The year 2020 was a big one AND I think most can agree that we’re not sad to say goodbye! Although most of us will want to simply forget it, we never will. Looking towards 2021 - I’m not one who wishes time away - but if I was, I’d be wishing for June of 2021 – for the obvious reasons. Until then, we’ll just stay focused on doing the right thing in our professional and personal lives.
Once again I have to extend a sincere thank you to both our clients and our carriers. We truly appreciate the relationship that we have with you and look forward to strengthening those relationships into 2021 and beyond. As for the ECP staff – I’d be negligent if I didn’t mention the effort put forth by our team. Like everyone else in the world, they have put forth an extraordinary effort to maintain the same level of service, responsiveness and professionalism that makes us who we are. A heart-felt thank you goes out to them as well.
In this issue of the RT ECP Standard, we introduce you to our “Quibinars.” If you haven’t seen them already, these are short but educational videos on a variety of topics surrounding environmental and construction professional liability insurance and risk management. These Q&A format videos respond to questions frequently asked of our team. I invite you the check them out and feel free to share with your team members and/or insureds. Also, you are free to submit additional questions that we’d be happy to answer at rtecp@rtspecialty.com.
This issue also highlights John Heft’s article “Pollution Liability 2020,” recently published in Rough Notes. John discusses how pollution liability carriers responded amidst the COVID-19 pandemic.
I hope you enjoy these and the other articles in this issue.
Finally, as we say goodbye to 2020, I leave you with this question - Why does no one listen to each other on New Year’s day? Answer: Because it goes in one year and out the other!
I wish you all a happy and healthy holiday season. Stay safe!
Happy Holidays
IRMI CRC Recap
RT ECP was once again a proud sponsor of the IRMI Construction Risk Conference (CRC), held virtually in October. Although we missed seeing brokers and carriers in person, we found the conference and educational opportunities to be valuable and successful as always. RT ECP's Joe Reynolds presented "Insurance for Faulty Workmanship: The Next Great Innovation for Contractors," where he discussed this emerging contractor's professional liability coverage, the related policy forms and the scope and drivers behind the coverage. For more information on this topic, contact Joe at 609-528-3910 or joseph.reynolds@rtspecialty.com.
We hope to see you at CRC in November 2021.
Pollution Liability 2020
Just as the pandemic hit in March 2020 and RT ECP released its 2020 Market Update, the construction industry began to take a downturn as many projects were delayed or even canceled. Amidst the COVID-19 pandemic, carriers began to reevaluate their terms, conditions and exclusions offered under their Contractor's Pollution Liability (CPL) and Pollution Legal Liability (PLL) policies. In his article titled "Pollution Liability 2020," recently published in Rough Notes, John Heft discusses the industry trends and challenges that have arisen this year with regards to the CPL and PLL marketplace. Read the complete article by clicking below.
To help our clients better understand some of the finer points of insurance coverage, whether it be Environmental insurance products, Construction Related Professional Liability products or related risk management techniques, RT ECP has created what we have been referring to as "quibinars". These short answers to common questions are provided by our team of specialists to offer the basics surrounding Contractor’s Professional Liability, Site Pollution Liability, Owner’s Protective Professional Indemnity and other products offered by RT ECP. These short but educational videos provide easy access to obtain answers to your frequently asked questions.
We will continue to build this library so we encourage you to send your questions and we’ll respond with a written or video response in a timely manner. Send all questions to rtecp@rtspecialty.com.
Webinar Recordings
Over the years, RT ECP has conducted numerous webinars on various environmental and construction related professional liability topics. We have consolidated the recordings from all of our webinars into a library that is accessible at any time for viewing. We invite you to take a look at what is available and use these recordings as another educational tool to share with your team and/or your insureds. This library will be updated regularly as more webinars are conducted. To the left are links to some of our more recent webinar recordings.
Welcome to the Team
Please join us in welcoming our newest employee, Justin Kochmer. Justin is a recent graduate of Temple University's Insurance and Risk Management program. He joins the RT ECP team as an Account Administrator supporting new business, sales, account management, claims and policy servicing. Justin can be reached at 609-528-3897 or justin.kochmer@ rtspecialty.com.
Lexi Jackson Promoted
Please join us in congratulating Alexandra "Lexi" Jackson on her recent promotion to Account Manager. Lexi joined our team in May of 2019 as an Account Administrator. During that time, she has demonstrated her value to the company and has dedicated herself to learning our business after graduating with a degree in Risk Management and Insurance from the University of Mississippi. Supporting John Heft and Maydelis Torres, Lexi can be reached at 609.528.3914 or alexandra.jackson@ rtspecialty.com.
Hannah Altomare Earns CRIS Designation
Please join us in congratulating Hannah Altomare on recently earning her Construction Risk Specialist (CRIS) designation. Hannah is an Account Executive who joined RT ECP in 2018. During her time with us, she proven to be an essential part of are team as she assists in the overall growth of our team. This designation adds to her expertise and dedication to insurance and risk management. Contact Hannah at 609-528-3901 or hannah.altomare@ rtspecialty.com.
Risk Tip - COIs - Too Little, Too Late?
By: Dave Slaugenhoup
As a prudent means of risk transfer, an insured should consider requiring their down-stream subcontractors to have appropriate insurance coverage and adequate limits of liability. Sounds simple, right?
The verification is typically via a certificate of insurance (COI). But let’s consider the limited amount of information an insured receives within that COI: limit of liability; possibly the carrier; maybe some snippets of information. Let alone it feels like they have to be updated constantly!
And in hindsight, if the insured or their retail agent would have known that the HVAC contractor’s professional liability policy included a residential exclusion or that the demolition contractor’s pollution liability included an asbestos exclusion, the insured may not have engaged that subcontractor on their project. Unfortunately, insureds are oftentimes contractually liable for those damages alleged, or completed by their subcontractors.
Retail agents and brokers can potentially take the following steps:
Request copies of the core insurance policies (and endorsements).
If you can get them, review a currently valued five year loss run.
If you can’t get your hands of either of those, you can consider focusing your time on a stricter, more complete insurance provision in your insured's contract so the subcontractor knows exactly what your insureds are looking for them to provide.
When reviewing your insured's insurance policy, it can be beneficial to pay close attention to the definitions (particularly the definitions of ‘professional services’), any out of the ordinary exclusions, the presence of a limitation of liability provision, first-party reporting provisions, etc. Provisions such as these, in our experience, can potentially make a negative impact when your insured has to make a claim against their policy.
As for those loss runs, you can consider those as a reflection of the subcontractor who will be working on behalf of your insured. If you identify any concerns, you may want to advise your insured to avoid that subcontractor all together and choose the next-best partner.