M id A tlantic Real Estate Journal — Owners, Developers & Managers — February 18 - March 17, 2022 — 15C
www.marej.com
O wners , D evelopers & M anagers
RT ECP's annual market update Identifying strategies for overcoming construction industry risks & challenges
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in general lowered its toler- ance for losses, while expand- ing the exclusionary language embedded in most policies. This also accompanied the more intensive scrutiny of the terms and conditions offered to insureds, especially the programs of lower-tiered con- tractors or design/build firms. As for specific product ar - eas, the 2022 Market Up- date discussed the continued growth and stabilized rates of the CPL marketplace despite the impact of COVID-19, which precipitated the inclu- sion of communicable disease
exposures. Insurance speci - fications, asset protection and the awareness of pollu- tion claims were among the strongest buying motivators with mold, bacteria and the emergency response of sud- den & accidental pollution conditions typically leading the way for claims landing in the six- to seven-figure range. Other highlights included the industry’s steady evo- lution from monoline CPL insurance policies to com- bined CPL/Contractor’s Pro- fessional Liability (CPrL) programs that now include
Faulty Workmanship cover- age in a growing number of programs. Additional 2022 Market Update insights high- lighted the: A&E PL space, which is in- creasingly gaining popularity among architectural design firms, engineers, construction management agencies, inte- rior designers, space planners and surveyors for features like the Rectification Expense, which allows insureds to col- lect against professional liabil- ity limits on a first-party basis OPPI marketplace, which grew in prominence through-
out 2021 as a less expen- sive alternative for insuring against the catastrophic er- rors committed during the performance of design and other professional services RED space that is con- tinuing to grow with four insurers now offering stand- alone products and numer- ous other carriers providing the coverage on an ad hoc basis to developers looking to mitigate the risks associated with real estate development projects and rebalance their commercial and residential assets. MAREJ
AMILTON, NJ — RT Specialty’s En- vironmental and
Construction Professional (RT ECP) practice recently released its 2022 Market Update to help agents and brokers nationwide better understand the state of to- day’s commercial construction marketplace and the strate- gies needed to overcome the risks, exposures and liabili- ties impacting this highly- specialized field. Representing the collec- tive knowledge of RT ECP’s industry specialists and representatives from several leading insurers, the 2022 Market Update was devel- oped to provide an insightful look into the “state-of-the- marketplace” surrounding the latest Contractors Pollu- tion Liability (CPL), Pollution Legal Liability (PLL), General Liability/Pollution Legal Li- ability (GL/PLL), General Li- ability/Contractors Pollution Liability/Professional Liabil- ity (GL/CPL/PL), Architects & Engineers Professional Li- ability (A&E PL), Contractors Professional Liability (CPrL), Owners Protective Profession- al Indemnity (OPPI) and Real Estate Developers (RED) Pro- fessional Liability products. “The RT ECP team has dedicated the past 16 years to helping our retail agents and brokers navigate the complex commercial insurance marketplace and develop solu- tions designed to protect their clients from the myriad of con- struction and environmental challenges that confront the industry daily,” said Jeff Sliv- ka , president, RT ECP. “The 14th annual version of this report is just another example of our mission to provide our customers with the in-depth knowledge, responsiveness and support necessary to spec- ify and purchase competitive risk management solutions in today’s marketplace.” In addition to providing updates on rates, capacity, claims, buying motivators and underwriting forecasts, the 2022 Market Update also cites the areas of growth and concern surrounding each product. Driven by an increase in claims activity across most of the coverage platforms as well as the ongo- ing impact of COVID-19, the report noted that the industry
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