Posted by & filed under BDP Blog.

By Paul Dillon
Senior Vice President, Executive Underwriter
Berkley Design Professional, a Berkley Company

September 10, 2025

In the professional liability market for design firms, the value of an insurance provider extends well beyond price. It lies in thoughtful underwriting, proactive risk management and a claims team that genuinely understands the industry.

At Berkley Design Professional, we’ve worked closely with agents and brokers across the country who serve the unique needs of architects and engineers (A&E). Over time, we’ve listened carefully to what they say makes an insurance provider stand out and what keeps them coming back with new business and renewals.

Based on our brokers’ feedback and ongoing industry insights, here are three qualities that distinguish Berkley Design Professional as a trusted partner in the A&E professional liability insurance marketplace.

1. Creative and Flexible Coverage

A solid policy form is the key to dependable coverage. At Berkley Design Professional, we adopt a flexible and innovative approach to underwriting that meets the real-world needs of A&E firms. For example, we recently issued an enhanced primary policy form with significant updates, including:

  • Definition of insured: Now covers independent contractors
  • Waiver of subrogation: May apply to parties with a written agreement with the insured (excluding their subcontractors or sub-consultants)
  • Extended reporting period: New option to extend reporting up to five years
  • Cannabis coverage: Clearly included in the policy to address an emerging risk

We also clarified our definitions of claim, contractors pollution coverage, professional services and deductible credits, making it easier for agents and brokers and their clients to understand how our policy works and how coverage applies.

For an additional premium, our policies feature several elements that agents, brokers and clients appreciate:

  • Project limits enable firms to allocate specific coverage to individual projects. This helps manage liability, meet client requirements and maintain the overall policy limit.
  • Run-off 3 Year policy providing ongoing protection for work completed before a firm closes or changes ownership, ensuring claims related to past work are still covered.
  • Separate defense limits allocate funds specifically for legal defense, so indemnity coverage isn’t depleted by high legal costs.

Berkley Design Professional also offers admitted follow-form excess policy options, which provide coverage above the primary policy, following the same terms. This is especially beneficial for A&E firms handling complex or high-value projects.

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Posted by & filed under News Releases.

MONTEREY, Calif., September 10, 2025 – Berkley Design Professional, a division of Berkley Alliance Managers, a Berkley Company, specializing in professional liability insurance for architects and engineers, announced that it has been recognized as one of the 2025 Best Places to Work in Insurance by Business Insurance, marking the second consecutive year the business has earned this prestigious honor.

This annual award recognizes insurance businesses that excel at creating outstanding workplaces by emphasizing employee engagement, satisfaction and culture. Only 100 businesses from the industry are chosen based on a comprehensive review of their workplace policies, practices and employee feedback.

“We are incredibly proud to be named a Best Place to Work in Insurance for the second straight year,” said Steve Porcelli, president of Berkley Design Professional. “This recognition truly reflects our people, their passion, entrepreneurial spirit and unwavering dedication to our clients and each other. At Berkley Design Professional, we believe investing in our people fosters a culture of innovation, collaboration and long-term success.”

Berkley Design Professional’s ongoing recognition highlights its commitment to creating a workplace where employees feel valued, empowered and inspired. The business’s entrepreneurial culture encourages individuals to contribute meaningfully and take responsibility for their impact.

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Posted by & filed under Events.

Presented by:
Diane P. Mika, Senior Vice President, Risk Management Officer, Berkley Design Professional
Andrew D. Mendelson, FAIA, Executive Vice President, Chief Risk Management Officer, Berkley Design Professional

Thursday, September 18, 2025
10-11 AM Pacific
12-1 PM Central
1-2 PM Eastern

Approved for 1.0 AIA Learning Units 
1 RCEP Professional Development Hours+

Berkley DP policyholders who participate in this program can qualify for a 15% Risk Management Education credit. Contact your agent for further information*

In today’s rapidly evolving AEC landscape, risk management fundamentals are more critical than ever. This webinar explores how post-pandemic shifts, emerging technologies, and changing client expectations are reshaping professional liability exposure for architects and engineers. Gain actionable insights and tools to protect your firm and enhance risk resilience in the “new normal.”

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Posted by & filed under Published Articles.

These emerging trends are challenging traditional construction risk management.

By Stephanie Thomas | August 14, 2025

As construction practices evolve to meet new environmental, technological and efficiency demands, so too do the associated risks.

Three emerging areas are giving rise to increasingly complex claims scenarios: solar farms, data centers, and modular construction. Each involves unique exposures, legal ambiguities and implications for underwriting and risk management.

Solar farms: Small damages, giant verdicts

As the renewable energy sector continues to grow worldwide, the construction of solar farms across America’s rural areas has triggered an uptick in high-severity pollution runoff claims. Though these claims often involve limited physical damage caused by silt or sediment runoff onto neighboring residential properties and waterways, they increasingly result in multi-million-dollar jury awards.

Solar farm construction involves clearing and grading large sections of land, often in rural communities. This phase of construction can lead to significant erosion and major sediment run-off into waterways and neighboring residential properties if the stormwater controls and drainage basins are inadequate. What might begin as a modest environmental incident can escalate into a highly litigious and emotionally charged dispute.

A landmark example of this trend is the Lumpkin Solar case, in which a Georgia jury awarded $135.5 million, including $125 million in punitive damages, to a couple whose private pond was contaminated by runoff during the construction of a nearby solar farm. The actual cost to remediate the damage was estimated at less than $1 million, but the verdict reflected deeper social dynamics: a strong jury inclination to penalize corporations thought to be infringing on rural livelihoods.

These high-dollar claims are rarely driven by catastrophic physical losses. Rather, they emerge from a mix of social inflation, the rise of third-party litigation funding and a growing public skepticism toward industrial-scale projects in rural settings — all resulting in nuclear jury verdicts, defined as verdicts in excess of $10 million. Plaintiffs’ attorneys have recognized this dynamic and are actively seeking similar cases, which is accelerating both the frequency and severity of these claims.

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Posted by & filed under News Releases.

Monterey, Calif., July 17, 2025 – Berkley Design Professional, a division of Berkley Alliance Managers, a Berkley Company, specializing in professional liability insurance products and services for architects and engineers, has announced Tom Rea as the new executive president.

With nearly 30 years of experience in professional liability underwriting and a strong background in portfolio management, Tom has a proven track record of successfully launching numerous new products and expanding business portfolios for Berkley Alliance Managers and other insurance providers.

Tom’s extensive experience in professional liability underwriting, his exceptional leadership skills, and his creative approach to business will position Berkley Design Professional for growth in the A&E Professional Liability Insurance market,” said Stephen L. Porcelli, president of Berkley Alliance Managers. “We are truly fortunate to have Tom’s leadership, and we are confident he will best serve the interests of our brokers and policyholders.”

Tom joined Berkley Alliance Managers in 2020 to lead Berkley Service Professionals, the company’s miscellaneous professional liability business unit, and he will continue in this role as well. Before joining Berkley, he held various positions in professional liability, including senior vice president, product head, product and portfolio manager, and senior underwriter. He has experience working in both large and small insurance companies, as well as with Managing General Agents that specialize in both admitted and non-admitted professional liability insurance.

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Posted by & filed under BDP Blog.

By Diane Mika
Senior Vice President, Risk Management Officer
Berkley Design Professional, a Berkley Company

June 12, 2025

Signed contracts are recommended for every project. In a perfect world, this would be in the form of a professional services agreement that acknowledges the standard of care and complies with your professional liability insurance coverage. To accomplish this outcome, many design firms incorporate their standard terms and conditions into their proposal documents or use their standard agreements or those written by professional associations such as the AIA or EJCDC.

However, it is not unusual for an architect, engineer, or other design professional to be presented with an owner’s purchase order form (PO) or, for engineering or other design services requested by a contractor (including design-build), with a contractor’s construction subcontract. In general, these forms are not appropriate for design or other professional services and should not be used except for limited scope projects. In that event, there are eight clauses you should add to help reduce risk and properly address professional liability exposure including Standard of Care, Schedule, Disclaimer of Construction Responsibility, Document Ownership and Indemnification, Third-Party Exposure, Limitation of Liability and Waiver of Consequential Damages.

In the example language provided in this document, the term “Consultant” is intended to represent the design professional in contract with the “Client.” You should adapt the language to reflect the defined titles of the parties in your agreement.

1. Standard of Care

Purchase Orders and construction subcontracts are intended for use with product vendors and contractors that operate under a warranty standard—they can guarantee their work product. In contrast, architects and engineers perform design services under a professional Standard of Care (SOC) and carry professional liability insurance (PLI) to cover related errors and/or omissions—perfection is not expected. Therefore, you should establish the SOC as an initial clause in a PO or construction subcontract, with an express disclaimer of warranty and fiduciary relationships.

Standard of Care
[DESIGN FIRM NAME] is a consultant providing professional design services on the Project (“Consultant”). Consultant shall perform its services consistent with the professional skill and care ordinarily provided by consultants practicing in the same or similar locality under the same or similar circumstances (“Standard of Care”). Consultant shall perform its services as expeditiously as is consistent with such professional skill and care and the orderly progress of the Project. Notwithstanding any other representations made elsewhere in this Agreement or in the execution of the Project, this Standard of Care shall not be modified. No warrantees or guarantees are expressed or implied under this Agreement or otherwise in connection with Consultant’s services.

Consultant shall act as an independent contractor at all times during the performance of its services, and no term of this Agreement, either expressed or implied, shall create an agency or fiduciary relationship.

2. Schedule

Your schedule of services should be written in the context of the SOC and a mutually agreeable project schedule subject to revision as the project proceeds—not as a “Time is of the Essence” requirement, which would expose your firm to uninsured strict liability as a performance guarantee.

Project Schedule
Consultant shall provide its services in accordance with the project schedule and schedule for performance of Consultant’s design services, which schedules may be modified periodically with the mutual agreement of Client and Consultant and for factors beyond the control of Consultant. In the event Consultant is hindered, delayed, or prevented from performing its obligations under this Agreement as a result of any cause beyond its reasonable control, including but not limited to delays due to power or data system outages, acts of nature, public health emergencies including but not limited to infectious disease outbreaks and pandemics, governmental orders, or directives, failure of any governmental or other regulatory authority to act in a timely manner, failure of Client to furnish timely information or approve or review Consultant’s services or design documents, delays caused by faulty performance by Client’s contractors or consultants, or other unforeseen conditions, the time for completion of Consultant’s services shall be extended by the period of resulting delay and compensation equitably adjusted. Client agrees that Consultant shall not be responsible for damages, nor shall Consultant be deemed in default of this Agreement due to such delays.

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Posted by & filed under Events.

Managing Evolving Risks of AI in Design and Construction

Presented by:
Diane P. Mika, Senior Vice President, Risk Management Officer, Berkley Design Professional

Wednesday, May 21, 2025
11:15-12:15 PM

Diane Mika, senior vice president and risk management officer, will be speaking at the Society for Design Administration (SDA) EDSymposium25. She will present on “Managing Evolving Risks of AI in Design and Construction”.

More details on the event below.

***

Design and construction technology has continuously evolved, with artificial intelligence (AI) being the latest advancement. This session will provide an overview of how AI can be effectively administered within design firms. Key topics include establishing a vision and intended use for AI and implementing written AI practice standards. Presented by a professional liability insurance specialist, this session will also emphasize the importance of maintaining human oversight to uphold professional responsibility and
the standard of care.

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Posted by & filed under Events.

Presented by:
Diane P. Mika, Senior Vice President, Risk Management Officer, Berkley Design Professional

Tuesday, February 11, 2025
10-11:15 AM Pacific
12-1:15 PM Central
1-2:15 PM Eastern

Approved for
1.25 AIA Learning Units 
1.25 RCEP Professional Development Hours+

Berkley DP policyholders who participate in this program can qualify for a 15% Risk Management Education credit. Contact your agent for further information*

Before signing on the dotted line, you should carefully review every contract in the context of project-specific requirements, conditions, your firm’s standards and protocols, and language that is consistent with your professional liability insurance. During our upcoming webinar, Diane P. Mika, Senior Vice President, Risk Management Officer will showcase actual contract clauses that have crossed our desk and explain how to edit them for insurability.

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Posted by & filed under News Releases.

Glastonbury, Conn., December 16, 2024 – Berkley Alliance Managers, a Berkley company, specializing in professional liability insurance for design professionals, construction professionals and miscellaneous service professionals, announced it has promoted Christopher Downs to senior vice president, national sales & distribution director.

In this role, Chis will be responsible for distribution strategies and broker management for Berkley Alliance Managers’ business units: Berkley Design Professional, Berkley Construction Professional and Berkley Service Professionals.

“We are excited to have Chris take on this expanded role leveraging his experience in broker relations, underwriting and professional liability insurance,” said Stephen L. Porcelli, president, Berkley Alliance Managers.

“Having a dedicated broker relationship manager for our producers across all Berkley Alliance Managers’ businesses will strengthen our broker relationships and enhance our commitment to providing an exceptional customer experience,” continued Porcelli.

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Posted by & filed under Events.

Presented by:
Diane P. Mika, Senior Vice President, Risk Management Officer, Berkley Design Professional
Anthony Andersen, Senior Vice President, Professional Liability Claims Manager, Berkley Alliance Managers 
Lisa McKay, Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers 
Liz Molina, Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers 
Mark A. Froehlich, Esq. Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers 

Wednesday, December 4, 2024
10-11:15 AM Pacific
12-1:15 PM Central
1-2:15 PM Eastern

Earn Learning Units
Approved for 1.25 AIA Learning Units
Approved for 1.25 RCEP Professional Development Hours+
Health, Safety, and Welfare Qualified

Berkley DP policyholders who participate in this program can qualify for a 15% Risk Management Education credit. Contact your agent for further information*

In Season 2 of “Could This Happen to You,” Berkley DP claims examiners discuss four new claim tales. Each episode sets the stage with the project type, delivery method, and parties involved. You’ll get the juicy details of the problems that arose and discover the realities of the final resolution and meaningful lessons learned, providing you with valuable insights to help avoid or mitigate similar situations. 

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