2013 - Page 2 of 7 - a/e ProNet

Why should Architects & Engineers use a specialist Insurance Broker?

By Lynda

At our fall meeting last month, a panelist asked an important question:

Why is an insurance broker necessary for design professionals? Shouldn’t architects and engineers be able to access insurance companies and purchase Professional Liability policies directly?

Members of a/e ProNet are professional, independent brokers who serve the insurance needs of design professionals. Membership in our association is by invitation only, and members must be experienced and have a minimum number of design professional clients, as well as a minimum amount of premium volume. Our members must also provide their clients with services beyond the sale of a professional liability policy.

In addition to knowing the professional liability marketplace, they negotiate the best product at the best price for their clients. That negotiation happens every year at renewal time, and because our members are independent—not obligated to any one insurance company—they are in the best position to compare and contrast policies. Often, the time and expertise this process requires is underestimated by A/E clients. With a specialist broker, the A/E can rest assured that they have an advocate annually, both in relation to their bottom line and their exposure as a professional in a demanding and risky environment.

Most importantly, though, that advocacy doesn’t end when the renewal has been processed. The rest of the year, our members’ clients can count on their specialist brokers to provide services such as contract review, accredited continuing education, and other risk management services. Continue reading “Why should Architects & Engineers use a specialist Insurance Broker?”

Koning Eizenberg Wins at World Architecture Festival

By Lynda

We’d like to congratulate Santa Monica architecture firm Koning Eizenberg on their recent win at the 2013 World Architecture Festival! They received the prestigious Housing Award for their 28th Street Apartments project in Los Angeles, California.

The World Architecture Festival, held in Singapore earlier this month, gathered over 1,750 architects from around the world to exchange ideas and inspiration for design. This year, only 15 of the 260 shortlisted projects were from the USA, and Koning Eizenberg was the only American firm to receive an award.

Referring to the 28th Street Apartments, the judges noted: “This project demonstrates architecture as an agent for social transformation. The architect was able to knit together historical continuity and something very new, something of high architectural value.”

Koning Eizenberg’s website describes the project this way: “The restoration and expansion of a landmark YMCA built in 1926 restores principal spaces, reconfigures original housing, and innovatively adds replacement units. The design re-establishes this building’s role as an important community focus and brings living quarters in compliance with contemporary standards.” Read more on their website.

It’s so exciting to see our members’ clients set themselves apart on the world stage this way. Well done, Koning Eizenberg!

Shout-Out Credit:

Alicia K. Igram, AAI, VP & Branch Rep
Design & Consulting Liability Specialist
IOA Insurance Services – Aliso Viejo, CA
Email: Alicia.Igram@ioausa.com / Phone: 949-680-1789

Did you hear the one about the architect?

By Lynda

For Monday, a few jokes about our favorite professionals… architects & engineers:

After working with our design staff for months on the renovation of an existing building for our office, we asked ourselves, “How many architects does it take to design an architect’s office?” The answer: too many! — Linda Derivi, AIA

When a surgeon makes a mistake they bury the patient. When an architect makes a mistake all one can do is plant vines. — Tim Stormont

An architect is said to be a man who knows a very little about a great deal and keeps knowing less and less about more and more until he knows practically nothing about everything, whereas, on the other hand, an engineer is a man who knows a great deal about very little and who goes along knowing more and more about less and less until finally he knows practically everything about nothing. A contractor starts out knowing practically everything about everything, but ends up by knowing nothing about anything, due to his association with architects and engineers. — AglaiaDaae

The optimist says the glass is half full. The pessimist says the glass is half empty. The engineer says the glass is twice the size it needs to be. — MukMan

Inspired by a recent post on the AIA California Council blog.

a/e ProNet Holds Annual Meeting in Chicago

By Lynda

Chicago, IL, October 01, 2013 –(PR.com)– This week, a/e ProNet will hold its annual fall meeting at the Embassy Suites Downtown/Lakefront in Chicago. a/e ProNet is a nationwide network of independent insurance brokers specializing in the professional liability needs of architects and engineers.Members from across the country will convene to meet with representatives from several top-tier professional liability insurance companies and discuss changes in the industry, as well as to participate in a number of smaller events.

Over the course of the three-day meeting (October 2—4, 2013), eleven professional liability insurance carriers are scheduled to make presentations: RLI, Travelers, Hanover, AXIS, Catlin, HCC, Liberty, Beazley, Navigators, AllRisk and Victor O. Schinnerer. Each presentation will include information about the insurance company’s products, policy forms and endorsements, claims, risk management offerings, etc.

On Thursday night, a/e ProNet will host a reception for its members and insurance company representatives, as well as members of the Risk Management Committees of NSPE, AIA and ACEC. The reception will be held at The Rookery in Chicago, a space designed by Frank Lloyd Wright.

Established in 1988, a/e ProNet’s member-brokers represent a combined annual professional liability premium volume exceeding $300 million. At this meeting, a/e ProNet will explore the possibility of extending its scope to include Lawyers Professional Liability insurance. To that end, five insurance companies (Beazley, AXIS Capital, Catlin, Travelers and Ironshore) will present on their lawyers’ professional liability insurance program offerings, as well.

Learn more about a/e ProNet

a/e ProNet offers a wide range of Risk Management resources to all design professionals via the a/e ProNet website including: Practice Notes, Guest Essays, ProNetwork News, Contract Concerns, Typical Coverages and Frequently Asked Questions. For relevant industry news and risk management information, you can also follow The ProNet Blog and/or follow a/e ProNet on Twitter.

Airbnb is a Trip for Architecture Lovers

By Lynda

Kubuswoningen in Rotterdam, Netherlands.

The idea was simple: Give people the opportunity to rent private residences around the world at a nightly rate. Wouldn’t travelers jump at the chance to stay someplace cozy, someplace with a kitchen, someplace, perhaps, cheaper than a hotel would be in the same city?

Start-up success story Airbnb, founded in 2008, capitalized on this market and proved every one of those assumptions absolutely correct. They also uncovered a previously unanticipated perk of their private-owner-to-private-traveler model: It can be a design-lover’s dream!

Architectural Digest posted on this recently, pointing out that the Airbnb “fairy tale has an especially happy ending for design aficionados. At the same time that the company’s founders… have delivered a radical jolt to the travel industry, they have also unlocked a previously inaccessible world of inspiration to architecture buffs around the globe.”

The spectrum of home-types available for rent on the Airbnb site stretches farther than you’d expect, from yurts to Frank Lloyd Wright-designed homes to igloos to penthouse apartments. This means anyone with an open weekend and the desire to immerse himself in a spectacularly designed home can do it for a price.

Check out a slideshow of Airbnb’s most drool-worthy spaces for rent around the world. Happy Trails!

Leddy Maytum Stacy Architects No. 1 in Sustainable Design

By Lynda

a/e ProNet client Leddy Maytum Stacy Architects of San Francisco has been named to Architect Magazine’s Architect 50 again, and this time they’ve received a top honor!

Earlier this year, we blogged one of LMSA’s award-winning sustainable projects, the Merritt Crossing Senior Apartments in Oakland, California.

Find out more about the Architect 50 at Architect Magazine’s website, including the Top 50 Business, Top 50 Design, and Top 50 Sustainability.

Congratulations, LMSA!

Shout-Out Credit:

Leslie Pancoast, CIC, RPLU
Managing Partner
IOA Insurance Services – Pleasanton, CA
Email: Leslie.Pancoast@ioausa.com / Phone: 925-416-7862

Insurance 101: The Things You Always Wanted to Know About Liability Coverage But Were Afraid to Ask

By Lynda

This issue of ProNetwork News is meant to serve as a basic reference guide to the liability insurance coverages typically purchased by design firms.

Let’s start with a key definition.

CLAIMS-MADE vs. OCCURRENCE

Most liability policies are written on an Occurrence policy form. Coverage is triggered on the date of the “occurrence” (defined as an accident, including continuous or repeated exposure to substantially the same general harmful conditions, causing damage). A claim asserted against the insured may be brought well after the occurrence.

In contrast, professional liability claims are often brought many years after an alleged act, error or omission. Insurance companies had to evaluate their exposures and better determine the premium necessary to cover such risk, so the Claims-Made policy form was created. The coverage trigger is the date the claim is made, and coverage applies only to alleged wrongful acts that happened after the retroactive date of your policy. Once the policy is canceled or not renewed, all coverage will cease.

Today, virtually all professional liability policies are provided on Claims-Made forms. In order to establish coverage, three conditions must be met:

a policy must be in place at the time a claim is made
the “retroactive” or “prior acts” date on the policy must be dated at least as far back as the services giving rise to the claim were provided
notice must be provided to the insurer within the policy term or during a specified grace period

The advice of your insurance advisor is essential when reviewing Claims-Made policies with respect to mergers, acquisitions, splits and retirement.

This has been an excerpt of the May 2013 issue of ProNetwork News. The newsletter goes on to deal with all types of liability coverage, including Professional Liability Insurance, Commercial General Liability Insurance, Owners and Contractors Protective Liability Insurance, Workers’ Compensation and Employers Liability Insurance, Umbrella Liability Insurance, Employment Practices Liability Insurance, Directors and Officers Liability Insurance, and many more! Download the full PDF version of the newsletter here. Continue reading “Insurance 101: The Things You Always Wanted to Know About Liability Coverage But Were Afraid to Ask”

Insurance 101: General Liability, Commercial Property & the Business Owners Package Policy

By Lynda

Most architects and engineers are required to have General Liability and Business Property insurance coverage. The former shows up in most design contracts, while the latter is an essential part of a design firm’s office lease agreement.

Needless to say, we get several common questions regarding these coverages:

What is General Liability coverage? What is Business Property coverage? What’s the difference between these coverages/policies and a Business Owners Package (BOP) Policy?

In an effort to demystify some of the concepts and to provide a quick reference a/e ProNet gathered some of its finest insurance minds and put together this basic manual: Insurance 101 for Design Professionals. This is not intended to be an exhaustive source of information but rather a primer designed to answer basic questions and to put the reader on the right track if more information is needed. a/e ProNet strongly recommends that the reader seek advice from an agent or broker specialist who is best equipped to understand the exposures to loss of each individual design firm.

The following is an excerpt from our Insurance 101 page, specifically defining General Liability, Business Property, and Business Owners Package (BOP). Access the full set of policy and coverage terms on our website.

COMMERCIAL PACKAGE AND BUSINESS OWNER PACKAGE POLICIES

Insurance companies will combine frequently requested coverages under one economical package known as Commercial Package Policies or Business Owners Policies (BOP). One policy is designed to include among other coverages:

General Liability
Commercial Property
Non-Owned/Hired Automobile
Valuable Papers and Records
Business Interruption/Business Income Equipment Breakdown
Accounts Receivable

BOPs tend to be prepackaged policies available to smaller firms with little flexibility (other than limits) on available coverages. Commercial Package policies are offered to larger firms and provide a wide range of coverage options. Insurance companies that offer these policies to design professionals may require the insured to maintain professional liability insurance as a prerequisite to obtaining a package policy. Continue reading “Insurance 101: General Liability, Commercial Property & the Business Owners Package Policy”

Insurance Academy: The Ins & Outs of Professional Liability Insurance

By Lynda

You’re invited! Prominent A&E Professional Liability insurance company Beazley will present a risk management webinar for design professionals on September 4, 2013, to explain the basics of professional liability insurance:

How familiar are you with your professional liability insurance policy? If you are not sure what the policy covers or have never had the opportunity to study the policy, this session is for you. In this webinar, we shall consider professional liability insurance from three perspectives: underwriting; claims management; and risk management. We will discuss how the policy works and examine key exclusions of the policy. We will also look at potential coverage issues from a claims and contractual standpoint.

Best of all, Beazley will provide ONE connection free of charge to each participating firm or broker. Read on for more information about Beazley, the webinar, and the possibility of continuing education credits for architects and engineers.

Beazley Risk Management Webinar

REGISTER HERE

Presented by:
Daniel S. Cho, Esq. of Beazley Group
Steve Stephanides, RPLU of Beazley Group; and
Colleen M. Palmer, Esq. of Beazley Group

What You Can Expect:

Please gather all of your professional staff and join us for this valuable 90-minute seminar where you and your staff will have an opportunity to:

Learn about professional liability insurance from an underwriting, claims management, and risk management perspective;
Discuss important coverage features and critical exclusions contained in the policy;
Explore claims and contractual scenarios that may implicate policy exclusions;
Ask questions to the presenters; and
Qualify for continuing education (C.E.) credits (as applicable). Continue reading “Insurance Academy: The Ins & Outs of Professional Liability Insurance”