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Clean Room Equipment Service Provider

Posted: Fri Jul 24, 2009 6:46 am
by ParkerH
I'm looking for CGL for a startup with 25+ yrs working as a service provider to the clean room facilities of the semi-conductor industry. Insured goes into sterile/cleanroom operations and services manufacturing tools and equipment. Very little if any real end use product defect exposure due to his operations.

All the mainstream Tech UWs (Travelers, Hartford, CNA, etc..) have declined. Looking for admitted but would go E&S if necessary.

Any suggestions? THANKS

Re: Clean Room Equipment Service Provider

Posted: Fri Jul 24, 2009 9:40 am
by pita3333
What are the reasons for the declines? I see that this is a startup, what is the experience of the owner/staff?

Re: Clean Room Equipment Service Provider

Posted: Fri Jul 24, 2009 12:15 pm
by ParkerH
The owner has 25 years+ in the field and all employees are 10+ years working for other companies doing the same type of work. The replies from UW have been vague, but mostly along the lines of the GL exposure being to great due to the high value and replacement cost of clean room equipment.

Basically all my guy is doing is routine maintenance and servicing/cleaning of tools used on the chip making process. I've been in these clean rooms as we write some tech business (I'm in Austin) and it doesn't seem too risky to me, but apparently everybody is afraid of it.

Re: Clean Room Equipment Service Provider

Posted: Fri Jul 24, 2009 1:05 pm
by pita3333
I had a feeling that was the situation. Looks like the underwriters are being scared away by the "clean room" aspects.

Who is providing coverage on their competition?

Perhaps arrange a on-site visit with the most likey underwriter to allay their concerns?
Or, provide additional information on the operations and experience of the company.

Would the underwriter have same concerns if that equipment was not in a "clean room" environment? If so, then you might be doomed. If not, then you have an angle and just need to get them to understand why the exposure is no different than if it were not in the "clean room".