June 10, 2020: Sub-Contractor Default Insurance (SDI) will be even more important for Commercial General Contractors as construction resumes in the wake of the COVID-19 crisis. In this difficult time, Cove, a founding partner of Optio, has successfully renewed their underwriting facility in the London Market which ensures their U.S. and Canadian general contractors clients can continue to be able to acquire the protection they need.
Cove’s flagship product developed in 2016, led by Dale Underwriting Partners Syndicate 1729 at Lloyd’s, can quote gross premiums totalling up to $135 million, making it one of the largest binding authorities in the market on a single contract. Under the binder, Cove underwrites SDI policies with limits of up to $50 million each loss limit and $150 million aggregate limit for its U.S. and Canadian clients. Alongside Dale as the lead carrier partner, nine further highly regarded insurers provide capacity to Cove.
The 2020 renewal placement faced many hurdles due to the pandemic but the Optio team led by Andrew Smallshaw (Managing Director Bay Risk Services) and Paul Jansen (Founder of Cove and Head of Construction) were able to successfully complete the placement, with both existing and new participants.
Optio CEO Kevin Hastings said:
“We have often heard lately that the London market is operating at full speed during the lockdown crisis, and the completion of this large binding authority proves it. Cove is now able to offer uninterrupted service to its many clients in the U.S. construction industry, which will be especially valuable as projects resume when various restrictions are lifted and the industry attempts to get back to business as usual.”
Duncan Dale, Active underwriter of Syndicate 1729, said: “I am pleased to continue to support Cove and Optio in their SDI risk underwriting. The MGA places very high importance on risk management and customer service allowing Cove to deliver consistently high-quality risks to its carrier partners, the London market should be proud to be able to continue to deliver ongoing support for this truly specialty business in these challenging times.