It’s time for March Madness!! No, not the NCAA basketball tournament, but the insurance madness that we all experience as we approach the 4/1 date! Unfortunately we also know that we can't go over it, can't go under it, we have to go through it (for fans of We're Going on a Bear Hunt). Though we complain, many us know we wouldn't wish it away. Some of us are primed to take advantage of the opportunity rather than just getting through it. So we are ready to make your life easier around this time of year and help you through those difficult placements, last minute deals or anything else you may need.
Highlights from this issue of the Standard include:
2023 Market Update - Don't miss our annual review of the marketplace including challenges and trends that we see throughout the environmental and construction professional markets.
Preparing for Future Tragedies Before They Happen - Mitch Cohen's article discussing the Surfside Condo Collapse.
Infrastructure Pollution Policy -Feature our exclusive policy form targeting environmental risks for hard infrastructure projects.
Enjoy and Happy Spring!
2023 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.
The 2023 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 2023 Market Update reviews the strategies needed to overcome challenges and protect against the risks that can potentially financially cripple businesses.
EPA Updates PFAS Drinking Water Regulations
On March 14, 2023, the EPA proposed a National Primary Drinking Water Regulation (NPDWR) to establish legally enforceable levels, called Maximum Contaminant Levels (MCLs), for six PFAS in drinking water. The new enforceable levels for PFOA and PFOS are proposed to be 4.0 parts per trillion and the proposed regulation would require public water systems to:
Monitor for these PFAS
Notify the public of the levels of these PFAS
Reduce the levels of these PFAS in drinking water if they exceed the proposed standards.
We have seen many carriers in the environmental insurance marketplace is adding PFAS exclusions for certain classes of business including water and wastewater treatment facilities as well as municipalities, to name a few. We believe the advent of these exclusions has typically been a direct result of the regulatory uncertainty at both the Federal and State levels regarding monitoring requirements. The proposed Federal MCLs are a first step in providing some clarity related to these ubiquitous chemicals and may provide the marketplace a roadmap to potential coverage carve-backs in the future. Only time will tell!
John Heft and Kim Vincent to Speak at IRMI Transportation Risk Conference
John Heft and Kim Vincent are proud to be speaking at the 2023 IRMI Transportation Risk Conference (TRC) to be held June 5–7 in Dallas, TX. Please join John and Kim at their session titled "Insuring Against the Next Environmental Disaster with the Proper Risk Management Solution."
This is a must-attend conference for anyone who manages or insures transportation risks. Check out the agenda, speaker roster and registration information here and reach out to John or Kim to schedule a time to meet during the conference.
Preparing for Future Tragedies Before They Happen
The Surfside Condominium collapse that occurred in Florida in June of 2021 was a catastrophe we hope never to see again. Problems in design and construction can occur long after the initial professional liability coverage has expired, or the original players may even be out of business. In his article titled "Preparing for Future Tragedies Decades Before They Happen, RT ECP's Mitch Cohen discusses these challenges and others that occurred in the Surfside Condominium collapse and the lessons learned in liability. Read the complete article here.
Welcome to the Team!
Please join us in welcoming our newest RT ECP team members.
Congratulations to Kim Vincent on her recent promotion to Consultant. Having joined the RT ECP team nine years ago, Kim has progressed through the ranks to now lead our environmental casualty team. Kim can be reached at 609-528-3905 or by email.
Congratulations to Rachael Neary on her recent promotion to Account Manager. Rachael joined the RT ECP team in Sept-ember of 2021 and has proven to be a fantastic asset to our environ-mental casualty team as well as our retail broker clients. Reach out to Rachael at 609-469-2654 or by email.
Congratulations to Evan Quinn on his recent promotion to Account Manager. Evan joined the RT ECP team in June of 2020 after graduating from Temple Univer-sity's Insurance and Risk Management program. Contact Evan at 609-469-2652 or by email.
Risk Tip - CA9948 Endorsement Offers Broadened Pollution Coverage for Transportation Exposures
By: Kim Vincent
Insurance coverage for pollution exposures related to transportation can be quite complex. What pollution coverage applies in a transportation policy vs. what applies in an commercial auto policy?
The answer is: it all depends and there is typically some overlap. However, a typical commercial auto policy does not offer pollution coverage for a pollution event such as a spill that occurs during hauling.
The CA 9948 Endorsement can be added to supplement existing auto coverage. The CA 9948 Endorsement offers broadened pollution coverage for transportation pollution exposures. It is designed to cover cleanup costs resulting from sudden and accidental pollution that occurs during hauling (this coverage typically does not cover loading and unloading, which is typically covered under the transportation policy). This endorsement, in most instances, offers the benefit of lower deductibles compared to a typical transportation policy. An auto policy with the CA 9948 Endorsement may have deductibles ranging from $1,000 to $3,000, whereas a transportation policy would likely have a $25,000 deductible. In addition, the CA 9948 Broadened Pollution Endorsement typically applies the same as the vehicle coverage, which is a combined single limit on a per incident basis. Whereas a single pollution event on a transportation policy could deplete the limits for the entire policy term.
It can be beneficial to hold both a transportation policy and the CA 9948 Endorsement on a commercial auto policy in the event of a sudden and accidental pollution condition. Contact your RT ECP consultant to learn more and to help you navigate this difficult topic.
Did You Know?
Exclusive Infrastructure Pollution Policy
It has been nearly a year and a half since Congress passed the $1 trillion infrastructure bill and these projects are ramping up all across the country. Did you know that RT ECP has an exclusive, competitive
solution designed to help protect all stakeholders from the catastrophic environmental risks related to infrastructure projects? Our Infrastructure Pollution Program (IPP), offered by several AM Best A Rated or better carriers, may address the typical contract requirements related to these infrastructure projects, including specific pollution liability insurance requirements.
With limits up to $100M each incident / $100M aggregate (higher limits available where required by contract) and policy terms up to 13 years including completed operations, our IPP may respond to these contractual requirements. Key coverages include full sudden and gradual pollution coverage (including clean-up), third party bodily injury, property damage (including natural resource damages), emergency response costs and defense expense. If you have insureds infrastructure projects , contact your RT ECP consultant to discuss how this product may assist.
