RSA Insurance, a provider of commercial insurance, has launched a Climate Professionals Professional Indemnity (PI) insurance product.
This is the first offering in the UK specifically designed for companies and consultants advising on sustainability, net zero goals, and climate-related strategies.
PI insurance is essential for businesses and consultants providing expert advice or services.
It offers protection against claims that their advice, designs, or services were inadequate, failed to meet expectations, or caused financial loss. This type of insurance covers legal costs, related expenses, and any damages or compensation awarded to claimants.
With increasing pressure from stakeholders, regulators, and shareholders to implement effective net zero and sustainability plans, the demand for consultants offering specialised guidance in these areas is rising. This has made the need for appropriate insurance coverage more critical than ever.
RSA’s Climate Professionals product caters to a variety of roles, including net zero, ESG, and sustainability consultants, as well as engineers.
It builds on RSA’s market-leading PI product, incorporating tailored features to address the unique needs of professionals driving the shift to a sustainable economy. The product is now available to brokers and their clients through RSA’s Regions business.
Policyholders also gain exclusive access to a dedicated section on RSA’s Business Support Hub. This online resource provides valuable tools for business management, risk mitigation, and legal support.
The new section focuses on ESG content, offering articles, case studies, practical guides, blogs, and videos that cover regulatory, legal, disclosure, and environmental topics relevant to their work.
Edward Ambrose, UK Head of Professional Indemnity at RSA Insurance, commented: “In this increasingly litigious environment professional indemnity cover is vital for companies and consultants providing advisory services. With climate, sustainability and net zero considerations growing in importance to all organisations, we believe there is strong demand and desire for this type of product.
“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. We’ve developed a product that understands the demands placed upon climate professionals and offers an unrivalled cover that truly suits their needs.
“We’re not stopping here, in a profession that is rapidly changing, we’ll maintain contact with brokers and clients to ensure the product stays relevant, continues to meet needs and evolves where necessary.”
According to research from Verdantix, the net zero consulting market reached $3.5 billion in 2022 and is projected to surpass $15 billion by 2028.
Their analysis also indicates that global spending on ESG and sustainability consulting amounted to $11.5 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 27%, exceeding $48 billion by 2028.
Similarly, Marketresearch.biz reports that the climate change consulting market was valued at $2.8 billion in 2023. This market is anticipated to grow at a CAGR of 7.7% between 2024 and 2033, reaching $7.7 billion by the end of the forecast period.
