Engineering Inc. - July/August 2009 - (Page 21)

The Good, The Bad and The Ugly Competition keeps premiums low, but economic downturn fuels surge in claims as firm satisfaction plummets By Maureen Conley 2009 ACEC Professional Liability Insurance Survey Results A s the economic downturn continues to jolt engineering firms, the professional liability insurance market is coping with its own brand of turbulence. One particularly disturbing statistic: The number of firms making payments on claims perceived as “frivolous” has more than doubled, from 19 percent in 2007 to 45 percent this year. These numbers, from ACEC’s 2009 Professional Liability Insurance (PLI) Survey of Member Firms, are just one indication of how a rocky financial landscape has forced many firms to adopt more prudent spending practices. The survey results, based on several hundred responses from Member Firms, also indicate that firms continue to benefit from increased competition among PLI carriers. Chuck Kopplin, principal at Graef-USA, Inc., and a member of ACEC’s Risk Management Committee, who helped oversee the survey, says that despite the tough economy, the market’s capacity to serve engineering firms is keeping premiums low across the board—a potential bright spot for companies struggling to weather a tough economic marketplace. JULY / AUGUST 2009 ENGINEERING INC. 21

Table of Contents for the Digital Edition of Engineering Inc. - July/August 2009

Engineering Inc. - July/August 2009
Table of Contents
From ACEC to You
News and Notes
Market Watch
Legislative Action
Cover Story: Sen. Barbara Boxer (D-Calif.)
Holding Court
Guest Column
2009 ACEC Professional Liability Insurance Survey
2009-2010 Executive Committee
2009 Fall Conference Primer
Members in the News
One On One

Engineering Inc. - July/August 2009