Engineering Inc - July/August 2018 - 24

Some carriers have recently
stopped writing PLI for small
firms. Those carriers exiting the
market remain responsible for
claims filed under their policies,
but may not be able to give the
same level of service, according
to James Schwartz, U.S. A&E
focus group leader for Beazley.
RECOMMENDATIONS

Causes of Claims
48%

Third-Party Claim
42%

Error or Omission of a Technical Nature
38%

Communication
Client/Project Selection

23%

Contract

23%

ACEC's 2018 PLI survey
21%
Scope of Services
reflects stiff competition among
19%
Project Management
the PLI carriers; however, Jeff
Connelly, program manager for
23%
Other
the ACEC Business Insurance
Trust and a broker at Greyling
0%
10%
20%
30%
40%
50%
Insurance Brokerage, a division
of EPIC Insurance Brokers &
Consultants, counsels his clients
how they define professional services and claims.
not to shop every year. "You need
Schwartz believes that if there is a claim, a firm will be well
a strong, long-term relationship
protected. "Designers want to be with a carrier that will live up to
with your carrier so they will
that promise and can understand the intricacies of A/E claims."
continue to insure you even after
Jim Messmore, senior vice president at Hanson Professional
a claim or two," he says.
Services and former chair of the ACEC Risk Management Com"Financial stability and history
mittee, agrees. "Carriers consistently receive high marks for their
in the marketplace are important,
pre-claims and claims handling services," he says.
as is finding a carrier that can
Access to legal help and resolving issues early is good for everybe a business partner with a risk
body-the insurer, the engineering project and the client relationmanagement program that
ship, according to Matt Richards, executive vice president and
will make them be better
corporate secretary of Strand Associates, Inc., and former vice
businesspeople, and better
chair of the ACEC Risk Management Committee.
insureds, by lowering their risk
"Handling issues as they occur and before they morph into
profile," says Rabasca.
claims is a key to our 99.5 percent client satisfaction rate," says
Michael Welbel, president of
Tim Haener, president of J-U-B Engineers and a member of the
a/e ProNet and vice president of Risk Strategies Co., notes that
ACEC Risk Management Committee. "Our insurance carrier's
"Purchasing a PLI policy is really buying claims handling, and
loss prevention program plays an important role in that process."
you do not know until you have a claim how good that service
may be."
INDUSTRY GROWTH
Additionally, the PLI marketplace has been flooded by insurFirms employing good risk management practices may be much
ance carriers, and they are not all equal, according to Kathy
better positioned for growth, particularly if Congress succeeds
Blanchard, president of PLAN and senior vice president with
in enacting an infrastructure bill, according to Kevin Collins,
BB&T Insurance Services. She advises firms to focus on pollution
underwriting manager and senior vice president for Victor O.
protection, cyber risk and technology liability coverage. "All firms
Schinnerer & Co.
have network security and cyber exposures related to the data they
Collins, who is seeing both steady frequency and steady
work with, control or create," she says. Carriers may also vary in
severity in claims, advises maintaining the focus on good risk

Of the 442
Member Firms
that responded
to ACEC's
survey, 87
percent
renewed with
their existing
carrier last year

"You need a strong, long-term relationship with your
carrier so they will continue to insure you even after a
claim or two."
JEFF CONNELLY
GREYLING INSURANCE BROKERAGE/PROGRAM MANAGER,
ACEC BUSINESS INSURANCE TRUST

24

ENGINEERING INC.

JULY / AUGUST 2018
Table of Contents for the Digital Edition of Engineering Inc - July/August 2018
