Ryan Transactional Risk (RTR) has introduced a new insurance product called Ryan Transactional Risk Enviro (RTR Enviro), designed to cover the risk of cost overruns associated with environmental remediation in corporate transactions, mergers and acquisitions, divestitures, and real estate development projects where known environmental contamination exists.
The RTR Enviro insurance solution uses a remediation excess policy form backed by a defined-scope agreement. This structure provides coverage when remediation expenses exceed anticipated costs, effectively transferring the financial risk associated with known environmental issues.
According to Rich Stansfield, CEO of Ryan Transactional Risk, “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.” Cole Russo, director of RTR Enviro, added, “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.”
Environmental cost cap insurance was widely used in the US until the late 2000s when underwriting losses and claims volatility led many carriers to withdraw from the market. Recently, there has been renewed interest in this type of coverage, particularly as environmental liabilities become increasingly important in transaction due diligence.
The RTR Enviro insurance is particularly relevant for projects involving legacy contamination, redevelopment of industrial or brownfield sites, or compliance with regulatory cleanup orders. The coverage helps buyers, sellers, and developers limit their financial exposure to cleanup liabilities, which is often a critical concern in deal negotiations or permitting processes.
The underwriting team for RTR Enviro includes Cole Russo, Roland Costanzo, and Al Nesheiwat, who bring specialized expertise 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.
The product is available to both national and regional brokers and agencies across the US, marking a significant development in the insurance industry’s response to environmental cleanup cost uncertainties.
