Rich Hartman has spent his career working in construction insurance, and he knows well how varied and challenging the job can be. From large design firms to state agencies and major contractors, he deals with different clients every day. As the senior vice president and construction professional liability broking leader at NFP, Hartman has found his niche in professional liability insurance tied to construction projects.
Hartman’s path into this field started early. Influenced by a family member in insurance, he majored in the subject in college. Just six months after graduating, he took a role underwriting insurance for architects and engineers, and he has remained focused on construction-related professional liability ever since.
He explains that professional liability insurance works differently compared to other types of construction coverage. Each key player in a project — design professionals, contractors, and owners — has its own insurance needs and faces unique risks. Right now, the market for this kind of coverage is fairly stable, with steady capacity and rates. New companies are joining, and Hartman expects this trend to continue over the next couple of years.
But in New York, things get trickier. The state’s legal rules, especially the Scaffold Law, make insurance more expensive and harder to get. This law holds contractors and owners fully responsible for serious injuries related to gravity, which has caused insurance claims to rise sharply. The result is higher premiums and less availability of coverage in New York City compared to other places.
To help ease these challenges, Hartman and his team at NFP are encouraging the use of alternative dispute resolution for workers’ compensation claims. This approach has helped speed up recovery times and reduce costs for their clients.
Demand for professional liability insurance has grown beyond architects and engineers. Contractors and project owners are now seeking this coverage more than ever before. This reflects changes in how projects are managed and the growth of large-scale projects like data centers and clean energy facilities.
Another area seeing change is subcontractor default insurance (SDI). Traditionally, it has been aimed at large contractors, but recently, a market has begun offering policies tailored for the middle market. Despite this progress, there are still high barriers in terms of talent and capital.
When it comes to other risks, labor shortages remain a concern, especially for skilled workers on high-tech projects. Hartman sees potential in prefabrication and technology but stresses that human expertise can’t be replaced. On the supply side, contractors have generally improved how they handle disruptions after the COVID-19 pandemic.
Beyond his professional work, Hartman enjoys mentoring young professionals. He finds satisfaction in sharing his knowledge and experiences with the next generation. Balancing a busy career with family life, including six children and three grandchildren, he stays active both physically and mentally.
Despite the hurdles faced by the construction insurance industry, Hartman remains hopeful. He believes the market is adapting, and clients are becoming more knowledgeable. With innovations like broader liability coverage and alternative dispute resolution, positive changes are taking hold.
His advice to those entering the field is clear: as construction projects get more complicated, insurance professionals will have even more value to offer. And that, he says, is unlikely to change anytime soon.