Free Webinar: Managing Risk Through Effective Contracts

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Contracts Webinar

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

Tuesday, July 16, 2024
10-11 AM Pacific
12-1 PM Central
1-2 PM Eastern

Earn Learning Units
1.0 AIA Learning Unit
1.0 RCEP Professional Development Hour+

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 parties, and the negotiation process provides an opportunity to set reasonable expectations with your client.

This workshop reviews the risk management fundamentals that underlie the development of effective contracts, the contract review process and key clauses that impact your risk exposure.

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Controlling Outcomes and Preserving Relationships Through the Mediation Process

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By Lisa MacKay, Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers, a Berkley Company
Liz Molina, Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers, a Berkley Company

June 21, 2024

Controlling Outcomes and Preserving Relationships Through the Mediation Process

As claims handlers, we always look for reasonable opportunities to resolve our claims. Mediation is the most common and beneficial pathway to claims resolution. Most professional liability policies offer incentives for insureds to attend mediation and resolve their disputes. Moreover, mediation provides a means to foster and preserve relationships with insured clients. There are occasions when we can socialize, share some ideas, interact and even find common ground with other insurance professionals as well as attorneys. This ability to connect with others and with the help of a neutral third party or mediator, gives us some control over the outcome of a case and avoids the unknown risk of a decision being rendered by a judge or jury.

With social inflation on the rise and sometimes resulting in extreme jury awards, resolution through mediation is the best way to take the uncertainty and risk of the outcome out of the hands of the judge or jury. The interactive process promotes a free flow of information and allows parties to identify and discuss the strengths and weaknesses of the case in a confidential setting. The mediator assists the parties in exploring legal issues and in evaluating the recoverability of certain damage items that may not have been discussed. An effective mediator also helps to narrow the gap between alleged damages, which are sometimes overstated, and what would ultimately be recoverable to move the parties closer together and to assist them with becoming better informed to evaluate risk and exposure.

For many people, whether the case involves a personal or professional matter, having a dispute that rises to the level of a claim whether litigated or not, is a new and unfamiliar experience, and often “uncharted territory.” The claim and litigation process can be intimidating, uncomfortable, frustrating and disappointing. This experience is also true in mediation. For example in negotiations, unreasonable opening offers can lead to frustration and irritation and cause parties to become more entrenched and unwilling to concede their position. It is not a natural process to most and there is a lot of gamesmanship and strategy on all sides. We often have preliminary conversations with our insured clients and counsel to set the tone and keep an open mind as we prepare ourselves for unrealistic opening demands. The valuation of a case or position becomes more realistic after discussions or back-and-forth offers are made in mediation. The process itself may take more than one session, especially if the parties are entrenched, to allow them time to process the information and better evaluate risk and exposure.

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Limiting Risk with a Waiver of Consequential Damages Clause in Contracts

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May 14, 2024

Each year, insurers, defense counsel and design professionals are faced with ever increasing damages sought in actions alleging breach of contract and negligence due to the design professional’s alleged error or omission. One reason for the inflation is the tendency by plaintiffs’ counsel to seek an ever-expanding list of damages, including direct and consequential damages.

Direct damages are the costs to repair or replace the error that was caused by the design professional’s negligence. However, plaintiffs’ counsel are also seeking special or indirect damages called “consequential damages”, which include things like lost rents, rental costs for replacement property, damages to business reputation or the loss of goodwill, down time or idle time, material escalations, home office overhead costs, additional energy costs, increased construction management/supervision costs and additional interest and finance charges. For example, the cost to complete unfinished work on time may be very small in comparison to the loss of operating revenue a client might claim as a result of late completion.

Effective risk management in the construction industry begins with drafting a contract that limits the design professional’s exposure to damages. Design professionals, whenever possible, should try to obtain a limitation of liability provision in their contracts so that their liability can be limited to their professional fee or a multiplier of the fee. However, some owners will not agree to such a provision, so design professionals should look to include a mutual wavier of consequential damages in their contracts. This would limit the design professional’s exposure for a loss only to the direct costs to repair or replace the error, which is important since consequential damages can be so out of proportion with the reward of a typical design contract.

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

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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.
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Free Webinar: Project Risk Engineering for General Contractors

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Presented by:
Andrew Mendelson, FAIA, EVP, Chief Risk Management Officer, Berkley Design Professional
Timothy Brashear, P.E., Officer and VP, Construction Services, Rimkus

Thursday, November 2, 2023
10:00 a.m. to 11:00 a.m. Pacific Daylight Time
1.0 AIA Learning Units 
1.0 RCEP Professional Development Hour

This one-hour webinar was developed to provide participants with a working knowledge of the due diligence and risk engineering recommended practices for a robust and formal risk assessment, project selection, and risk transfer process for construction projects. 

A comprehensive risk engineering process is necessary to determine the bid, preconstruction, design development, construction, delivery, and warranty risks associated with a project and to enhance a contractor’s ability to achieve an on-time, in budget, fit for purpose, project delivery.

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Complimentary Webinar: Could This Happen to You? A Compendium of Claim Tales and Lessons Learned

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Complimentary Webinar: Could This Happen to You? A Compendium of Claim Tales and Lessons Learned

Presented by:
Diane P. Mika, Senior Vice President, Risk Management Officer, Berkley Design Professional
Cindy Russell, Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers
Michael Cecere, Assistant Vice President, Senior Claims Examiner II, Berkley Alliance Managers
Liz Molina, Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers
Derek E. Steffen, Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers

Wednesday, October 25, 2023
10:00 a.m. to 11:30 a.m. Pacific Daylight Time
1.5 Health, Safety, and Welfare AIA Learning Units 
1.5 Technical, Health, and Safety 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 program tells the tale of four claims. Each will be presented by a Berkley DP claims examiner who will set the stage by describing the project type, delivery method, and parties involved, followed by the problems that arose and technical factors that led to the claim. The resolution and lessons learned for each case will be revealed, including the impact of the design professionals’ errors and omissions on the project and its owners/users. These valuable insights will help participants examine and improve their business practices and project controls to avoid similar situations.

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Free Webinar with Deltek | Managing Project and Financial KPIs to Boost Firm Profitability

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Presented by:
Andrew Mendelson, FAIA, EVP, Chief Risk Management & CX Officer, Berkley Design Professional
Megan Miller, Director, Product Marketing, Deltek

Wednesday, September 13, 2023
1:00 pm to 2:00 pm Eastern Time
1 AIA Learning Unit
1 RCEP Professional Development Hour

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

Managing projects goes beyond just schedule and deliverables, but also requires a focus on project performance and profitability as well as the overall impact of the project to the bottom line. In this session, attendees will gain insight into top key performance indicators (KPIs), identify industry benchmarks for KPIs, and understand how to leverage the metrics to boost profitability.

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Berkley Design Professional Now Participating in the Deltek Marketplace Partner Network

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New Relationship Helps Bring Tailored Insurance Protection to Design Professionals

Monterey, California (August 8, 2023) — Berkley Design Professional, a division of Berkley Alliance Managers, a Berkley Company, is excited to announce it has joined the Deltek Marketplace. Now, it will be even easier for Deltek customers and prospects to learn about Berkley Design Professional’s specialized insurance products focused on the unique risk management needs of Architects and Engineers.

“This relationship enables Berkley Design Professional and Deltek to provide thought leadership in new, innovative ways that will help our mutual clients improve business practices, minimize risk and confidently build a better future,” says Larry Moonan, executive vice president and chief operating officer of Berkley Design Professional.

Berkley Design Professional’s coverage is specifically tailored to help protect firms from losses resulting from negligent acts, errors or omissions in the performance of professional services.

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Free Webinar with Deltek | Developing a Risk Management Plan for Your Firm

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Presented by:
Andrew Mendelson, FAIA, EVP, Chief Risk Management & CX Officer, Berkley Design Professional
Michael Heinsdorf, PE, Senior Director, Product Alliances, Deltek

Wednesday, August 9, 2023
2:00 pm to 3:00 pm Eastern Time

Developing a formal risk management plan is an essential step in proactively protecting your firm from financial risk, and setting your firm up for success.

During this session, our Chief Risk Management Officer, Andy Mendelson, will join Michael Heinsdorf from Deltek with the key steps you can take to reduce your risk with a formal plan at your firm, and explain the importance of understanding what risks can be controlled through legal contracts and insurance products.

Session highlights:

  • Learn how to establish a risk management team to proactively identify, assess, and mitigate risk
  • Explore how careful project and client selection can significantly reduce potential risks
  • Gain insights into the importance of understanding the role of legal contracts and insurance products in managing risks effectively
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WTW A&E Webinar: Pre-Construction Services – Cure or Curse?

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Presented by:
Andrew Mendelson, FAIA, EVP, Chief Risk Management & CX Officer, Berkley Design Professional
David Ericksen, Esq., Attorney at Law, Hinshaw Culbertson

Monday, December 11, 2023
11:30 am – 1:00 pm Central Time

Andy Mendelson, executive vice president and chief risk management officer, will co-present alongside David Ericksen on a WTW A&E webinar, “Pre-Construction Services – Cure or Curse?”, on Monday, December 11.

Third-party review and comment on any design professional’s work product can be uncomfortable. It exposes the design to critique, second guessing and “alternative” views. However, it can also validate and improve the design before any deficiencies lead to economic harm and consequences.

Drawn from real-life cases in the media and courts, this program will highlight the potential risk and risk management opportunities emerging from third-party pre-construction design review by other design professionals, contractors and construction managers. In addition, it will offer corresponding strategies to help you successfully engage in those processes as the designer or the reviewer.

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