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.
(more…)