Engineering Inc. - July/August 2006 - 14
Calm Seas By Maureen Conley New ACEC survey shows the cost of professional
liability insurance has leveled off, but firms need to remain vigilant
about exposure I industry. While her company's associated hidden costs.
nsurance rates and claims activity have 50-year track record provides
Alfred C. Chinn, president stabilized, according to ACEC's 2006 sufficient
data to satisfy under- of the Professional Liability writers that rates
currently are Agents Network, sees two Professional Liability Insurance
Survey where they need to be, Enos possibilities: There are two of Member
Firms for F.Y. 2005. cautions that insurance carriers areas that could
make rates will be monitoring economic more volatile. First, if there is
Still, insurance carriers advise design forces closely. a proliferation in
claims in the professionals to remain cautious about Sandridge calls
inflation already high-risk residential probably the biggest emerging
construction sector that has choosing projects that could add too threat
right now, while noting been so robust during the much burden to their
firms' workload. that claim activity was much recent past. And secondly,
higher in the early 1980s, when if there are any significant The sea of
the professional look at factors other than price inflation hit the 15- to
18- changes that impact the sever- liability marketplace is calm, when
making decisions about percent range. Still, higher infla- ity of claims
for engineers and says Chuck Kopplin, principal professional liability
insurance, tion introduces greater uncer- other design professionals, at
Graef, Anhalt, Schloemer & including risk management tainty into schedule
and cost such as adverse judicial or Associates and a former chair-
education programs, longevity projections and, together with legislative
actions, or a major man of ACEC's Risk Manage- and client satisfaction.
shortages in critical commodi- downturn in the economy. ment Committee.
Everything Several carriers also say that ties and higher interest rates,
He adds that it will be you want is there: You have issues once considered
looming can make bidding very unpre- important for firms to focus plenty of
capacity, a lot of problems such as mold and dictable, he says. If the
claim on client and project selection people who want to insure you,
asbestos have turned out to be frequency rises as it did in that most
align with a firm's and rates are not going through not nearly as bad as
expected. the 1980s Sandridge says loss capabilities for a successful the
roof. While residential work contin- claims could rise dramatically.
project. Building strong proj- While some firms may see ues to carry a
somewhat higher Tom Bongi, director of ect teams should be a priority,
premiums up from last year, he risk, insurance executives are industry
relations for XL Design he says. Especially given the adds, those
increases generally not expecting any specific new Professional, says the
growing shortage of experienced and reflect growth in billings and
problems. demand for infrastructure work qualified engineers available in
exposure rather than actual rate stemming from the rebuilding the
profession. Future Trends increases. of hurricane-damaged areas in
Prudence Pays Off Homer Sandridge, vice presi- Carriers, however, are
monitor- the Southeast combined with dent for professional liability at
ing economic trends that could significant new transportation Despite the
overall good news, St. Paul/Travelers, says there's translate to higher
claims in funding approved by Congress Enos says that design firms even
more good news in the the future. last year and the shortage of must
remain vigilant about the stability of claims an impor- Katherine Enos,
senior vice qualified design professionals clients with whom they decide
tant factor that enables carriers president and underwriting could create
the perfect storm to do business. Although the to keep rates level. The
survey manager for CNA/Schinnerer's for rising claims. Enos also noted
survey results indicate some shows that 59 percent of the mid-size design
firm group, that as engineering firms increas- design professionals are
doing 532 respondents saw no claims predicts that soaring energy ingly
outsource design work, and just that 36 percent said they against their
firm, while 19 costs, construction cost infla- thereby drive down their
short- frequently or sometimes turn percent had just one. This stable tion
and rising interest rates term costs, carriers are watching down work
because of concern environment allows firms to will impact the
construction to see whether there may be over potential risks Sandridge 14
ENGINEERING INC. July / AuGust 2006
Engineering Inc. - July/August 2006
Table of Contents for the Digital Edition of Engineering Inc. - July/August 2006
Contents
From ACEC to you
News & Notes
Legislative Action
Cover Story: Structural Resistance
Calm Seas
Outside the Lines
Rgw 2006-2007 ACEC Executive Committee
Fall Conference Preview
Business In Sights
Members in the News
Engineering Inc. - July/August 2006 - Cover1
Engineering Inc. - July/August 2006 - Cover2
Engineering Inc. - July/August 2006 - News & Notes
Engineering Inc. - July/August 2006 - 4
Engineering Inc. - July/August 2006 - 5
Engineering Inc. - July/August 2006 - Legislative Action
Engineering Inc. - July/August 2006 - 7
Engineering Inc. - July/August 2006 - Cover Story: Structural Resistance
Engineering Inc. - July/August 2006 - 9
Engineering Inc. - July/August 2006 - 10
Engineering Inc. - July/August 2006 - Contents
Engineering Inc. - July/August 2006 - From ACEC to you
Engineering Inc. - July/August 2006 - News & Notes
Engineering Inc. - July/August 2006 - 4
Engineering Inc. - July/August 2006 - 5
Engineering Inc. - July/August 2006 - Legislative Action
Engineering Inc. - July/August 2006 - 7
Engineering Inc. - July/August 2006 - Cover Story: Structural Resistance
Engineering Inc. - July/August 2006 - 9
Engineering Inc. - July/August 2006 - 10
Engineering Inc. - July/August 2006 - 11
Engineering Inc. - July/August 2006 - 12
Engineering Inc. - July/August 2006 - 13
Engineering Inc. - July/August 2006 - Calm Seas
Engineering Inc. - July/August 2006 - 15
Engineering Inc. - July/August 2006 - 16
Engineering Inc. - July/August 2006 - I-1
Engineering Inc. - July/August 2006 - I-2
Engineering Inc. - July/August 2006 - I-3
Engineering Inc. - July/August 2006 - I-4
Engineering Inc. - July/August 2006 - I-5
Engineering Inc. - July/August 2006 - I-6
Engineering Inc. - July/August 2006 - I-7
Engineering Inc. - July/August 2006 - I-8
Engineering Inc. - July/August 2006 - I-9
Engineering Inc. - July/August 2006 - I-10
Engineering Inc. - July/August 2006 - I-11
Engineering Inc. - July/August 2006 - I-12
Engineering Inc. - July/August 2006 - I-13
Engineering Inc. - July/August 2006 - I-14
Engineering Inc. - July/August 2006 - I-15
Engineering Inc. - July/August 2006 - I-16
Engineering Inc. - July/August 2006 - I-17
Engineering Inc. - July/August 2006 - I-18
Engineering Inc. - July/August 2006 - Outside the Lines
Engineering Inc. - July/August 2006 - I-20
Engineering Inc. - July/August 2006 - I-21
Engineering Inc. - July/August 2006 - I-22
Engineering Inc. - July/August 2006 - I-23
Engineering Inc. - July/August 2006 - I-24
Engineering Inc. - July/August 2006 - 17
Engineering Inc. - July/August 2006 - Outside the Lines
Engineering Inc. - July/August 2006 - 19
Engineering Inc. - July/August 2006 - 20
Engineering Inc. - July/August 2006 - 21
Engineering Inc. - July/August 2006 - Rgw 2006-2007 ACEC Executive Committee
Engineering Inc. - July/August 2006 - 23
Engineering Inc. - July/August 2006 - Fall Conference Preview
Engineering Inc. - July/August 2006 - 25
Engineering Inc. - July/August 2006 - Business In Sights
Engineering Inc. - July/August 2006 - Members in the News
Engineering Inc. - July/August 2006 - 28
Engineering Inc. - July/August 2006 - 29
Engineering Inc. - July/August 2006 - 30
Engineering Inc. - July/August 2006 - 31
Engineering Inc. - July/August 2006 - 32
Engineering Inc. - July/August 2006 - Cover3
Engineering Inc. - July/August 2006 - Cover4
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