New Day Places OCIP for Chinese Drywall Contaminated Condo

New Day Places OCIP for Chinese Drywall Contaminated Condo

New Day Underwriting Managers was retained by the retail broker for its expertise in construction and remediation to place a project-specific Owner’s-Controlled Insurance Program (OCIP) for a luxury condominium project that contained contaminated Chinese drywall.  An intensive marketing effort was conducted to secure the desired coverage. A number of carriers declined this coverage due to the uncertainty of how the courts would handle the Chinese drywall pending lawsuits. However, New Day successfully obtained two bindable quotes from carriers who would consider the risk. The recommended and selected carrier offered five limit options with each offering a $25,000 deductible and 3-year policy term. The owner selected the $10 million/$10 million limit option. The coverage negotiated by New Day included Contractor’s Professional Liability (CPrL), Contractor’s Pollution Liability (CPL), and Third Party Pollution Liability (at covered locations).  New Day obtained the coverage with numerous enhancements including an eight year extended reporting period (ERP).  The carrier also agreed to develop an OCIP endorsement so that the general contractor and subcontractors at all tiers would be covered as insureds.

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