RT Specialty’s Environmental and Construction Professional (RT ECP) Practice recently released its 2022 Market Update to help agents and brokers nationwide better understand the state of today’s commercial construction marketplace and the strategies needed to overcome the risks, exposures and liabilities impacting this highly-specialized field.
Representing the collective knowledge of RT ECP’s industry specialists and representatives from several leading insurers, the 2022 Market Update was developed to provide an insightful look into the “state-of-the-marketplace” surrounding the latest Contractors Pollution Liability (CPL), Pollution Legal Liability (PLL), General Liability/Pollution Legal Liability (GL/PLL), General Liability/Contractors Pollution Liability/Professional Liability (GL/CPL/PL), Architects & Engineers Professional Liability (A&E PL), Contractors Professional Liability (CPrL), Owners Protective Professional Indemnity (OPPI) and Real Estate Developers (RED) Professional Liability products.
“The RT ECP team has dedicated the past 16 years to helping our retail agents and brokers navigate the complex commercial insurance marketplace and develop solutions designed to protect their clients from the myriad of construction and environmental challenges that confront the industry daily,” says Jeff Slivka, President, RT ECP. “The 14th annual version of this report is just another example of our mission to provide our customers with the in-depth knowledge, responsiveness and support necessary to specify and purchase competitive risk management solutions in today’s marketplace.
In addition to providing updates on rates, capacity, claims, buying motivators and underwriting forecasts, the 2022 Market Update also cites the areas of growth and concern surrounding each product. Driven by an increase in claims activity across most of the coverage platforms as well as the ongoing impact of COVID-19, the report noted that the industry in general lowered its tolerance for losses, while expanding the exclusionary language embedded in most policies. This also accompanied the more intensive scrutiny of the terms and conditions offered to insureds, especially the programs of lower-tiered contractors or design/build firms.
As for specific product areas, the 2022 Market Update discussed the continued growth and stabilized rates of the CPL marketplace despite the impact of COVID-19, which precipitated the inclusion of communicable disease exposures. Insurance specifications, asset protection and the awareness of pollution claims were among the strongest buying motivators with mold, bacteria and the emergency response of sudden & accidental pollution conditions typically leading the way for claims landing in the six- to seven-figure range.
Other highlights included the industry’s steady evolution from monoline CPL insurance policies to combined CPL/Contractor’s Professional Liability (CPrL) programs that now include Faulty Workmanship coverage in a growing number of programs. Additional 2022 Market Update insights highlighted the:
- A&E PL space, which is increasingly gaining popularity among architectural design firms, engineers, construction management agencies, interior designers, space planners and surveyors for features like the Rectification Expense, which allows insureds to collect against professional liability limits on a first-party basis
- OPPI marketplace, which grew in prominence throughout 2021 as a less expensive alternative for insuring against the catastrophic errors committed during the performance of design and other professional services
- RED space that is continuing to grow with four insurers now offering standalone products and numerous other carriers providing the coverage on an ad hoc basis to developers looking to mitigate the risks associated with real estate development projects and rebalance their commercial and residential assets
To view the entire 2022 Market Update please click here or feel free to reach the company directly at https://rtspecialty.com/product/environmental-construction-professional-liability/ or 609-298-3516 for more details.
About RT Environmental & Construction Professional
RT Environmental and Construction Professional (RT ECP) is a part of the RT Specialty division of RSG Specialty, LLC, a Delaware limited liability company based in Illinois. RSG Specialty, LLC, is a subsidiary of Ryan Specialty Group, LLC. RT ECP provides wholesale insurance brokerage and other services to agents and brokers. RT ECP does not solicit insurance from the public. Some products may only be available in certain states, and some products may only be available from surplus lines insurers. In California: RSG Specialty Insurance Services, LLC (License # 0G97516). © 2021 Ryan Specialty Group, LLC
This Market Update is provided for general information purposes only and represents RT Specialty’s opinion and observations on the current outlook of the Environmental and Construction Insurance market and does not constitute professional advice. No warranties, promises, and/or representations of any kind, express or implied, are given as to the accuracy, completeness, or timeliness of the information provided in this Market Update. No user should act on the basis of any material contained herein without obtaining professional advice specific to their situation.