Condo risks in focus as A&E market tightens

Posted by & filed under Published Articles.

By Michael Bradford | November 1, 2021

Rising losses are causing underwriters to rethink the way they analyze architects and engineers professional liability risks, and the deadly collapse of a condominium building in south Florida earlier this year is raising further concerns. 

Coverage prices have moved up gradually over the past three years as A&E professional liability losses have become more frequent and severe, sources say.

And while the collapse of the Champlain Towers South condo building in Surfside, Florida, is not expected to immediately have a widespread impact on rates, it is bringing closer scrutiny to condo risks and could eventually lead to coverage restrictions, they say.

“The Surfside condo collapse will heighten awareness around the risks associated with this project type and will likely cause a further tightening for condo projects,” Lawrence Moonan, executive vice president and chief operating officer at Monterey, Calif.-based Berkley Design Professional, a unit of W.R. Berkley Corp., said in an email.

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Thankful for Insurance? You betcha!

Posted by & filed under BDP Blog.

By Victoria (Tori) Rabadi
Assistant Vice President, Marketing Communications

November 10, 2021

Say the word insurance to almost anyone and watch them roll their eyes while a disinterested look comes over their face. This, my friends, is not the response people in the insurance industry deserve.

Most of us are fortunate and should be thankful we have insurance coverage available to protect and stabilize our lives and businesses if a disaster or unexpected event strikes. As such, a little gratitude and thankfulness is in order.

It would be wise for us to reconsider how we think about insurance. Insurance is amazing! There, I said it and I mean it. Here is why.

Let’s remember that insurance protects people and businesses against financial losses, damages, and injuries associated with unforeseen events. It protects your health, your life, your home, your property, your car, your business and your reputation; any of which should you lose, would be devastating, to say the least. Wow—insurance does all of that? Amazing!

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Ask an Underwriter

Posted by & filed under Ask an Underwriter.

How many types of loss run reports are available?

We have two loss run report options to choose from:

1. A full loss run with all claims, and claim prevention files (claimant names are displayed).

2. A claim only loss run (claim prevention files are not included and claimant names are not displayed). This type of loss run may be needed when a firm is completing an RFP for a project.

AIA Contract Documents Free Webinar | Top Five Risk Avoidance Strategies for Contractors

Posted by & filed under Events.

Presenter:
Andrew D. Mendelson, FAIA, Berkley Alliance Managers, SVP, Chief Risk Management Officer

Date: Thursday, November 18, 2021
Time: 1:00 – 2:00 p.m. EST

Construction is a risky business, especially in today’s climate.  Attend a free webinar where expert presenters will review the top 5 strategies contractors can utilize to avoid and mitigate risk on their construction projects.  Presenters will discuss the process for contractors to develop company policies, processes, and protocols to facilitate quality control and financial success, including how to establish a standard process for authorship, review, and approval of proposals and contracts.  The importance of working with design professionals and subcontractors who have experience in the project type; promoting a safe and collaborative work environment; and encouraging thorough communication and sharing of best practices will also be explored during this session.

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Ask an Underwriter

Posted by & filed under Ask an Underwriter.

How are weighted fees calculated?

For the Prime program: by using an average of 4 years of fees – the current year and the last 3 complete years. Adjustments are made for years that are less than 70% of the following year.

For the Express program: by using an average of 3 years of fees – the current year and the last 2 complete years. Adjustments are made for years that are less than 70% of the following year.

– Barbara Block | Assistant Vice President, Senior Underwriter

Parenting Advice That Can Save You Money on Professional Liability Insurance

Posted by & filed under BDP Blog.

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

October 4, 2021

Parents often struggle with ways to get their children to develop good habits that will serve them well later in life. There is the age-old debate of the carrot versus the stick and which one, reward or negative consequences works best.

At Berkley Design Professional, we come down squarely in the carrot column! We believe that positive reinforcement is the way to encourage our policyholders to develop beneficial risk management habits.

Berkley Design Professional policyholders can earn up to 40% in credits on their annual professional liability insurance policy. Yes, we did say 40%. How, you ask? I would be happy to explain.

Policyholders that use a limitation of liability clause in their contracts for professional services can earn up to a 25% premium credit each policy year. More specifically, we look at the percentage of fees that a design firm has under contracts with limitation of liability clauses with the liability limited to $250,000 or less and we take that percentage and cut it in half to arrive at the credit percentage–up to a maximum of 25% credit. For example, if a design firm has 40% of their fees derived from contracts that contain a limitation of liability clause limiting their liability to $250,000, then that firm would earn a 20% premium credit. It is that simple!

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Ask an Underwriter

Posted by & filed under Ask an Underwriter.

Why is an annual renewal application required?

Colleen Kennedy

Every policyholder is underwritten for acceptability and coverage terms whenever a new quote is offered. Data points from the application are entered into a rating model used for premium development. Updating the information on an annual basis ensures any changes in a policyholder’s risk profile are appropriately reflected in the renewal premium and coverages offered.

– Colleen Kennedy | Assistant Vice President, Senior Underwriter

Per Project Primary Limits Coverage

Posted by & filed under BDP Blog.

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

September 9, 2021

Berkley Design Professional has always strived to provide innovative coverages and Per Project Primary Limits is one of those coverages!

We believe this new way to look at and cover A&E professional liability risks can provide significantly increased value for our policyholder’s insurance dollar.

A few years ago we introduced Per Project Primary Limits in many different ways and thought this innovative coverage would become very popular. We were mistaken.

To figure out why we weren’t writing more of this game-changing coverage we contacted a number of our brokers. And the resounding answer–it was too confusing to explain to a client or prospect and they didn’t have the time to explain a coverage they probably would not sell. So, we put our heads together to see if we could provide a simpler way to describe this innovative approach to A&E professional liability insurance coverage. Here’s our updated, simpler explanation.

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Ask an Underwriter

Posted by & filed under Ask an Underwriter.

Does your policy provide worldwide coverage?

Our policy applies worldwide. In addition, firms with projects in other countries will also have a Limited Worldwide Coverage endorsement attached. The endorsement changes coverage when claims are brought against the policyholder outside of the U.S. and will reimburse the policyholder for damages and reasonable and necessary costs of investigating and defending any such claim.

– Debbie Ferris | Assistant Vice President, Senior Underwriter

Complimentary Webinar: A Design Professional’s Guide to Dispute Resolution

Posted by & filed under Events.

Presented by:
Ted D. Levin, Member, Clark Hill, LLP
Andrew D. Mendelson, FAIA, Senior Vice President, Chief Risk Management Officer, Berkley Design Professional

Wednesday, September 29, 2021
10:00 am – 11:30 am Pacific Daylight 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*

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

In today’s complex design and construction environment, disputes will occur. Often the difference between success and failure is whether you have planned for the inevitable. This webinar will show you the root causes that frequently lead to disputes and arm you with strategies to mitigate those situations before the project even begins. You’ll learn why it’s important to define the dispute resolution process in your contract—and receive sample contract language you can begin using right away. You’ll gain insight from a typical dispute resolution flowchart and a deeper understanding of the mechanics, costs, pros, and cons of these common methods: step negotiations, mediation, litigation, and arbitration. Finally, you’ll learn how to identify when trouble is brewing on your project and get a roadmap of what to do next.

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