Engineering Inc. - January/February 2015 - (Page 26)

mooDboARD/Getty ImAGes Cosgrove advises shopping around for PLI every three years, noting the market is "typically not going to change in 12 months" as long as economic conditions remain steady. It is not usually a good idea to chase the lowest premium year after year, says Connelly, who adds, "It's extremely important to develop a relationship with your carrier, just like developing relationships with your clients. You need them to stand behind you." Popular Projects Some carriers report an increase in design-build projRabasca says he sees too many clients Across the board, insurects. Farrar says these projects asking designers for notarized "meets ance brokers say risk manaccount for 10 percent to 20 and exceeds" statements-evidence they agement services top the percent of projects for small may be looking to insurance as a funding reasons they advise clients to medium-sized A/E firms mechanism down the road. to change carriers. Webinars and 30 percent to 40 percent Some carriers have voiced concerns are popular and not all carof projects for the larger about prime consultants taking on too riers offer them. Cosgrove design firms. Claims on much "vicarious liability"-that is, agreesays PLAN visits client design-build are less frequent ing to essentially cover subconsultants offices to provide training but tend to be more severe. that don't have PLI or have reached or about how to better control Rogers says he wor"Be sure to exceeded their policy limit. budgets and manage schedries about the prospect of document what cost caps on design-build Going forward, "the construction ules, contracts and claims. you're going industry is facing substantial challenges, Some carriers provide preprojects. "When that gets such as the difficulty finding skilled work- mium credits for continuing to change in exceeded, for whatever reaers like project managers, estimators and education programs. your firm so the son, there is often an allegain-house engineers," says Rabasca. Even Another reason for firms tion that the designers are situation does with a good design, "the level of skill is not to consider changing PLI at least partially at fault," not come up always there in the construction industry carriers is to take advantage he says. to take those designs and build accordof special policy features, The number of Public again." ingly," he says. Designers such as spePrivate Partnerships (P3s), Jeff toDD are also having a harder cific endorsewhile still small, is growing, InsuRAnce mAnAGement time attracting young talent. ments that says Farrar, who adds that consultAnts, Inc. The lack of skilled profesbroaden the P3s "may become a comsionals, coupled with rising coverage and make it more mon delivery system for constructing large construction prices, could attractive, says Todd. infrastructure projects." have an impact on the PLI If your firm does decide Todd says he sees design firms starting market in the months and to make a change, it's to offer services "outside the traditional years ahead. important to work quickly A/E box," such as starting construction to establish communicacompanies or launching Building InforServices Offered tion with a new carrier's risk mation Management studios. Innovations "A lot of money management and claims When choosing an insurare important for fueling growth, but is out there ance carrier, price is always teams, explains Sandridge. Todd urges firms to "call your broker and important. But other con"Firms need to learn the discuss it" before embarking down a new looking for a siderations, such as risk resources of their new carpath. I place to go." management resources and rier-who to call-and JAmes messmoRe professional education, can establish a rapport prior to Maureen Conley is a business and hAnson pRofessIonAl be more valuable in the long the first problem surfacing," technology writer based outside Washington, seRVIces run, says Farrar. he says. D.C. 26 ENGINEERING INC. jaNuaRy / fEbuRaRy 2015

Table of Contents for the Digital Edition of Engineering Inc. - January/February 2015

Engineering Inc. - January/February 2015
Contents
From Acec to You
Legislative Action
Market Watch
The Business Case for Diversity
Closing the Gender Gap
Market Stability Keeping Pli Prices Low
2015 Legislative Scorecard
Made to Market
2014 Fall Conference Highlights
2015 Annual Convention Preview
Risk Management
Business Insights
Members in the News
Mergers and Acquisitions

Engineering Inc. - January/February 2015