Jeff Slivka recently addressed attendees at the 29th Institutional Risk Management Institute (IRMI) Construction Risk Conference on the common problems that can result in gaps in contractors general liability and umbrella coverages.

Bordentown, New Jersey (December 16, 2009) – Jeff Slivka, executive vice president of New Day Underwriting Managers LLC and an expert on a wide range of professional and environmental liability risk management topics for the construction industry, recently addressed attendees at the 29th Institutional Risk Management Institute (IRMI) Construction Risk Conference on the common problems that can result in gaps in contractors general liability and umbrella coverages.

“There are numerous methods for closing the holes in basic policy forms and avoiding unexpected coverage challenges that can cause potentially devastating financial losses,” said Slivka during the leading risk and insurance solutions conference held in Washington, D.C. “Over the past two to three years, the insurance marketplace has greatly expanded to accommodate construction industry demands for enhanced and encompassing forms of contractors pollution and professional liability insurance. As a result, the market now consists of an assortment of new insurance options as well as old ones that have been updated with new twists.

Subsequently, Slivka strongly recommended the purchase of some form of contractor’s professional liability (CPrL) that provides coverage against third party suits alleging negligence in the performance of professional services. In fact, in recent years contract requirements by owners and general contractors (GCs) have been among the leading drivers of CPrL insurance purchases. This is due to the increased awareness of exposures, industry incidents and the desire of construction firms to finance professional liability loss through CPrL coverages.

Another solid consideration according to Slivka are programs that combine CPrL and Contractor Pollution Liability (CPL) programs to offer cost-effective financing solutions to contracting firms possessing both professional liability and environmental liability exposures. Simply put, CPL insurance covers bodily injury, property damage, defense and clean-up as a result of pollution conditions caused by contracting operations performed by or on behalf of the contractor. Subsequently, this combined form of insurance offers the ease of providing both forms of coverage without the issue of two premiums, two retentions and differing terms and conditions.

“Because of these benefits, over the past five years the construction marketplace has seen a dramatic increase in contractors buying the combined program versus separate CPrL or CPL policies,” offered Slivka. “In this way, coverage isn’t sacrificed for cost and through the use of a combined program contractors can increase the aggregate to twice the per-claim limit as well as enjoy the benefits and flexibility of both.”

To become better acquainted with all the alternatives in the marketplace, Slivka also suggested that contractors should specifically deal with insurance professionals that are complete technicians at offering optimal solutions and thoroughly understand every aspect of the environmental and professional liability insurance marketplace. “Always make sure the coverage matches the risk,” added Slivka. “Far too often, contactors make the mistake of agreeing to the ‘spirit’ of the coverage rather than the actual endorsement. These are the types of mistakes that can lead to ruin for a general contractor and further underlines the need for expert advice from proven, experienced and knowledgeable insurance professionals.”

About New Day Underwriting
New Day Underwriting Managers LLC is a specialty resource for agents and brokers, assisting them and their clients find appropriate, high-quality environmental and construction related professional liability insurance coverages. The company offers agents and brokers single-point access to an ample portfolio of products and services provided by the nation’s largest environmental and professional liability insurance providers.