Fun, cool, helpful stuff for Architects & Engineers

2012 Professional Liability Insurance Survey of Carriers

2012PLcarriersurveyDesign firms go through their Professional Liability insurance renewals annually. Did you know the insurance companies actually get reviewed annually, too?

Check out the 2012 Professional Liability Insurance Survey in the Jan/Feb 2013 issue of Engineering Inc. Magazine.

Then-President of a/e ProNet, Leslie Pancoast of IOA Insurance Services, offered the following insights:

  • One incentive to switch carriers is better risk management services. Her firm might recommend a switch, for instance, if a designer moves into a specialized industry sector, such as condominium design, or if an opportunity exists to lock in a fixed premium for multiple years.
  • But be careful. Pancoast says that firms that switch PLI carriers too frequently can sometimes find it difficult to find a willing insurer, particularly if a firm begins to experience claims or is driven back to the market by higher billings.
  • Residential work continues to generate a lot of claims, and schools and other  public projects are beginning to experience claims increases.
  • Best practices for PLI coverage continue to include good communication and proper documentation.

Read the rest of the article to learn the status of the insurance industry.