With the limited number of carriers offering project professional liability, differences in professional liability insurance from one carrier to the next and the high cost of insuring the design team on a traditional construction project, many owners are now turning to Owner's Protective Professional Indemnity Insurance (OPPI) and Owner's Protective Professional and Excess Contractor's Pollution Liability Insurance (OP3) to insure their exposure associated with design liability and other professional risk when hiring design professionals or design builders.  New Day Underwriting Managers can enhance the education of our broker partners with regards to these products and assist them in obtaining the optimal risk management solutions for their insureds. 

OPPI/OP3 provide first-party indemnity to the owner (insured) for damages they incur as a result of negligence of the design team they hire to design their projects.  However, they do not extend coverage to the design team so the potential for defense cost eroding the limit of liability, a typical concern with a project professional liability program, is drastically reduced, if not eliminated.  The OPPI is in the name of the owner and sits in excess of the design professional's professional liability insurance and essentially supplements coverage and capacity that the design firms bring to the project via their practice programs.  In addition, these programs can also provide excess contractors pollution liability coverage above the general contractors program.

OPPI premiums are usually 30% to 40% lower than a typical project professional liability placement.  However, for owner's of large construction projects that want to ensure they are protected properly from professional liability of the design team, there are numerous benefits.

New Day has been effectively assisting our broker clients for over 6 years with OPPI and OP3 products even though our experience extends back to the late 1990s in these products.  Whether it's a single $75,000,000 commercial building project, an owner with multiple habitational/condominium projects and an annual construction volume of $250,000,000 or a blanket program for multiple construction projects,  New Day has assisted our clients in understanding the features, benefits and customization potential of these products. 

New Day has successfully customized OPPI and OP3 programs to meet the changing needs and risks of all types of construction firms.  We encourage you to contact our staff, which includes professional engineers, geologists, attorneys and environmental engineers.  Allow the New Day team to provide some insight into the world of OPPI and OP3 coverage for your contractors.