Ryan Transactional Risk (RTR) has introduced a new insurance product called Ryan Transactional Risk Enviro (RTR Enviro), designed to cover cost overruns related to environmental remediation in various business transactions. The insurance solution is particularly relevant for corporate mergers and acquisitions, divestitures, and real estate development projects where known environmental contamination exists.
Key Features of RTR Enviro
The RTR Enviro insurance product utilizes a remediation excess policy form backed by a defined-scope agreement. This structure allows the coverage to kick in when actual remediation expenses exceed the anticipated costs, thereby transferring the financial risk associated with environmental cleanups to the insurer. The product is available to both national and regional brokers and agencies across the United States.
Background and Market Context
Environmental cost cap insurance was a common feature in the US market until the late 2000s. However, due to underwriting losses and claims volatility, many insurance carriers withdrew from this space. In recent years, there has been a resurgence of interest in this type of coverage, driven by the growing importance of environmental liabilities in transaction due diligence. Insurers are now returning to the market with more stringent terms, narrower coverage scopes, and closer monitoring of project execution.
Applications and Benefits
Projects involving legacy contamination, the redevelopment of industrial or brownfield sites, or compliance with regulatory cleanup orders are among the typical use cases for RTR Enviro. This insurance coverage can help buyers, sellers, and developers cap their financial exposure to cleanup liabilities, which is often a critical concern during deal negotiations or permitting processes.
Expert Team and Advisory Support
The underwriting team for RTR Enviro includes industry experts Cole Russo, Roland Costanzo, and Al Nesheiwat, who bring specialized knowledge in environmental risk and insurance product structuring. Howden Capital Markets & Advisory served as the exclusive financial advisor for the launch, while Willkie Farr & Gallagher LLP provided legal and regulatory counsel.
“Central to Ryan Transactional Risk’s belief in innovation, Ryan Transactional Risk Enviro is representative of RTR’s steadfast commitment to delivering transformative products to our valued clients,” said Rich Stansfield, CEO of Ryan Transactional Risk. Cole Russo, director of RTR Enviro, added: “Ryan Transactional Risk Enviro is the leader in providing environmental remediation cost overrun insurance. We are bringing back a new and improved version of Environmental ‘Cost Cap’ insurance that has not been in the market for over 15 years.”
