Engineering Inc - January/February 2018 - 34

Characteristics in the Premium Determination Process
Allied World
Insurance

Aspen Insurance

AXIS
Insurance

Beazley

Berkley Design
Professional

Chubb

Hanover
Insurance Group

Lexington
Insurance
Company/AIG

Liberty
International
Underwriters

Navigators
Management
Company

PUA

RLI

Terra Insurance
Company

TMHCC

Travelers

Victor O. Schinnerer & Company,
Inc.

XL Catlin

(1 is the highest level of influence; 8 is the lowest)

Location of firm

8

7

4

6

4

3

4

7

8

4

7

5

6

7

4

3

7

Location of projects

7

8

8

5

6

5

8

6

7

7

6

7

5

4

7

7

8

Type of practice

4

2

2

2

3

7

2

4

3

3

2

1

4

2

3

2

2

Type of projects

3

4

6

4

5

4

5

5

4

5

3

3

3

1

5

5

3

Annual billings

1

1

1

1

1

1

1

1

1

1

4

2

2

5

1

1

1

Claims history

2

3

3

3

2

2

3

2

2

2

1

4

1

3

2

4

4

Firm experience

5

5

7

7

7

6

7

3

6

6

5

6

7

6

6

6

6

Other

6

6

5

8

*

*

6

*

5

8

*

*

8

*

*

*

5

* Did not answer
Source: 2017 ACEC/NSPE/AIA/AIA Trust Professional Liability Insurance Survey of Carriers

Corbett attributes that increase to effects of the recession. As
firms let go of more experienced technical management staff,
they see a rise in claims caused by inadequacies in staffing, quality assurance, quality control and design peer reviews of design
documents. That lack of quality control is a
concern within firms, according to Farrar.
"We're seeing an increased number of
technical errors including sizing issues, computational errors, mistakenly approved shop
drawings and undersized support elements,"
says Rabasca.
Documentation and communication issues,
often involving emails and text messages, continue to be problematic.
"People don't really give a lot of thought to
what they're sending out in texts and emails,
and it may be used against them in litigation,"
says Farrar.
While miscommunication, documentation
issues and quality control are driving up claims, there is a new
reason firms should be concerned. Multiple claims against the
designer on the same project are becoming more commonplace,
as attorneys for plaintiffs file to access either per-claim and
aggregate limits or against multiple disciplines on the same project, according to
Messmore. They are also casting wider nets
on road projects in cases involving auto
accidents, as the design engineer's PLI is
another potential source of funds beyond
the auto policy, Messmore adds.
Jim Schwartz, U.S. A/E focus group
leader at Beazley, is seeing more copyright
claims arising from photos posted on a
firm's website without obtaining explicit
rights, which are typically settled for relatively low money because actual damages

cannot be proven. "Don't use a photo unless you know who
took it and whether you have the right to use it," he says.
Deciding whether to settle a claim involves many considerations, including the cost of proceeding to litigation and the
client's interests.
"Evaluating whether to settle a claim begins
with a realistic evaluation of liability and exposure issues," Schwartz says.

The 2017
PLI Survey
of Carriers
found that
11 responding
carriers foresee rate
increases for certain
disciplines and
project types

34

ENGINEERING INC.

JANUARY / FEBRUARY 2018

SELECTING A CARRIER

When it comes to choosing a carrier, Kathy
Blanchard, president of the Professional Liability Agents Network (PLAN) and senior vice
president with BB&T Insurance Services, urges
engineering firms to actively discuss risks and
liabilities on their individual projects, consider
whether the right people and processes are in
place, and select a carrier that can be a partner
over the long term. Corbett adds that firms
should consider financial stability, underwriting experience,
discipline, the experience of the claims-handling staff and risk
management service offerings.
"When choosing PLI, firms should look at what the carrier is

"When choosing PLI, firms should
look at what the carrier is doing
for you, how well they're working
with you and understand your
business and how you operate so
you are protected."
DAN CECCHI | COLLINS ENGINEERS, INC.



Table of Contents for the Digital Edition of Engineering Inc - January/February 2018

Engineering Inc - January/February 2018
Contents
From Acec to You
Market Watch
2018 Legislative Outlook: Infrastructure Up Next
Legislative Action
Flood Protection Analysis
Innovative Restorations
What Happens After the Merge?
A Buyer’s Market With a Hint of Change
Help Desk to Board Room
A Green Machine
Mergers and Acquisitions
Members in the News
Business Insights
Engineering Inc - January/February 2018 - Intro
Engineering Inc - January/February 2018 - Engineering Inc - January/February 2018
Engineering Inc - January/February 2018 - Cover2
Engineering Inc - January/February 2018 - Contents
Engineering Inc - January/February 2018 - 2
Engineering Inc - January/February 2018 - 3
Engineering Inc - January/February 2018 - From Acec to You
Engineering Inc - January/February 2018 - 5
Engineering Inc - January/February 2018 - Market Watch
Engineering Inc - January/February 2018 - 7
Engineering Inc - January/February 2018 - 2018 Legislative Outlook: Infrastructure Up Next
Engineering Inc - January/February 2018 - 9
Engineering Inc - January/February 2018 - 10
Engineering Inc - January/February 2018 - 11
Engineering Inc - January/February 2018 - 12
Engineering Inc - January/February 2018 - 13
Engineering Inc - January/February 2018 - Legislative Action
Engineering Inc - January/February 2018 - 15
Engineering Inc - January/February 2018 - Flood Protection Analysis
Engineering Inc - January/February 2018 - 17
Engineering Inc - January/February 2018 - 18
Engineering Inc - January/February 2018 - 19
Engineering Inc - January/February 2018 - 20
Engineering Inc - January/February 2018 - Innovative Restorations
Engineering Inc - January/February 2018 - 22
Engineering Inc - January/February 2018 - 23
Engineering Inc - January/February 2018 - 24
Engineering Inc - January/February 2018 - 25
Engineering Inc - January/February 2018 - What Happens After the Merge?
Engineering Inc - January/February 2018 - 27
Engineering Inc - January/February 2018 - 28
Engineering Inc - January/February 2018 - 29
Engineering Inc - January/February 2018 - 30
Engineering Inc - January/February 2018 - A Buyer’s Market With a Hint of Change
Engineering Inc - January/February 2018 - 32
Engineering Inc - January/February 2018 - 33
Engineering Inc - January/February 2018 - 34
Engineering Inc - January/February 2018 - 35
Engineering Inc - January/February 2018 - 36
Engineering Inc - January/February 2018 - 37
Engineering Inc - January/February 2018 - Help Desk to Board Room
Engineering Inc - January/February 2018 - 39
Engineering Inc - January/February 2018 - 40
Engineering Inc - January/February 2018 - 41
Engineering Inc - January/February 2018 - A Green Machine
Engineering Inc - January/February 2018 - 43
Engineering Inc - January/February 2018 - 44
Engineering Inc - January/February 2018 - 45
Engineering Inc - January/February 2018 - 46
Engineering Inc - January/February 2018 - 47
Engineering Inc - January/February 2018 - Mergers and Acquisitions
Engineering Inc - January/February 2018 - 49
Engineering Inc - January/February 2018 - Members in the News
Engineering Inc - January/February 2018 - 51
Engineering Inc - January/February 2018 - Business Insights
Engineering Inc - January/February 2018 - Cover3
Engineering Inc - January/February 2018 - Cover4
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