HAMILTON, N.J.—The 2022 Market Update released by RT Specialty’s Environmental and Construction Professional (RT ECP) Practice aims to help agents and brokers better understand the state of the current commercial construction marketplace and the strategies needed to overcome the risks, exposures and liabilities.
According to a release, the annual update was developed to provide an in depth look into the state-of-the-marketplace surrounding the latest Contractors Pollution Liability (CPL), Pollution Legal Liability (PLL), General Liability/Pollution Legal Liability (GL/PLL), General Liability/Contractors Pollution Liability/Professional Liability (GL/CPL/PL), Architects & Engineers Professional Liability (A&E PL), Contractors Professional Liability (CPrL), Owners Protective Professional Indemnity (OPPI) and Real Estate Developers (RED) Professional Liability products.
It provides updates on rates, capacity, claims, buying motivators and underwriting forecasts and it also cites the areas of growth and concern surrounding each product.
2022 Market Update insights include:
- Driven by an increase in claims activity across most of the coverage platforms as well as the ongoing impact of COVID-19, the report noted the industry in general lowered its tolerance for losses, while expanding 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 contractors or design/build firms.
- The continued growth and stabilized rates of the CPL marketplace despite the impact of COVID-19, which precipitated the inclusion of communicable disease exposures. Insurance specifications, asset protection and the awareness of pollution claims were among the strongest buying motivators with mold, bacteria and the emergency response of sudden and accidental pollution conditions typically leading the way for claims landing in the six- to seven-figure range.
- The industry’s steady evolution from monoline CPL insurance policies to combined CPL/CPrL programs that now include Faulty Workmanship coverage in a growing number of programs.
- A&E PL space, which is increasingly gaining popularity among architectural design firms, engineers, construction management agencies, interior designers, space planners and surveyors for features like the Rectification Expense, which allows insureds to collect against professional liability limits on a first-party basis.
- OPPI marketplace, which grew in prominence throughout 2021 as a less expensive alternative for insuring against the catastrophic errors committed during the performance of design and other professional services.
- RED space is continuing to grow, with four insurers now offering standalone products and numerous 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.
To view the update visit https://rtspecialty.com/wp-content/uploads/2021/10/2022_RT-ECP_Market-Update-Final_102821-1.pdf