RT Specialty’s Environmental and Construction Professional Practice (RT ECP) recently surveyed the book of business for its Owner’s Protective Professional Indemnity (OPPI) policies.
The review found that the average limit for owners operating with construction values up to $500 million across most industries was about $10 million and heightened to about $20 million for owners in the commercial office/rental space.
Hamilton, New Jersey (August 9, 2022) – RT Specialty’s Environmental and Construction Professional Practice (RT ECP) recently surveyed the book of business of its Owner’s Protective Professional Indemnity (OPPI) policyholders to provide agents and brokers with a comparative analysis of the limits of liability purchased by construction property owners and developers. This analysis revealed an average limit of about $10 million for owners operating with construction values up to $500 million across most industries and a high of about $20 million for owners in the commercial office/rental space.
“OPPI policies are increasingly growing in popularity as less expensive alternatives for insuring against catastrophic design errors,” says Jeff Slivka, president of RT ECP. “As a result, our OPPI book of business, which represents a wide range of industrial, institutional, habitational, and commercial construction sectors, has increased by about 30% over the past year alone.”
OPPI policies are an excess coverage designed to help protect project owners and developers from the errors, omissions and professional service damages committed by architects and engineers, design/builders, construction managers, subcontractors and related entities. Another advantage is their cost-effectiveness in a market where the pricing for Architects and Engineers (A&E) and Project Specific Professional Liability (PSPL) policies is becoming increasingly tighter.
“While our analysis ranges across numerous sectors, it also revealed that the limits of liability for this policy form may still be lower than what a particular insured might need,” adds Slivka. “This is especially true when a single error could cost tens or even hundreds of millions to rectify, the litigation and/or claims process can drag on for years, and exceptionally high jury awards are becoming the norm. Our goal is to provide our clients with the information and expertise needed to create the competitive risk management solutions.”
For more information on this analysis or RT ECP, please visit https://rtspecialty.com/product/environmental-construction-professional-liability/ or 609-298-3516.
About RT Environmental & Construction Professional
RT Environmental and Construction Professional (RT ECP) is a part of the RT Specialty division of RSG Specialty, LLC, a Delaware limited liability company based in Illinois. RSG Specialty, LLC, is a subsidiary of Ryan Specialty, LLC. RT ECP provides wholesale insurance brokerage and other services to agents and brokers. RT ECP does not solicit insurance from the public. Some products may only be available in certain states, and some products may only be available from surplus lines insurers. In California: RSG Specialty Insurance Services, LLC (License # 0G97516). © 2022 Ryan Specialty, LLC