Celebrating a Decade Together!

Posted by & filed under BDP Blog.

November 14, 2023

As the leaves change and the year comes to a close, we find ourselves reflecting on the journey of Berkley Design Professional. As you know, this year marks a significant milestone for us – our 10th Anniversary!

A decade ago, we embarked on a mission to provide outstanding service and expertise in the A&E professional liability insurance industry. Today, we’re proud to have achieved and surpassed many of our goals, thanks to your support and trust.

A Look Back

Over the past ten years, we’ve faced challenges, celebrated successes and forged lasting relationships. From our humble beginnings to becoming an industry leader, our growth story has been nothing short of remarkable. We’ve introduced innovative solutions, expanded our reach and most importantly, served thousands of satisfied clients.

Our Gratitude

Our success would not have been possible without our dedicated team and you, our valued brokers. Your feedback, loyalty and partnership have been the cornerstone of our achievements. As we celebrate this milestone, we want to extend our heartfelt gratitude to each one of you. Your belief in our vision and services has propelled us to new heights.

(more…)

Design/Construction Standards and Building Codes Evolving to Address Climate Change

Posted by & filed under BDP Blog.

By Andrew Mendelson, FAIA
Executive Vice President, Chief Risk Management & CX Officer
Berkley Design Professional, a Berkley Company

October 23, 2023

Climate change is already having a significant impact on the design and construction industry and this impact is only going to grow in the years to come. Extreme weather events such as hurricanes, floods, wildfires and tornadoes are becoming more frequent and severe and buildings and infrastructure are increasingly being damaged or destroyed.

In response to these challenges, building codes and construction standards are changing to address climate and extreme weather concerns. Local, State and Federal agencies are also working to update design and building requirements, a meaningful factor in the evolution of the standard of care for professionals in the industry.

Changes to building codes and construction standards

One of the most significant changes is an increasing focus on resiliency. Resilient buildings are designed to withstand extreme weather events and quickly regain functionality when damaged.

Specific changes include:

  • Higher wind load requirements: Buildings in areas prone to hurricanes and other high-wind events are compelled to withstand higher wind speeds.
  • Flood-resistant design: Buildings in flood zones are required to be elevated above the floodplain and to have flood-resistant materials and construction methods.
  • Wildfire-resistant design: Buildings in areas prone to wildfires are required to utilize fire-resistant materials and to create site features such as defensible perimeters and flame-resistant plantings.
(more…)

Retirement Planning for Design Professionals – Are Your Clients Covered for Professional Liability?

Posted by & filed under BDP Blog.

By Barbara Block
Vice President, Supervising Underwriter
Berkley Design Professional, a Berkley Company

June 6, 2023

Retirement for a design professional doesn’t just happen, it takes careful planning and preparation. Having a transition plan, a buy-sell agreement, successor development and planning are all considerations, but one area retiring professionals may overlook is having adequate professional liability coverage.

Given the current climate of increasing litigation, simply relying on the design professional’s prior firm to maintain their professional liability insurance policy in addition to having necessary limits to protect their assets in retirement is not necessarily the best or safest option.

When it comes to professional liability coverage for architects and engineers, claims don’t just occur when the project is underway. Claims can arise years after the project is complete and if the design professional is no longer a named insured under their prior firms’ policy, problems can occur.

(more…)

Be a Good Neighbor: Strategies to Mitigate Risk of Damage to Adjacent Properties

Posted by & filed under BDP Blog.

By Andrew Mendelson, FAIA
Executive Vice President, Chief Risk Management and CX Officer
Berkley Design Professional, a Berkley Company

May 9, 2023

One of the emerging 21st Century perils for design professionals, particularly for structural and geotechnical/CMT engineers and architects, is the potential impact of new projects on the condition and even the integrity of adjacent properties.

An architect or engineer’s legal duty is to their client according to the scope and terms of the professional services agreement as well as the responsibilities embodied in state statutes for licensed professionals. However, consideration should be given to adjacent property owners during the planning stages and efforts should be undertaken to protect against claims that could be made by other “injured parties” on adjacent properties.

In states where the applicable law embodies the principle of “joint and several liability,” disproportionate responsibility and financial exposure can be allocated to the design professional—even if their actions had very little to do with the cause of damages to an adjacent structure.

Trends in design and construction claims and litigation indicate the casting of an ever-widening net with plaintiffs seeking defendants with deep pockets, such as the professional liability insurance policy and the assets of a firm. Therefore, it’s prudent for design professionals to be proactive in managing risk with respect to potential exposure for damages beyond the property line of the project, especially in dense urban or suburban areas.

(more…)

Berkley Design Professional’s 10th Anniversary – Cheers to 10 Years!

Posted by & filed under BDP Blog.

By Larry Moonan
Executive Vice President, Chief Operating Officer, Berkley Design Professional, a Berkley Company

April 17, 2023

April marks the ten-year anniversary of Berkley Design Professional and we couldn’t be more excited! Over the past decade, we have established ourselves as a leader in the A&E marketplace by providing outstanding service to our brokers as well as comprehensive coverage, risk management support and exceptional claims handling for design professionals across the country.

The past ten years have been filled with some challenges and many successes, but throughout it all, our brokers have consistently supported and encouraged us. Our brokers have enabled us to grow and thrive and we are grateful for their unwavering commitment to Berkley Design Professional.

When we first started out, our vision was to create a business that would meet the unique needs of design professionals. Our goal was to provide insurance coverage that was tailored specifically to the risks faced by architects, engineers and other design professionals. Over the years, we have been able to do just that, offering a range of innovative insurance products designed to meet their diverse needs.

(more…)

To Sub or Not to Sub

Posted by & filed under BDP Blog.

March 14, 2023

To sub or not to sub, that is the question.

Should a firm retain a subconsultant that flows through them on a project, or should a firm let the owner directly retain the other design professional?

It’s probably not the first time that an architect or engineer has seen this question posed, nor will it be the last.

I raise this question not because it is an exciting topic, but because it is a very relevant claim scenario that I have seen time and time again.

Here are some things to think about:

  • Has your client considered what it would do if its subconsultant stopped responding to phone calls or emails?
  • What would happen if the subconsultant simply shut its doors without notice to your client in the middle of a project?

I know that a firm would not think this scenario would happen to them, especially if the subconsultant is a firm that your client has worked with in the past and has a good relationship with. But it happens.

(more…)

What’s in a Name?

Posted by & filed under BDP Blog.

Why names matter on a professional liability insurance policy

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

December 8, 2022

Let me introduce myself. My name is Cindy Russell; well, my full name is Cynthia Russell. Maybe you need to know my maiden name was Ellis. Why does all this matter? Depends on what you need it for: looking up my records at the doctor’s office (Cynthia Russell), if I’m calling the financial company that has my IRA (Cynthia Ellis Russell) or social media (Cindy Russell), for example.

For architects and engineers, it matters for insurance coverage, contract considerations and the name by which the public knows them.

A design professional liability insurance policy (and likely other types of policies) provides coverage for a specific firm name or names. If a claim is made against a firm name that’s not included on the insurance policy, coverage may not be provided for that claim.

Sometimes even a small difference has a big effect. For example, John and Julie’s Architectural Group is a Named Insured on a policy but it also uses the legal name of J&J Architectural Group in certain markets or maybe it used that name previously but changed it a couple of years ago. A claim is made against J&J Architectural Group and that claim is based on a project it took on under this alternate name or the prior name. However, this additional name wasn’t provided to the insurance broker (or the insurance company underwriter) so it’s not a Named Insured on the professional liability policy and because of this it may not have coverage for the claim.

(more…)

BDP Risk® Delivers Mutually Assured Success

Posted by & filed under BDP Blog.

By Diane Mika
Vice President, Director of Risk Management Education
Berkley Design Professional, a Berkley Company

At its simplest, insurance can be described as “a piece of paper and a promise.” Customers buy a
piece of paper (an insurance policy) and the insurance company promises to pay in the event there
is a claim.

It’s no secret that professional liability claims against architects and engineers can be expensive—both to the insurance company (cost of resolving claims and paying damages) and to the policyholder (paying deductibles). In addition to the hard costs of resolving a claim, design firms must also absorb the soft costs: lost staff time, lost opportunities, diminished relationships and increased future insurance premiums.

Therefore, the key to mutually assured success is mitigating claims. That’s where BDP Risk® comes in!

Our risk management education program provides relevant learning from the practitioner’s perspective coupled with the wisdom of decades of experience in the insurance industry. Based on a solid understanding of what factors and situations lead to claims against architects and engineers, our BDP Risk® training resources, materials and courses are designed to teach effective practices and strategies that can be put to immediate use to help customers avoid risk and reduce the frequency and severity of claims.

(more…)

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.

(more…)

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

Posted by & filed under BDP Blog.

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.

(more…)