Spring is upon us and with that comes March Madness and the craziness of the 4/1 insurance business. The first quarter was a busy but successful one for our RT ECP team as we visited with many of our retail brokers, attended conferences, completed training for two new account administrators and, of course, continued to write new and renewal business across all our environmental and construction professional product lines.
Please take a few minutes to read this issue of The Standard to keep up on what is going on within RT ECP. In this edition we highlight our 2025 Market Update – our annual review of the environmental and construction professional liability marketplace. In addition, we feature our recent announcement of RT ECP’s selection as the preferred wholesale broker for Berkley Design Professional’s elite architects and engineers (A&E) program. Read on in this issue to learn more.
I hope you enjoy this issue of our newsletter. As always, we truly appreciate all the support provided by our clients and hope to see you all when we are out there on the road!
RT ECP Selected as Berkley Design Professional Preferred Wholesaler
RT ECP is excited to announce that we have been selected by Berkley Design Professional (BDP) as their preferred wholesale broker for their elite architects & engineers (A&E) program. This program offers coverage and risk management resources tailored specifically for A&E professionals.
Why Choose BDP's Elite A&E Program?
Coverage Highlights:
Limits of Liability: Up to $10 million
Insuring Agreements: A&E Professional Liability, Contractor's Pollution Liability, Cyber Liability, and Media & Personal Injury Liability
Cyber Security Breach Response Reimbursement up to $250,000
Crisis Management/Public Relations Event coverage up to $30,000
Automatic 90-day coverage for newly acquired entities
Various deductible credits (First Claim, Mediation, Risk Management)
Excess Coverage Options:
Excess over the entire underlying policy
Specific Job Excess
Specific Client Excess
Additional Coverage Options:
$1 Million Project Aggregate Limits
Various deductible and defense options
Dive deeper into the specifics of this program by reviewing our marketing sheet or reach out directly to your RT ECP consultant.
RT ECP Releases 2025 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 2025 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 2025 Market Update reviews the strategies needed to overcome challenges and protect against the risks that can potentially financially cripple businesses.
Welcome to the Team
Please join us in welcoming our newest RT ECP team members.
Risk Tip - Change in Control Events and the Hidden Risks to an Insured
By: Dan Wilhelm
A change in control (CIC) is a change in a company's controlling ownership or controlling management structure. This can happen through a merger, acquisition, internal sale or bankruptcy. A CIC can trigger changes to insurance policies, including coverage termination or reduction.
A CIC can be triggered when a person or entity acquires more than 50% of a company's voting rights or the controlling interest in the company. It can also be triggered by a change in majority of the board of directors. Regardless of how company management control changes, insured’s should refer to their insurance policy to identify the factors causing the change of control for the policy to trigger.
When a triggering event occurs, the policy typically requires the named insured to inform the carrier of the change, provide details of the CIC event and answer any other applicable underwriting questions the carrier may require to maintain current coverage. If it’s a clean change of control, many policies will automatically go into ‘runoff’, allowing for purchase of an optional extended reporting period. Carriers will typically not insure wrongful acts that occur after the triggering event and will only contemplate wrongful acts that predated the CIC.
Alternatively, and depending on the nature of the nature of the CIC, insureds may work with their broker to secure a waiver of the CIC with the carrier, to provide coverage on a going forward basis. This most often occurs when the entity is acquired by a new parent holding company. The current insured typically maintains coverage for their prior and ongoing operations and merely names the new parent as an additional insured for their vicarious liability. Details are critical when negotiating these changes within the policy.
The earlier all parties are made aware of a CIC event, the more effectively everyone can prepare.
Consider these practices to reduce the likelihood of a headache later:
Review the CIC provision ahead of the transaction during the due diligence phase
Ensure the insurance carriers are notified in advanced of triggering events
Confirm the merged entity is insured under the existing policies or there is a plan for going-forward for coverage on the closing date of the CIC.
This material is provided for educational and informational purposes only. It is not intended to be relied upon as legal or professional advice. Every insured’s circumstances will differ, and all coverages are dependent on each individual insured’s unique circumstances as well as applicable policy language. Whether an accident or other loss is covered by insurance is determined by the specific facts of the loss and the terms and conditions of the actual insurance policy or policies involved in the claim. References to typical terms or provisions of coverage are illustrative and may not apply to a specific situation. Please consult a legal or insurance advisor regarding specific insurance needs.
RT Environmental and Construction Professional, 2465 Kuser Road, Suite 202, Hamilton, NJ 08690, USA
