Complimentary Webinar: Alternative Forms of Project Delivery

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Presented by:
Arlen M. Solochek, FAIA, Consulting Architect, Former Vice-Chancellor for Development and Facilities, MCCCD, Phoenix AZ
Andrew D. Mendelson, FAIA, Senior Vice President, Chief Risk Management Officer, Berkley Design Professional

Tuesday, August 23, 2022
10:00 a.m. Pacific Time/1:00 p.m. Eastern Time
Submitted for AIA CES Approval
1.5 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*

This webinar has been recorded and is available on demand for Berkley Design Professional policyholders and our appointed agents and brokers on the BDP Risk® Learning Management System.

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The purpose of this program is to compare and contrast construction delivery methods and implications for the design professional with insights from the owner’s perspective. It includes a thorough review of Design-Bid-Build, Construction Manager as Adviser (CMa), Construction Manager as Constructor (CMc, CMAR, CMGC), and Design-Build. For each of these delivery methods, the program will explore: the relationships of the parties and the contract structures; key features of the delivery method; practice and legal risk considerations for the design professional and owner; and wraps up with the benefits and concerns of the delivery method.

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Making the Go/No-Go Decision with Andy Mendelson | WTW A&E Podcast

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In Episode 14 of the WTW podcast, “Talk to me about A&E”, Dan Buelow, Managing Director, Architects & Engineers practice, sits down with our Chief Risk Management Officer, Andy Mendelson, FAIA. Andy discusses the critical “Go No-Go” considerations every design firm should include when assessing a new project opportunity including project team capabilities, financial impact, contracts and client selection.

Listen to the Podcast Now!

The Benefits of Centralizing Your Claims and Risk Management Responsibilities

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By Mark A. Froehlich
Assistant Vice President, Senior Claims Examiner
Berkley Alliance Managers, a Berkley Company

July 14, 2022

Centralizing claims and risk management responsibilities for architectural and engineering firms provides significant benefits. It saves time, reduces cost and improves outcomes.

Based on decades of managing complex architects and engineers professional liability claims, I recommend designating a specific individual as risk manager to supervise all claims and potential risk issues for your firm — regardless of the size of your firm.

I have worked with many architectural and engineering firms and I can confirm that having a designated risk manager in place is more efficient. Some firms establish a standalone risk manager role, while others assign risk management responsibilities to a firm leader.

Project managers are necessary to communicate details of specific project issues, but they are often too busy managing projects to also effectively manage claims. Alternatively, assigning this role to a firm leader or another designated person allows more efficient communication with brokers, insurers and attorneys.

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The Driving Forces Behind Rate Change

Posted by & filed under BDP Blog.

June 9, 2022

If you upgrade your Ford Focus to a Mustang before your next auto insurance renewal, would you expect to pay more? After all, you still only have one car. I don’t think anyone would be surprised to pay more in this situation. So why then do design firms and contractors get surprised by a premium increase when their annual fees/revenues remain the same, but they are performing work in different disciplines or doing different kinds of projects than last year?

The year over year exposure change is more than just a change in the rating basis. It’s the change in the firm’s entire risk profile. As a dramatic example, suppose a firm does $10 million of civil engineering work one year, but the next year that same firm does $10 million of structural engineering work. The firm will pay more in year two simply because they are engaging in a discipline with more risk.

This is the basic underlying concept of what actuaries mean by exposure-adjusted rate change. If the premium charged in the second year only reflected the move from civil work to structural work, the exposure-adjusted rate change would be zero. We fundamentally need to charge additional premium for the type of work that is more likely to give rise to more severe claims simply due to the nature of the work.

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Wherever Your Next Adventure Takes You, Have Peace of Mind with a Run-Off Policy

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By Barbara Block
Assistant Vice President, Senior Underwriter

May 5, 2022

You’ve worked hard for many years. Started your own business. Weren’t sure if you would make it, but you did. And, you fulfilled your dream of being the owner of a design professional firm. Congratulations!

Now the beach – or mountains or lake – summon you. It’s time to relax and enjoy the fruits of your labor with family and friends. Put all the pressure and stress of owning a business behind you. You’ve earned it and deserve it. But there is one more thing that you have to take care of to protect your future – purchase a run-off policy from Berkley Design Professional.

We know, another insurance policy? I thought I was done with that process, you say. Unfortunately, not. You see, even though your firm has closed its doors, you could still be liable for claims alleging wrongful acts for the services provided prior to the closure.

To protect yourself, you should purchase a form of tail coverage. Tail coverage covers incidents (claims) that happened during the time your professional liability policy was active, but were not reported until after the policy expired.

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Complimentary Webinar: Managing Risk through Effective Contracts

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

Thursday, June, 2, 2022
10:00 a.m. Pacific Time/1:00 p.m. Eastern Time
1.5 AIA Learning Units
1.5 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*

Your professional services agreement is an essential tool in managing your exposure to risk. An equitable contract fairly apportions risk, while an onerous contract can shift inordinate—and sometimes uninsurable—liability to you. The terms and conditions of the agreement establish the roles and responsibilities of the design professional and the client. The contract review and negotiation process provide you with an opportunity to set reasonable expectations with your client. And, in the event of a claim or dispute, your contract is the first piece of documentation the claims examiner will request.

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Core Values are Key

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By Robert J. Connor, JD, CIC
Senior Vice President, Chief Marketing Officer, Berkley Alliance Managers, a Berkley Company

April 7, 2022

As we get ready to celebrate Earth Day on April 22 and think about making our world a happier, healthier place to live, it makes me think about our corporate environments. What makes them a happier, healthier place to work?

Discovering, communicating and living your organizations authentic core values sure does. Core values light the way for your employees, lead other people to join your organization and encourage others to do business with it.

Core values are not created out of thin air. A company needs to discover them. They are the essence of who the company is and what they will become.

The definition of “core” is “the central or most important part of something.” The definition of “values” is “a person’s principles or standards of behavior; one’s judgment of what is important in life”. A key word in each definition is “important”. Thinking about that definition, what is important to companies with whom you conduct business?

This is a key question to ask companies with whom you are considering doing business with. Do they believe what you believe and value what you value? If your values are not in alignment with those you transact business with, then there are likely to be issues as the relationship grows and evolves.

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Why Your Contract Needs a Limitation of Liability Clause

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By Cindy Russell
Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers, a Berkley Company

March 10, 2022

News headlines: Architect pays $1 Million for Design Error on $15 Million Construction Project; Civil Engineer Tagged with a $250,000 Jury Verdict Because of Drainage Design Error – I could go on. Want to avoid your name in a headline like this? Include a limitation of liability clause in all your contracts (or as many as you can) and then the headline might read: Design Professional Only Pays $50,000 After $1 Million Verdict.

Contracts are a valuable tool for protecting design professionals when considering and agreeing to participate in projects. One way a contract can do this is by including a limitation of liability clause to manage the potential financial risks involved. However, note that the enforceability of this type of contract clause varies from state to state.

Some things to keep in mind when drafting a limitation of liability clause:

  • it should be reasonable (you’re unlikely to get a client to agree to a limitation of $10,000 when your fee is $500,000). The limit can be a specific dollar amount, equal to your fee or limited to the available limit on your professional liability policy;
  • it may need to be more visible than all the other contract terms and conditions (for example, underlined, bolded or a larger font), depending upon case law in the state governing the contract;
  • and the contract is strongest if signed by both parties (in some jurisdictions the contract and/or its terms and conditions may not be enforceable if it’s not signed).
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Complimentary Webinar: Ethics for Engineers, Architects, and Other Design Professionals

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Presented by:
Brian Sutter, ESQ. Managing Partner, Sugarman Law Firm LLP
Stephen Davoli, ESQ. Partner, Sugarman Law Firm LLP
Andrew D. Mendelson, FAIA, Senior Vice President, Chief Risk Management Officer, Berkley Design Professional

Tuesday, March 22, 2022
10:00 am – 11:15 am Pacific Daylight Time
1.25 AIA Learning Units
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*

This webinar has been recorded and is available on demand for Berkley Design Professional policyholders and our appointed agents and brokers on the BDP Risk® Learning Management System.

bdp Risk® lms login

Ethical behavior is integral to the practice of architecture and engineering, necessitated by the professional’s duty to protect the health, safety, and welfare of the public. Making decisions and taking action can be complicated by ethical obligations imposed by multiple bodies: professional association codes of conduct, state practice acts, and licensing board requirements. Using professional association codes of conduct as a framework, this workshop offers a four-step process to make sound ethical decisions and explores real-life ethical cases to illustrate the challenges, dilemmas, and consequences of unethical behavior. In addition, participants will take away six key strategies to avoid ethical problems.

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Ask an Underwriter

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What are deductible credits?

A method of recompense that rewards our policyholders for successful risk management procedures and/or a good loss history with BDP by reducing their deductible. Multiple deductible credits are available and may reduce the policyholder’s deductible obligation up to 50% or a maximum of $50,000. This benefit should be considered when comparing deductible options from other carriers.