Back to the future! That’s what it feels like right now and you have to be excited about that! Many businesses are open or are opening, people are moving back to the office and the industry associations or groups are holding in-person events. After all, this is still a relationship business and face-to-face interaction offers great value. It has been a busy fourth quarter here at RT ECP. Our team attended the IRMI Construction Risk Conference and WSIA, both in person. It was great to reconnect with old friends and meet some new ones without a computer screen in between us.
But before we kick 2021 out the door, some really cool things happened this year. Denmark beat Sweden for a second straight men’s world title in handball, Halloween XXV was released (Mike has to be like 72 now – am I right?), Kim and Kanye went Kaput, and I began wearing pants again since my time in front of the Zoom screen will now be limited! Just trying to keep it light because I’m tired of talking about all the other serious stuff.
Speaking of serious stuff, in this issue of The Standard, we highlight our recently introduced and exclusive Infrastructure Pollution Policy developed with an AM Best A XV rated environmental insurance carrier. This form, created in response to the recently passed $1T Infrastructure Bill, is designed to protect all stakeholders from the catastrophic environmental risks related to large infrastructure projects. I invite you to read on to learn more about how this new product can address potential environmental exposures as your insureds begin to take on these infrastructure projects. In addition, if you missed it, please view the recording of our recent webinar, “Infrastructure Pollution Liability Risk – Are you Ready?", presented by John Heft.
Also, in this issue, we present our 2022 Market Update, our annual recap of the environmental and construction-related professional liability insurance industry with our team’s thoughts on the state of the marketplace and trends that we see for the coming year. If you want to schedule a webinar specific to the Market Update, please contact any one of us!
I hope you enjoy this issue of The Standard. I wish you all a wonderful holiday season and a very Happy New Year! I look forward to seeing everyone soon.
Jeff
Happy Holidays From Our RT ECP Family to Yours
IRMI Recap
Wow! It was great to be back in person at the IRMI Construction Risk Conference held in early November in San Diego. Our seven team members in attendance met with numerous brokers and carriers throughout the week and they all had one thing to say - it was wonderful to see so many people that we had not seen in two years!
Our team truly enjoyed the educational sessions, seeing old friends and meeting new ones. As always, it was a successful week all around.
We look forward to seeing you next year!
Introducing RT ECP's Exclusive Infrastructure Pollution Program
RT ECP recently introduced an exclusive, competitive solution designed to protect all stakeholders from the catastrophic environmental risks related to hard infrastructure projects (roads / bridges / airports / rail / ports). This Infrastructure Pollution Program (IPP), offered by an AM Best A XV Rated carrier, is offered to to the Construction / Developer industry sectors in response to the historic $1T Infrastructure Bill, which passed Congress this Fall! Coverage is provided with limits up to $25M each incident / $25M aggregate (higher limits available where required by contract) and policy terms up to 13 years including completed operations. Key coverages include full sudden and gradual pollution coverage, third party bodily injury, property damage (including natural resource damages), emergency response costs and defense expense. We look forward to assisting these industries via the deployment of this product as a tool designed to meet contractual liability requirements. Click here for more information on our IPP or contact your RT ECP consultant.
Help! My Legal Fees Have Maxed Out My Insurance
“Help! My legal fees exhausted the limits on my insurance policy. What can I do now?” This is a question that comes up often. In this article recently published in Property Casualty 360, RT ECP's Drew Rothman, along with Steven Bardsley of Bardsley Benedict + Cholden, LLP, discusses this topic and the importance of policy language with regards to defense costs and the impact on policy limits. Read more to learn steps that can be taken to avoid potentially costly mistakes.
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 2022 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 2022 Market Update reviews the strategies needed to overcome challenges and protect against the risks that can potentially financially cripple businesses.
Risk Tip - Automatic Extended Reporting Period By: Hilton Jones
We have seen a growing trend over the past few years where contractors many times report a professional liability claim that was made during the previous policy period but did not get reported to the carrier until the next policy term. This can create a potential deficiency in coverage for the contractor, who oftentimes did not immediately report the claim
for several reasons. These reasons can range from lack of escalation from the project manager to confusion on what constitutes a professional claim compared to a faulty workmanship or general liability claim to just the timing of when the policy renewed. This Claims Reporting Guideline can help alleviate the first two issues with professional liability claims. It’s this last reason we want to highlight and provide some insight on how to ensure that if a claim is reported just after the policy renews with the same carrier there is some continuity of coverage.
Virally, all the contractor’s professional liability policies vary widely when it comes to how they handle the reporting requirements once the policy has either ended by non-renewal, replacement by another carrier or renewed with that same carrier for another year. Some do not provide any additional time for reporting a claim after the policy term has ended and many provide some timeframe of 60 days, 90 days or even longer after policy expiration to report a claim. Many carriers are amenable to lengthening this provision if the contractor renews with the incumbent. Negotiating this key provision with the carrier can be the difference between a profitable project or unprofitable project based on the claim coverage.
Did You Know?
Did you know that RT ECP offers an In-House Quoting Panel (“Panel”) to allow qualifying contractors with up to $100 million in annual revenues to access quality coverage usually available to larger construction firms at a more affordable cost. The panel consists of six, AM Best, A-rated insurance carriers for whom RT ECP can provide bindable quotes for Contractor's Professional Liability, Contractor's Pollution Liability and Faulty Workmanship. For those that qualify, quotes can be provided usually within 24 hours with the quality proposal and coverage analysis you expect of RT ECP. Premiums start as low as $1,600 and are determined based on limit, coverage type and the applicant’s risk characteristics. Contact an RT ECP team member to learn more!
The description of any programs described herein is only a summary of available coverages. Actual policy language will dictate the scope of coverage in the event of a claim. Agents should read the full policy form and any applicable endorsements for full terms and conditions and should encourage their policyholders to do the same.
