While comparisons to mold and asbestos are inevitable, liability insurance exposures arising from the installation of tainted Chinese drywall in Southeast homes will not grow to asbestos-like proportions, legal experts predicted recently.
Still, news of the filing of the first class action over defective drywall may have already moved some at-risk suppliers, builders and contractors into the surplus lines market, a specialty insurance underwriter noted.
"We believe that the litigation explosion surrounding Chinese drywall issues is only at its beginning–not nearly at its peak," said Robert Horst, a founding partner of Nelson Levine deLuca & Horst, a Blue Bell, Pa.-based law firm that represents insurers, kicking off a recent webinar on the coverage implications of this emerging exposure.
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