Engineering Inc. - July/August 2007 - 24
Claims Experience Though the number of claims filed is holding steady, carriers say claims are becoming increasingly expensive to defend against, and—for the relative few where damages are awarded—indemnity payments are on the rise. Parsons says she has seen more claims exceed $1 million as labor, materials and medical costs continue to rise; projects become more complex; and contractors— and their attorneys—make claims more effectively. Two decades ago, it was rare that a claim exceeded $50 million; today, there are as many as 10 such claims a year, says Sullivan, including a few in the $100 million range. Communications continues to be the big- ome insurance carriers are “pricing irresponsibly” at levels they “are not going to be able to sustain over the long haul.” AlBert rABAsCA Xl insUrance s gest source of claims (25 percent), followed closely by errors and omissions (23 percent) (see Figure 2). Kopplin notes that privatesector clients accounted for a larger proportion of claims in F.Y. 2006 (35 percent), compared with 24 percent in F.Y. 2005. Public-sector claims for the same period are up slightly from 18 to 21 percent, the survey says. XL has seen increased claims in school and residential projects, particularly those funded by the public sector, which Rabasca says “tends to be fairly strict when it comes to cost recovery.” Still, he points out, just 9 percent of claims are resolved in court; more than half are resolved before a lawsuit is filed. According to the survey, 65 percent of firms saw no claims in F.Y. 2006. Sanders attributes much of that stability to a vibrant construction industry, particularly in the southeastern United States. “When things are going gangbusters, someone is more likely to overlook a $50,000 problem,” he says, so today claims “are not as rampant as they will be when the economy turns the other direction.” Condominiums continue to be an area of high risk, and “insurance companies are trying like crazy to figure out a way to cover them properly without charging the world for them,” Sanders says. Several industry-led committees and taskforces have been established to address the issue. Though there is no solution yet, he says, firms appear more inclined to use contractual risk-management strategies for condo projects, which— 24 ENgINEERINg INC. July / August 2007
http://www.insightinsurance.com/index.php?id=architects
http://www.insightinsurance.com/index.php?id=architects
Engineering Inc. - July/August 2007
Table of Contents for the Digital Edition of Engineering Inc. - July/August 2007
Call for Entries
Contents
From ACEC to You
News & Notes
Market Watch
Legislative Action
The Big Dig
Risky Engineering
2007 Professional Liability Survey
Institute For Business Management Fall 2007 Course Catalog
Roadside Technology
2007 Convention Wrap-Up
2007-2008 Excom
2007 Fall Conference Primer
Business Insights
Technology
Members in the News
One on One
Engineering Inc. - July/August 2007 - Cover1
Engineering Inc. - July/August 2007 - Cover2
Engineering Inc. - July/August 2007 - Call for Entries
Engineering Inc. - July/August 2007 - C2
Engineering Inc. - July/August 2007 - C3
Engineering Inc. - July/August 2007 - C4
Engineering Inc. - July/August 2007 - C5
Engineering Inc. - July/August 2007 - C6
Engineering Inc. - July/August 2007 - C7
Engineering Inc. - July/August 2007 - C8
Engineering Inc. - July/August 2007 - Contents
Engineering Inc. - July/August 2007 - From ACEC to You
Engineering Inc. - July/August 2007 - 3
Engineering Inc. - July/August 2007 - News & Notes
Engineering Inc. - July/August 2007 - 5
Engineering Inc. - July/August 2007 - 6
Engineering Inc. - July/August 2007 - Market Watch
Engineering Inc. - July/August 2007 - 8
Engineering Inc. - July/August 2007 - 9
Engineering Inc. - July/August 2007 - Legislative Action
Engineering Inc. - July/August 2007 - 11
Engineering Inc. - July/August 2007 - The Big Dig
Engineering Inc. - July/August 2007 - 13
Engineering Inc. - July/August 2007 - 14
Engineering Inc. - July/August 2007 - 15
Engineering Inc. - July/August 2007 - 16
Engineering Inc. - July/August 2007 - 17
Engineering Inc. - July/August 2007 - Risky Engineering
Engineering Inc. - July/August 2007 - 19
Engineering Inc. - July/August 2007 - 20
Engineering Inc. - July/August 2007 - 21
Engineering Inc. - July/August 2007 - 22
Engineering Inc. - July/August 2007 - 2007 Professional Liability Survey
Engineering Inc. - July/August 2007 - 24
Engineering Inc. - July/August 2007 - Institute For Business Management Fall 2007 Course Catalog
Engineering Inc. - July/August 2007 - I2
Engineering Inc. - July/August 2007 - I3
Engineering Inc. - July/August 2007 - I4
Engineering Inc. - July/August 2007 - I5
Engineering Inc. - July/August 2007 - I6
Engineering Inc. - July/August 2007 - I7
Engineering Inc. - July/August 2007 - I8
Engineering Inc. - July/August 2007 - I9
Engineering Inc. - July/August 2007 - I10
Engineering Inc. - July/August 2007 - I11
Engineering Inc. - July/August 2007 - I12
Engineering Inc. - July/August 2007 - I13
Engineering Inc. - July/August 2007 - I14
Engineering Inc. - July/August 2007 - I15
Engineering Inc. - July/August 2007 - I16
Engineering Inc. - July/August 2007 - I17
Engineering Inc. - July/August 2007 - I18
Engineering Inc. - July/August 2007 - I19
Engineering Inc. - July/August 2007 - I20
Engineering Inc. - July/August 2007 - I21
Engineering Inc. - July/August 2007 - I22
Engineering Inc. - July/August 2007 - I23
Engineering Inc. - July/August 2007 - I24
Engineering Inc. - July/August 2007 - 25
Engineering Inc. - July/August 2007 - 26
Engineering Inc. - July/August 2007 - 27
Engineering Inc. - July/August 2007 - Roadside Technology
Engineering Inc. - July/August 2007 - 29
Engineering Inc. - July/August 2007 - 30
Engineering Inc. - July/August 2007 - 31
Engineering Inc. - July/August 2007 - 2007 Convention Wrap-Up
Engineering Inc. - July/August 2007 - 33
Engineering Inc. - July/August 2007 - 34
Engineering Inc. - July/August 2007 - 35
Engineering Inc. - July/August 2007 - 2007-2008 Excom
Engineering Inc. - July/August 2007 - 37
Engineering Inc. - July/August 2007 - 2007 Fall Conference Primer
Engineering Inc. - July/August 2007 - 39
Engineering Inc. - July/August 2007 - Business Insights
Engineering Inc. - July/August 2007 - 41
Engineering Inc. - July/August 2007 - Technology
Engineering Inc. - July/August 2007 - Members in the News
Engineering Inc. - July/August 2007 - 44
Engineering Inc. - July/August 2007 - 45
Engineering Inc. - July/August 2007 - 46
Engineering Inc. - July/August 2007 - 47
Engineering Inc. - July/August 2007 - One on One
Engineering Inc. - July/August 2007 - Cover3
Engineering Inc. - July/August 2007 - Cover4
https://www.nxtbook.com/nxtbooks/acec/engineeringinc_spring2020
https://www.nxtbook.com/nxtbooks/acec/engineeringinc_winter2020
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1119
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0919
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0719
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0519
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0319
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0119
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1118
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0918
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0718
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0518
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0318
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0118
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1117
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0917
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0717
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0517
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0317
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0117
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1116
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0916
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0716
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0516
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0316
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0116
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1115
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0915
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0715
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0515
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0315
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0115
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1114
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0914
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0714
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0514
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0314
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0114
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1113
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0913
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0713
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0513
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0313
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0113
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1112
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0912
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0712
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0512
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0312
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0112
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1111
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0911
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0711
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0511
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0311
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0111
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1110
https://www.nxtbook.com/nxtbooks/acec/engineeringincSeptOct
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0910
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0710
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0510
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0310
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0110
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1109
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0909
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0709
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0309
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0109_v2
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0109
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1108
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0908
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0708
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0508
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0308
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0108
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1107
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0907
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0707
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0507
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0307
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0107
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0505
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0305
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1105
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0306
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0105
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1103
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0906
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0903
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0703
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0106
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0506
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0503
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0303
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0904
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1104
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0704
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0504
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0304
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0905
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0705
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0104
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1106
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0706
https://www.nxtbookmedia.com