No) | Key Coverage Grants | Notable Exclusions | Product Recall Sub-Limit — Per Occurrence | Product Recall Sub-Limit — Aggregate | Completed Operations Tail | Defense Costs | Additional Insured Obligations | Cross-Liability / Severability | Other Insurance Clause | Notes
Primary GL/PL | Midland Casualty & Surety Company | Midland | Illinois | MCS-GL-2021-55671 | July 1, 2021 | July 1, 2022 | Commercial General Liability / Products-Completed Operations | $5,000,000 | $10,000,000 | N/A (ground-up, subject to SIR) | $500,000 per occurrence | $1,125,000 | N/A — Primary | Bodily injury; property damage; products-completed operations; personal & advertising injury; product recall (sub-limited); contractual liability | Pollution (absolute, with limited hostile fire exception); expected/intended injury; workers' compensation; professional liability; war/terrorism; nuclear; cyber/data breach | $2,500,000 | $5,000,000 | 10 years post-delivery | Duty to defend; defense costs within limits | Blanket additional insured for downstream vendors/contractors per written contract | Severability of interests clause included; each named insured treated separately | Primary and non-contributory as respects additional insureds per written contract | Primary layer; occurrence-based trigger; covers all three subsidiaries as named insureds
1st Excess / Umbrella | Great Basin Insurance Company | Great Basin | Nevada | GBIC-XS-2021-30892 | July 1, 2021 | July 1, 2022 | Excess Liability / Umbrella (follow-form with drop-down) | $25,000,000 | $25,000,000 | $10,000,000 (excess of Midland primary aggregate) | N/A (follows underlying SIR) | $862,500 | Yes — follows form of Midland primary MCS-GL-2021-55671 | Follow-form with drop-down for exhaustion of underlying; broader pollution exclusion language noted in coverage gap analysis | Pollution exclusion (broader than underlying — absolute with no hostile fire exception); professional liability; war/terrorism; nuclear; cyber | Follows underlying sub-limit | Follows underlying sub-limit | Follows underlying (10 years post-delivery) | Duty to indemnify only; no duty to defend; defense costs outside limits | Follows underlying | Follows underlying severability clause | Excess-only; 'other insurance' clause may conflict with Midland primary per preliminary gap analysis | Umbrella layer with follow-form provisions; pollution exclusion broader than primary — identified as coverage gap item
2nd Excess | Cornerstone Reinsurance Corp. | Cornerstone | New York | CRC-XS-2021-77450 | July 1, 2021 | July 1, 2022 | Excess Liability (follow-form) | $25,000,000 | $25,000,000 | $35,000,000 (excess of $10M Midland + $25M Great Basin) | N/A | $437,000 | Yes — follows form of Midland primary | Follow-form excess; attaches after exhaustion of primary + 1st excess | Follows underlying exclusions; includes additional nuclear incident exclusion; communicable disease exclusion | N/A — above recall sub-limit layer | N/A — above recall sub-limit layer | Follows underlying | No duty to defend; defense costs outside limits | Follows underlying | Follows underlying | Excess-only | Second excess layer; follow-form with schedule of underlying policies
3rd Excess | Allegheny Pacific Underwriters, Inc. | Allegheny Pacific | California | APU-XS-2021-14263 | July 1, 2021 | July 1, 2022 | Excess Liability (follow-form) | $15,000,000 | $15,000,000 | $60,000,000 (excess of $10M Midland + $25M Great Basin + $25M Cornerstone) | N/A | $218,400 | Yes — follows form of Midland primary | Follow-form excess; top of tower | Follows underlying exclusions; additional sunset clause on completed operations claims (may limit 10-year tail — identified in gap analysis) | N/A — above recall sub-limit layer | N/A — above recall sub-limit layer | Follows underlying subject to sunset clause review | No duty to defend; defense costs outside limits | Follows underlying | Follows underlying | Excess-only | Top excess layer; $15M limit brings total tower to $75M; sunset clause on completed operations identified as coverage concern
TOTAL | — | — | — | — | — | — | — | — | $75,000,000 | — | — | $2,642,900 | — | — | — | — | — | — | — | — | — | — | Rate-on-Line: 3.52% ($2,642,900 ÷ $75,000,000)
[sheet: Premium Summary]
Layer | Carrier | Per Occurrence Limit | Aggregate Limit | Attachment Point | Annual Premium | Layer Rate-on-Line | % of Total Premium
Primary GL/PL | Midland Casualty & Surety Company | $5,000,000 | $10,000,000 | $0 (subject to $500K SIR) | $1,125,000 | 11.25% | 42.6%
1st Excess / Umbrella | Great Basin Insurance Company | $25,000,000 | $25,000,000 | $10,000,000 | $862,500 | 3.45% | 32.6%
2nd Excess | Cornerstone Reinsurance Corp. | $25,000,000 | $25,000,000 | $35,000,000 | $437,000 | 1.75% | 16.5%
3rd Excess | Allegheny Pacific Underwriters, Inc. | $15,000,000 | $15,000,000 | $60,000,000 | $218,400 | 1.46% | 8.3%
TOTAL | — | — | $75,000,000 | — | $2,642,900 | 3.52% | 100.0%
[sheet: Claims History]
Claim / Item | Date Filed / Initiated | Subsidiary Involved | Case Number | Court / Jurisdiction | Description | Damages Sought | Status | Reserves | Paid to Date | Layer Responding | Notes
Higgins v. Nexford Conveyor Systems, LLC et al. | September 14, 2021 | Nexford Conveyor Systems, LLC | 2021-L-04382 | Circuit Court of Will County, Illinois | Catastrophic crush injury; defective emergency stop mechanism on Model NCS-7200 conveyor system at grain processing facility | $14,500,000 | Open — in discovery | Included in $8.3M total open reserves | Defense costs accruing | Midland Casualty primary (MCS-GL-2021-55671) | Litigation counsel: Hollander Byrne & Strauss LLP (Catherine Byrne)
Consolidated Builders Supply Co. v. Triton Fastener Corp. | November 2, 2021 | Triton Fastener Corp. | 1:21-cv-08914 | U.S. District Court, Northern District of Illinois | Structural failure of Grade 8 hex bolts in commercial building project; partial wall collapse; property damage and business interruption | $6,800,000 | Open — motion to dismiss denied February 11, 2022 | Included in $8.3M total open reserves | Defense costs accruing | Midland Casualty primary (MCS-GL-2021-55671) | Litigation counsel: Hollander Byrne & Strauss LLP (Rafael Mendez)
Triton Fastener Voluntary Product Recall | March 12, 2020 | Triton Fastener Corp. | N/A | N/A | Voluntary recall of industrial fastener lot; manufacturing defect | N/A | Closed | $0 | $1,100,000 | Midland Casualty primary — product recall sub-limit | Recall cost within $2.5M per occurrence sub-limit
NCS Conveyor Advisory Notice | August 7, 2020 | Nexford Conveyor Systems, LLC | N/A | N/A | Advisory notice (not formal recall) regarding conveyor system component | N/A | Closed | $0 | $340,000 | Midland Casualty primary — product recall sub-limit | Advisory notice; cost below per-occurrence sub-limit
9 Additional Closed Claims (5-year period) | Various (2017-2022) | Various subsidiaries | Various | Various | Various product-liability claims — all resolved/closed | Various | Closed | $0 | $3,280,000 | Midland Casualty primary | Combined paid on closed claims: $3.28M; part of $4.72M total paid
SUBTOTAL — Paid Losses (5-Year) | — | — | — | — | Total paid losses across 12 reported claims (9 closed + defense costs on open) | — | — | — | $4,720,000 | Midland Casualty primary | Includes closed claims, recalls, and advisory notices
Total Open Reserves | As of April 2022 | NCS & Triton | — | — | Reserves on Higgins and Consolidated Builders claims | — | Open | $8,300,000 | — | Midland Casualty primary | Combined reserves across two open claims
IBNR Estimate | As of April 2022 | All subsidiaries | — | — | Incurred but not reported estimate per Kessler Quinn Advisory Group actuarial analysis (Diana Cho, VP Actuarial Services) | — | Estimate | $2,100,000 | — | — | Per Kessler Quinn Advisory Group analysis for Veltrano Capital Partners
TOTAL INCURRED (5-Year) | — | — | — | — | Total incurred = Paid + Open Reserves + IBNR | — | — | — | $15,120,000 | Midland Casualty primary | $4,720,000 paid + $8,300,000 reserves + $2,100,000 IBNR = $15,120,000
[sheet: Named Insureds]
Entity Full Legal Name | Short Name | Entity Type | Jurisdiction of Organization | Principal Address | EIN | Business Description | FY2021 Revenue | Revenue Share | Role in Tower
Nexford Industrial Holdings Inc. | Nexford / NIH | Corporation | Delaware (incorporated); Illinois (HQ) | 2200 Corporate Center Drive, Suite 800, Schaumburg, IL 60173 | 83-2174650 | Industrial holding company; parent entity | $1,420,000,000 (consolidated) | 100% (consolidated) | First Named Insured
Nexford Conveyor Systems, LLC | NCS | Limited Liability Company | Delaware | 4500 Industrial Parkway, Joliet, IL 60436 | 83-2174651 | Manufactures heavy-duty belt and roller conveyor systems | $795,200,000 | 56% | Additional Named Insured
Triton Fastener Corp. | Triton | Corporation | Illinois | 1010 Whitman Avenue, Rockford, IL 61101 | 36-4892103 | Manufactures industrial fasteners, bolts, and anchoring systems | $397,600,000 | 28% | Additional Named Insured
Marlowe Asset Management Precision Machining, Inc. | Marlowe Asset Management | Corporation | Ohio | 775 Summit Industrial Boulevard, Akron, OH 44311 | 31-1784529 | Precision-machined automotive and construction components | $227,200,000 | 16% | Additional Named Insured
[sheet: Key Contacts]
Role | Organization | Contact Name | Title | Address
Client — Risk Management | Nexford Industrial Holdings Inc. | Trevor Haines | Vice President, Risk Management | 2200 Corporate Center Drive, Suite 800, Schaumburg, IL 60173
Client — Insurance & Claims | Nexford Industrial Holdings Inc. | Donna Kowalski | Director of Insurance and Claims | 2200 Corporate Center Drive, Suite 800, Schaumburg, IL 60173
Client — General Counsel | Nexford Industrial Holdings Inc. | Priya Sundaram | General Counsel & Corporate Secretary | 2200 Corporate Center Drive, Suite 800, Schaumburg, IL 60173
Broker — Executive Risk | Ashford Breckinridge LLP | Phillip Garza | Senior Vice President, Executive Risk Practice | 321 South Plymouth Court, Suite 1500, Chicago, IL 60604
Broker — Account Executive | Ashford Breckinridge LLP | Tamara Fisk | Account Executive, Manufacturing & Industrial | 321 South Plymouth Court, Suite 1500, Chicago, IL 60604
Primary GL/PL Carrier | Midland Casualty & Surety Company | — | — | Domiciled in Illinois
1st Excess / Umbrella Carrier | Great Basin Insurance Company | — | — | Domiciled in Nevada
2nd Excess Carrier | Cornerstone Reinsurance Corp. | — | — | Domiciled in New York
3rd Excess Carrier | Allegheny Pacific Underwriters, Inc. | — | — | Domiciled in California
Coverage Consultant | Kessler Quinn Advisory Group | Arthur Kessler | Managing Director | 55 Farmington Avenue, Suite 700, Hartford, CT 06105
Coverage Consultant — Actuarial | Kessler Quinn Advisory Group | Diana Cho | Vice President, Actuarial Services | 55 Farmington Avenue, Suite 700, Hartford, CT 06105
Outside Insurance Counsel | Calderwood & Harkness LLP | Douglas Fairchild | Responsible Partner | 155 North Wacker Drive, Suite 4200, Chicago, IL 60606
Outside Insurance Counsel | Calderwood & Harkness LLP | Naomi Petersen | Lead Associate | 600 Lexington Avenue, 30th Floor, New York, NY 10022
Outside Litigation Counsel | Hollander Byrne & Strauss LLP | Catherine Byrne | Partner, Lead Trial Counsel | 70 West Madison Street, Suite 3600, Chicago, IL 60602
Outside Litigation Counsel | Hollander Byrne & Strauss LLP | Rafael Mendez | Senior Associate | 70 West Madison Street, Suite 3600, Chicago, IL 60602
Sponsor — Board Observer | Veltrano Capital Partners, LLC | Celeste Brogan | Partner, Portfolio Operations | 301 South Tryon Street, Suite 2800, Charlotte, NC 28202