Engineering Inc - January/February 2018 - 36

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doing for you, how well they're working
with you and understand your business
and how you operate so you are protected," says Cecchi.
Firms whose carriers have left the marketplace could face challenges with claims
that may arise. "Carriers that still have
the capital and a claims department will
continue to honor claims, but they may
no longer have specialists working on
design-related claims," says Mike Welbel,
vice president at Risk Strategies Co. and
president of a/e ProNet. For that and
other reasons, Welbel recommends against
carriers that are not in it for the long term.
"Staying with the same carrier over the
years allows a designer to build relationships with claims people and underwriters,
as well as 'a cache of premium,' so when there's a loss, any rate
increase may be moderated," says Welbel.
"Firms should have a good reason to leave their existing carrier," Blanchard says, noting price tends to be a significant factor
followed by the need to go elsewhere for coverage enhancements. "Firms that switch based on
price may only find they are unhappy with the
service they receive or the resources available to
them. In most cases, newer carriers cannot offer
the same program benefits as established carriers for education programs, contract reviews or
pre-claims assistance," Blanchard says.

"Carriers are finding better ways to package the services they
offer as a way to help young engineers access their education
materials and understand the risks involved in design
consulting," says Cecchi.
For example, Victor O. Schinnerer &
Co., Inc., recently launched a new risk
management resource for policyholders,
the Schinnerer School of Risk Management. Schinnerer's web-based School
gives policyholders 24-7 access to continuing education courses, tracks continuing
education credits and even files certification
with states for licensing or accreditation.
"The School of Risk Management also
allows firms to manage access and has
course recommendations for engineers with
all levels of experience," says Collins.
"Today, carriers across the board provide
contract reviews, risk management seminars
and pre-claims assistance, though some do it much better than
others," says Connelly.

The 2017 PLI Survey
of Carriers showed
that nearly half of
the responding
carriers avoid or
place restrictions
on residential, condo
and geotechnical
projects

RISK MANAGEMENT

Selecting a carrier and a contract is only part of
risk management.
"Engineering firms need to learn about where
liability exists and should rely on their insurance
agent and carrier to help identify those risks,"
says Blanchard. She says annual education programs are helpful,
regardless of whether the firm earns a premium credit. Because
every firm and every insurance company is different, Blanchard
recommends firms that firms work with an agent that specializes
in the A/E industry and that can provide guidance on
maintaining a solid risk management program.

LOOKING AHEAD

Moonan sees a few challenges and potential risks ahead, including the impact of technology and how it blurs lines between
the engineering and construction side, and
changes the dynamics in delivering projects.
"Staying with the same carrier
"The challenge is to continue to leverage techover the years allows a designer nology without it creating more liability," says
Moonan. Noting that the younger generation
to build relationships with claims works differently from more seasoned engipeople and underwriters, as well neers, he sees firms focusing on how to attract
that talent and manage those people-incorpoas 'a cache of premium,' so when rating them into the firm's process or changing
the firm's process to play to their strengths. ■

there's a loss, any rate increase
may be moderated."

MIKE WELBEL | A/E PRONET
36

ENGINEERING INC.

JANUARY / FEBRUARY 2018

Maureen Conley is based in Washington, D.C., and
has more than 25 years of experience writing about
science, engineering and government policy.

Table of Contents for the Digital Edition of Engineering Inc - January/February 2018