For Immediate Release

CONTRACT REQUIREMENTS AND ASSET PROTECTION DRIVING DOUBLE-DIGIT GROWTH FOR CONTRACTORS PROFESSIONAL LIABILITY COVERAGE

New Day Market Update Reports Growing Use of Specialized Coverages

BORDENTOWN, NJ, April 16– Contract requirements and asset protection continue to drive annual double-digit premium growth in Contractors Professional Liability (CPrL) market, according the New Day Underwriting Market Update 2007. 

Issued by New Day Underwriting Managers, the Update provides a state-of-the market overview of specialty coverages including construction-related professional liability coverages. The full report is available online at www.newdayunderwriting.com

“Our market research validates that many contractors are seeing the benefits of using specialized CPrL coverage especially in meeting contract demands,” said New Day Senior Vice President Jeff Slivka. “Owners and General Contractors (GCs) are becoming more aware of their professional liability exposures and to protect their business assets are requiring subcontractors providing some level of professional services to carry separate CPrL coverage.  Although many rely on the Commercial General Liability (CGL) policy, it doesn’t address the exposure appropriately.”

“Broader coverage is the biggest driving factor,” said Mr. Slivka.  “Consider coverage for  economic damages -- such as acceleration costs, delay damages, cost for remedial design, reconstruction, and the like -- arising out of professional services performed by or on behalf of a contractor. A loss would not be covered under the CGL but would be covered under the CPrL,” he explained.

“It is this broader coverage that is clearly driving the growing demand for coverage,” said Mr. Slivka.  “According to the New Day Market Update, annual CPrL premiums are estimated at approximately $250 million and the market is growing at a rate of 15% to 20% annually.”  

“Our Update aims to provide insight into the issues and trends that are driving the market,” said Mr. Slivka.  “With this information, we believe clients and their brokers are more equipped to navigate the available risk management options and find optimal solutions.”

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.

###