Hamilton, NJ, December 10, 2019 --(PR.com
)-- Joseph Reynolds, assistant vice president within RT Specialty’s National Environmental and Construction Professional Liability Practice (RT ECP), recently led the discussion on Real Estate Development (RED) Errors and Omissions Risks at the 39th IRMI Construction Risk Conference held in Seattle, Washington. During the November 12 session, Reynolds, along with Ed Shieffele of Berkley Construction Professional and Audrey Lau of Hiscox, highlighted the blurred responsibilities and liability issues dominating today’s design/build projects and the risk management strategies presently available to owners and developers.
“Wide-ranging challenges can emerge during the operational and service phases of virtually any real estate development project,” says Reynolds. “From pre-design through post-construction, these exposures can result in anything from costly delays and remediation costs to in-house and delegated design errors and omissions claims.
“We dedicated this discussion to exploring the liabilities that can disrupt or derail RED projects and the risk management strategies and insurance placements available to protect against the costs and damages resulting from the typical professional services performed throughout the project cycle.”
In addition to a detailed overview of claims and exposures, each of the panelists also reviewed the coverage terms and options commonly offered through Real Estate Developer E&O policies. This includes serving as a primary coverage for:
-- All manner of professional services that owners and developers are personally or vicariously liable
-- Standard services intrinsic to a RED development including management, coordination and supervision of design and construction, whether performed in-house by the developer or subbed out to design professionals or contractors
-- Sales and property management of both owned and non-owned properties and developments
“Today’s RED E&O policies offer a flexible array of coverage structures,” explains Reynolds. “This includes additional defense limits of liability as well as modest expansions for Cyber Risk and technology service exposures. In some instances, we’ve even negotiated with carriers to provide rectification and protective indemnity coverage as well as expanded pollution terms and conditions not typically available in the real estate E&O space. We can even expand the standard definition of professional services to accommodate non-traditional professional services offered by developers such as golf course management and concierge services.”
“Depending on the risk management philosophy of clients and their operational and service exposures, property owners and developers need to understand the risk transfer vehicles available in today’s marketplace. It’s our job as carriers and intermediaries to help them better recognize their risks and then develop solutions that foresee potential challenges. This includes making sure the client’s services, operations and obligations align directly with policy terms and conditions to cover the liability issues that can directly impact bottom lines or even financially cripple organizations.”
For more information on the 39th IRMI Construction Risk Conference please visit https://www.irmi.com/conferences/construction-risk-conference or contact RT Specialty newday.rtspecialty.com at 609-298-3516.
RT New Day, a division of R-T Specialty, LLC is a specialty resource for agents and brokers, assisting them and their clients find appropriate, high-quality environmental and construction-related professional liability insurance coverages. RT New Day offers agents and brokers single-point access to an ample portfolio of products and services provided by the nation's largest environmental and professional liability insurance providers. In California: R-T Specialty Insurance Services, LLC License #0G97516. For more information please visit newday.rtspecialty.com or call 609-298-3516.