The third quarter is in full swing, summer is here, and we are discussing 10/1 renewals already – yikes! Hopefully everyone will have some time for a little rest and relaxation before the hustle and bustle of fall gets here. As we look to that time, we are preparing for our fall conference season. Our team will attend the WSIA Annual Marketplace from September 17 to 20 in San Diego and the IRMI Construction Risk Conference from November 12 to 15 in Orlando. We hope to see you at these events!
Before we wish summer away, please take a moment to read this latest issue of the Standard where we highlight RT’s US Casualty Insurance Review. In this document, our Casualty colleagues delve into the nuances of this complex marketplace. In addition, this issue highlights insurance coverages for your transportation clients. With train derailments frequently making headlines, we thought it important to highlight coverages that may be available not only for your rail clients but also for your trucking clients as trucking accidents tend to be even more frequent and deadlier. Check it out and reach out to any of our team members for more information.
I hope you enjoy these articles and the others in this newsletter. Have a great summer!
RT's US Casualty Insurance Review
RT Specialty's Casualty Practice recently released its annual US Casualty Insurance Review. The review take a deep dive into the casualty market, and reinsurance as well as spotlighting Primary/Excess Auto Needs and Environmental, Social and Governance (ESG) as it relates the casualty sector. Click below to read the full document.
The RT ECP team spent the day in New York City on June 14th. We had a wonderful day including lunch, Wicked on Broadway, and a wonderful Italian dinner at Carmine's. Everyone had a fantastic time and we send a special thank you to all of our agents, brokers, and carriers for allowing us to enjoy the day.
Reporting CPrL Claims and Achieving Successful Outcomes
Understanding your client's Contractor's Professional Liability (CPrL) Policy and the importance of timely reporting is critical in the event of a potential claim. In his latest IRMI Expert Commentary titled "Reporting CPrL Claims and Achieving Successful Outcomes," Jeff Slivka discusses this important topic. In the article, Jeff talks about:
Coverage parts in a typical CPrL policy;
Organizational reporting structures;
Identifying circumstances that "could arise to claim status;"
Identifying the actual claim;
When to report the claim;
What to include in the notice of claims; and
Special considerations for Protective Indemnity Claims.
Our extended RT ECP family is growing. Tim Prosser recently welcomed his first child, Jane Imogen Prosser, born May 11th. And, Daniela Compton welcomed her third child, Eric David Compton, born May 28th. Potential RT interns, class of 2045?
Jane Imogen Prosser
Eric David Compton
Risk Tip - Addressing Professional Liability Insurance Requirements in Construction Contracts
By: Joe Reynolds
More and more owners are requiring professional liability insurance as a key insurance requirement for construction contracts and often at higher limits than in the past. This trend is being driven by an increase in design-build project delivery methods and losses that include economic damages (typically not covered under the CGL policy).
There are a few approaches to address these requirements:
Push back. If a contractor is not involved in design, product specifications, value engineering or any form of construction management, they can consider pushing back to remove the requirement or reducing the limits. General contractors may have a difficult time with this approach, given their construction management activities and oversight of subs.
Practice policies. Contractors can combine their contractors pollution and professional programs into an annually renewable practice program. Generally, the most cost effective approach, a $2m practice program will, in our experience, satisfy most requirements for small contractors. Larger contractors (approaching $100m and greater) can expect requirements of $5m and more.
Project specific policies. Generally, more expensive than practice policies, project specific policies may be secured to address the unique requirements on a single project. The benefit of this program is that while more expensive, some contractors prefer the ability to bill such coverage to a single project budget.
Project specific excess. Need more limits than your current practice program? A contractor can consider purchasing a project-specific excess endorsement, which typically provides dedicated excess limits specific to a project above their current practice policy. Often needing to be maintained for more than one policy year, this is a useful solution for the one off project need. If higher limits are consistently needed, a contractor can consider increasing practice limits for convenience and efficiency.
Did You Know?
Understanding Pollution Coverage for Transportation Clients
With the train derailment and toxic spill in Palestine, Ohio, it’s no secret that these accidents get a great deal of media attention. The environmental risks posed by train
derailments is huge and can cost an owner significantly with regards to clean up, bodily injury, medical monitoring, etc. However, accidents involving other modes of transportation, particularly trucking, are more frequent and even deadlier according to an article written by Michael F. Gorman, Professor of Business Analytics and Operations Management at the University of Dayton. In either case, it is important for transportation companies to understand their insurance coverages in the event of a hazardous spill, leak, or other pollution incident.
Standard Commercial Auto policies typically exclude coverage for pollution events. However, there are several solutions available for insuring over the road pollution exposures, whether it be a Transportation Pollution Liability (TPL) Policy, adding a CA9948 ISO Endorsement or an MCS-90 to the Auto Policy. Understanding the way the policies and/or endorsements respond in the event of a loss is critical.
MCS-90
CA9948
TPL Policy
An endorsement to the Commercial Automobile policy, the MCS-90 provides proof of financial responsibility that can be a beneficial supplement on auto policies.
Typically, form language requires insureds to reimburse the carrier for any payments made where insurance does not apply.
ISO similar broadened transportation endorsement that can be added to certain commercial auto policies.
Typically does not contain the same language that is usually found in MCS-90 around reimbursement to carrier for any payments where insurance does not apply.
Typically, the carrier does not seek reimbursement from the insured following a loss.
Typically responds to claims when the insured becomes legally liable for medical monitoring and clean up associated with a pollution incident caused during transportation.
Typically, does not provide coverage for loading and/or unloading.
Adding transportation to an existing pollution policy or purchasing a separate TPL Policy can serve as a supplement to existing auto coverage to help address pollution liability or as a potential solution to contractual pollution liability insurance requirements.
The Transportation Endorsement or TPL Policy are typically broader as they may provide coverage for both first party vehicles (owned) and third-party vehicles (hired) in addition to loading and unloading as well as the additional available coverages as listed below.
A TPL Policy can include the following coverages:
First-party on-site cleanup for pollution of the covered location (storage and vehicle maintenance yards/rail spurs and rail sidings)
Third-party liability for bodily injury and property damage
Transportation pollution coverage (sudden and gradual) addressing contingent exposures as well as Insured’s vehicles
Loading and unloading
Pre-existing/legacy and new pollution conditions
Defense expense available in addition to the policy limits.
Contact your RT ECP Consultant to discuss potential insurance solutions for your transportation clients. Don’t allow them to face a pollution incident without analyzing their coverage.
