Bordentown, New Jersey (April 1, 2008) – New Day Underwriting Managers LLC, a specialty resource of high-quality environmental and construction related professional liability insurance coverage to agents and brokers, today announced the results of its Market Update 2008. The new report, which is updated annually by the company, offers a survey of the trends and growth opportunities in the environmental and construction-related professional liability marketplace to the brokers and agents representing the construction and contracting fields.
“New Day Underwriting is dedicated to helping agents and brokers better understand the issues driving the purchase of environmental and construction-related professional liability exposures,” says Jefferey S. Lejfer, president of New Day Underwriting. “As a result, each year we analyze our collective knowledge about this growing specialty market and issue a report that helps our partners in the insurance industry navigate through all the available options and select the optimal solutions for their customers.”
“The New Day Market Update 2008 continues this effort by reviewing purchasing trends in 2007 and forecasting the motivational factors that will likely drive contractors toward the purchase of professional liability insurance products throughout the year. These forecasts are based on an assessment of market trends, input from our many insurance business partners, new governmental regulations and the evolution of environmental risks that many contractors may not have experienced in the past,” explains Jeff Slivka, the company’s senior vice president.
According to the New Day Market Update 2008, several key trends are likely to influence the purchase of Pollution Legal Liability (PLL), Contractors Professional Liability (CPL) and Contractors Professional Liability (CPrL) insurance products in the coming year. For instance, New Day foresees PLL continuing to comprise approximately 60 percent of the entire $2.8 billion environmental marketplace. This is due to its ongoing use as a risk financing technique in real estate transactions as well as the influence of other purchasing motivators driven by regulatory, contractual, financial and risk management concerns.
In the area of CPL insurance, which represents approximately 30 percent of the entire environmental insurance marketplace, New Day reveals that more contactors are buying this specialty coverage as a value purchase and a method for investing savings to round out their insurance portfolios. Buying motivators will also include contractual requirements, asset protection and loss events.
In addition, the update reports that CPrL premiums, which are estimated in the $250 million range, are likely to grow at a rate of about 15 to 20 percent per year. Buying motivators will also be strengthened by an increasing trend within the industry to create collaborative construction teams as well as the introduction of additional competition among insurers to provide combined coverages.
“Our analysis of the marketplace indicates an expanded need for CPrL coverage in 2008 and beyond,” adds Lejfer. “With programs such as Leadership in Energy & Environmental Design (LEED), a push for sustainable structures, advances in Building Information Modeling (BIM) and the prevalence of Public/Private Partnership (P3) projects, contractors will continue the search for the optimal CPrL solution for their unique professional liability risks.”
“As a result, the broadening for the market, expansions in coverage and the softening of rates, will also converge to make CPrL programs far more attractive to constructive firms that had never contemplated coverage in the past or previously thought it was far too expensive.”
New Day Underwriting Managers Announces Results of Market Update 2008
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