It’s hard to believe the first quarter of 2020 is behind us. It’s even harder to believe that the first quarter of 2020 brought unprecedented change in our business, our economy, our world and our daily lives. That change came in the form of a virus, COVID-19 aka Coronavirus. I didn’t want to take it seriously at first but since its landing in Seattle and San Francisco, who can ignore the potential devastation it could wreak. Even more, the county in which I live in Pennsylvania has the highest number of reported COVID-19 cases in the state.
We have yet to see the total impact it will have on our insurance industry but there is no doubt it will. The question is how extensive will it be? I believe we’ll find out the short term impact in April. Until then, please know that although the Coronavirus has presented major challenges to all of us, our team is still readily available via phone, email and even videoconference to meet your needs, whatever they may be.
Like many of our trading partners and clients, RT has also instituted travel bans and restrictions and best practices to reduce the spread of the virus and robust technology that allows us to work remotely without skipping a beat. Don't hesitate to call.
In this issue of the Standard, we present our 2020 Market Update, our annual publication that explores trends in the products we offer. In addition, we discuss three hot topics in the industry today:
John Heft discusses the likelihood of insuring the impact of the Coronavirus under a pollution legal liability (PLL) policy.
Joe Reynolds and I discuss Faulty Workmanship Coverage as a fairly new offering in the Contractors Professional Liability space.
Brittany Negron provides a Risk Tip regarding poly- and perfluroalkyl substances (PFAS) and how the insurance marketplace is responding to this emerging contaminant. Read on in this issue to learn more.
Finally, our thoughts and prayers go out to everyone who has been impacted, directly or indirectly, by this terrible virus. We can only wish the impact on human health in our communities and around the world are minimized.
I hope you enjoy this issue of the Standard and look forward to a productive second quarter.
HOT TOPIC: Coronovirus and Your Clients
By: John Heft. Senior Vice President
RT ECP is closely monitoring the rapid developments and potential impacts of the COVID-19 (coronavirus) to our clients.
The World Health Organization declared the Wuhan Coronavirus a “public health emergency of international concern.” In addition, the Centers for Disease Control and Prevention (CDC) warned Americans that it is not a question of if coronavirus will spread, but when. This has created significant uncertainty in the insurance marketplace and has prompted articles in various insurance publications as well as opinion articles from several national law firms.
RT's ECP has also been receiving inquiries from our brokers regarding the availability of coverage for coronavirus. Needless to say, we are closely monitoring the marketplace. The availability of coverage will depend upon the policy wording and the circumstances of each claim. Coverage may be afforded in Pollution Legal Liability (PLL) policies via Disinfection Expenses, which often includes coverage for viruses and bacteria. Depending on the class of business, coverage restrictions may include Communicable Disease Exclusions, Coverage Sublimits, and/or a requirement that the virus/bacteria be facility-borne. Any one of these restrictions may provide markets with a basis to deny a coronavirus-related claim. A specific coverage situation will dictate how a carrier will respond to the facts presented. Upon submitting a claim, carriers will make a determination if coverage is provided.
Please contact your RT ECP consultant today for more information regarding your insureds' specific circumstances.
2020 Market Update
The specialty lines insurance landscape is a constantly changing environment and the areas of construction-related professional liability and environmental insurance are no different.
Our 2020 Market Update is RT ECP's annual recap of the environmental and construction-related professional liability insurance industry with predicted trends for this specialty niche. It represents the collective knowledge of our RT ECP specialists and includes an annual survey of our staff to define the “state-of the-marketplace.” In addition to uncovering specific market trends, the 2020 Market Update reviews the strategies needed to overcome challenges and protect against the risks that can potentially financially cripple businesses.
Jeff Slivka
Joe Reynolds
Faulty Workmanship Coverage: An Evolving Oddity in Contractors Professional Liability Insurance
Faulty work coverage or faulty workmanship liability coverage is a relatively new offering in the Contractors Professional Liability space. This coverage can be a helpful supplement to commercial general liability policies held by specialty trade contractors. In their recent article titled "Faulty Workmanship Coverage: An Evolving Oddity in Contractors Professional Liability Insurance," RT ECP's Jeff Slivka and Joe Reynolds discuss this emerging coverage, related terms and conditions, and the marketplace. Read the complete article by clicking the button below.
Please join us in welcoming our newest employee, Jerome (J.J.) Sawick. An Account Manager working with Joe Reynolds, J.J. brings over 10 years of Account Management experience. Contact J.J. at 609-528-3918 or jerome.sawick@rtspecialty.com.
Employee Spotlight - Daniela Compton
Meet and get to know Daniela Compton, Account Manager in the Environmental and Construction Professional Practice.
Please join us in congratulating Dave Slaugenhoup and Hannah Altomare on their recent promotions.
Dave has been promoted to Vice President. In 2013 Dave joined our team as a Consultant after previously working in Environmental Consulting. Over the past seven years, Dave has been committed to learning the wholesale insurance business, understanding the ECP risks and solutions, and he continues to pursue understanding of the finer details in our realm of insurance and risk management. Dave can be reached at 609.528.3902 or david.slaugenhoup@rtspecialty.com.
Hannah has been promoted to Account Executive. Hannah joined our team two years ago as an Account Manager. In that time, she has proven herself to be an integral part of our team and has assisted in the overall growth of our book of business. Supporting Tim Farrell, Hannah can be reached at 609.528.3901 or hannah.altomare@rtspecialty.com.
Risk Tip - PFAS: The Next Asbestos?
By: Brittany Negron
Be cognizant of emerging contaminants and how they are impacting your clients. As our Broker Partner, we want to keep you up to date on emerging issues and how to respond.
PFAS, or poly- and perfluoroalkyl substances, are emerging contaminants that have become notorious in drinking water across the U.S. PFAS are used in a wide range of products, from non-stick cookware (Teflon), ski wax, food packaging to stain-resistant furniture and firefighting foams.
Due to the ubiquitous nature of PFAS, numerous health and environmental implications have been at the forefront of environmental regulation and debate, leaving property owners, environmental insurance carriers, and consumers on the edge of their seat.
The EPA has issued recommended levels that would be considered safe for consumption at 70 parts per trillion (ppt). Multiple states have reduced their own “safe” levels below 18 ppt, with the most stringent State (New York) being as low as 10 ppt.
As the EPA tightens its grip around addressing these "forever chemicals", the following industries are at the highest risk of being named as potentially responsible parties: Manufacturing, Municipalities, Industrial and textile facilities, Airports, Military bases (including surrounding properties).
Additionally, claims are targeting waste haulers, waste site operators, landfill operators, suppliers, dstributors, fire training areas/schools, Superfund sites, petroleum and refining sites, downstream manufacturers whose products incorporate PFAS into their products.
Fortunately, the marketplace is responding to these conditions with policy forms that are evolving to protect the insureds of closed sites, many of whom have even received No Further Action (NFA) letters. This includes re-opener liability coverage for locations that are being required to re-test by State environmental agencies for potential PFAS groundwater and soil contamination. However, with the EPA and states requiring further investigations of PFAS and claims clearly rising beyond the horizon, it has been our observation that may environmental insurance carriers are responding by adding PFAS exclusions on quotes for properties that are suspected of using PFAS or might have been exposed to the PFAS from neighboring properties. It appears that in circumstances where proper satisfactory sampling has occurred, there is a potential to secure coverage on the Pollution Legal Liability (PLL) policy for PFAS.
