As a real estate developer or a construction or design professional with ownership interests in projects, how do you protect yourself from all of the additional professional exposures that come with the convergence of construction and real estate? Will a design professional or contractors’ professional liability policy cover you for the various additional exposures that come with developing, owning, maintaining, leasing or selling a property? The best way to avoid coverage gaps is to purchase a Real Estate Developers (RED) Errors & Omissions policy. These professional liability products are typically written on an annual basis for the entirety of your real estate exposures or can be written on a project specific basis for single projects.
RED policies cover third-party economic damages, bodily injury, property damage, pollution liability, third party discrimination, and personal advertising injury and defense costs and are designed to cover direct and vicarious exposures related to:
Structured to cover nearly all aspects of the insureds’ professional liability exposures, RED policies are designed to fill the “professional liability gap” found in most general liability policies for real estate firms. Benefits include:
This is an emerging market and capacity is typically limited to more than $50 million on a standard basis. However, markets continue to express an interest in entering this arena to grow market share.
RT Specialty’s National Environmental and Construction Professional Liability Practice can assist in evaluating your insured’s current real estate professional liability program or in developing an optimal solution for your client that may not be available in the standard professional liability marketplace.
For more information on RED E&O, please contact your RT New Day consultant.