RSA Insurance has introduced a new professional indemnity (PI) insurance product tailored for businesses and consultants providing advice on sustainability, net zero, and climate-related strategies.
The product, which RSA says is the first of its kind in the UK, aims to address the specific needs of climate professionals as demand for their services continues to grow.
Professional indemnity insurance is a key type of business cover for organisations offering professional advice or services. It provides protection if a client claims that advice, design, or services were inadequate, caused financial loss, or failed to meet expectations. The policy covers legal costs and expenses as well as any damages or compensation awarded to the client.
RSA says that the increasing emphasis on net zero strategies and sustainability plans by companies, regulators, and shareholders has driven demand for consultants specialising in this area.
The new product is designed to meet the unique risks faced by these professionals, including those in fields such as net zero consulting, ESG (environmental, social, and governance) advising, and sustainability engineering.
According to Verdantix, the net zero consulting market reached $3.5 billion in 2022 and is forecast to exceed $15 billion by 2028. The broader ESG and sustainability consulting market was valued at $11.5 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 27%, surpassing $48 billion by 2028.
Similarly, Marketresearch.biz estimates the climate change consulting market, valued at $2.8 billion in 2023, will reach $7.7 billion by 2033, with a CAGR of 7.7% from 2024.
RSA says that this new PI product builds on existing professional indemnity offerings and includes additional features tailored to the needs of climate-focused consultants, engineers, and businesses supporting the transition to a sustainable economy.
As part of the product offering, RSA said that it is also providing customers with exclusive access to a new section of its Business Support Hub. The hub is an online resource featuring business tools, risk management guides, and legal support.
The new section includes ESG-focused content such as articles, blogs, case studies, and videos covering regulatory, legal, and environmental topics relevant to climate professionals.
Edward Ambrose (pictured above), UK head of professional indemnity at RSA Insurance, emphasised the importance of this cover.
“We’re delighted to launch a genuinely one-of-a-kind proposition, for an underserved section of the market, and play our part in enabling the transition to a low carbon economy,” he said. “We’ve developed a product that understands the demands placed upon climate professionals and offers an unrivalled cover that truly suits their needs.”
Ambrose stated that the company will remain in close contact with brokers and clients to adapt the offering as needed.
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