REPORT

Minimize Risk - Maximize Performance
June 2012

www.smartrisk.biz

 Mailing List Link:

Join Our Mailing List

Link to Forward Newsletter:

Forward Newsletter  

View Past Newsletters:


Archive Newsletters
Link


LiveSurveys 

Take 2 minutes and complete these 10 question radio button surveys. Results will be provided in a future newsletters,  articles and industry training sessions. 


Economics Impacting A/E's


Current Responses:
 
   81%: Difficulty Getting Paid  
   20%
: Freezing All Salaries
   28%: Cutting Expenses
   28%: Not Obtaining Proper   Fees 


Economic Survey Link



Green Project Survey


Current Responses:


90%: Increase Next Year
50%:
5 Projects Annually
    33%: Green Revenue >20%
22%:
Return on Investment 
        Biggest Risk 
18%: Commercial/Office Projects
  
  

Green Survey Link



Survey Reports 


 *A/E Law Firm Survey*

 Detailed survey of 20 A/E Law Firms across the United States providing regional and national perspectives on legal developments, claims and root causes driven by economic conditions with loss prevention recommendations and other insights from these legal experts.  


A/E Law Firm Survey Report Link



*A/E Survey Report*
Insightful survey report of A/E firms and how economic conditions are impacting business opportunities and affecting business decisions today.  

A/E Firms Survey Report Link


*A/E Insurance Carriers
Survey Report"

Survey of 17 insurance carriers specializing in A/E Professional Liability (PL) insurance identifies current economic risk factors
, services offerings, claim trends and recommendations for reducing liability exposures.  

PL Insurance Carrier Report
Link

Quick Links Section

Insurance, Risk or Professional Liability (PL) Question?   

Ask SmartRisk


Introduction:
This article addresses how an A/E insurance agent used SmartRisk's SR Risk Assessment for clients with claims to improve their insurance position. 





Options When A/E’s Have Claims

 

Pamela S. Adams, CIC, CRM, CPCU



 

As an insurance broker that specializes in providing protection to design professionals, it’s rare that I work with a firm that does not have some type of Professional Liability (PL) claim against them in the recent past.  Many of my clients have more than one claim pending, primarily due to the fact that A/E firms are sought after in this tough economy, and are often viewed as the deep pocket and their PL policy a recovery asset.

 

For firms with claims, insurance options change dramatically with significant increases in premium and fewer carriers willing to offer terms. To make matters worse, many A/E firms have seen a drastic reduction in their annual revenue, making reducing operational expenditures a priority. 

 

These are challenging situations for both the firm and broker, and you explore insurance options for your client by explaining the situation to underwriters in an effort to obtain the best possible terms. However, you are limited based on carriers’ underwriting appetite and strategy leaving few options.  In many cases the current carrier is the only one willing to offers terms, typically at a significant increase in premium with a higher deductible.

 

In order to find additional options for our clients with a claim history, we searched for an independent method of evaluating risk management practices including methods for minimizing future risk – and found SmartRisk, a risk and performance management consultancy for design and building professionals.  SmartRisk conducts SR Risk Assessments evaluating risk and liability exposures at the operational level. The process is comprehensive analyzing business practices, operations and risk management strategies, and includes interviews with Principals and key personnel.

 

Firms receive a personalized SR Risk Assessment Report with associated risk-ratings (low-moderate-high) by category developing the firm’s overall SR Risk-Rating. The report is then reviewed identifying program strengths, areas of possible concern, and firm specific recommendations based on best practices for mitigating risk and liability exposure.

 

One A/E client with recent claims was declined coverage by several carriers. An SR Risk Assessment was performed with their professional liability (PL) insurance renewal approaching.  Carriers that previously declined offering terms were now interested.  Premiums received were 10% - 25% below the firm’s expiring premium, creating a significant savings for the firm. One carrier also offered a $5,000 credit that could be used to support future risk management efforts. 

 

A/E firms and brokers, you do have options if there have been claims. In addition to the application and loss runs, a risk assessment is a valuable tool that tells a more in-depth story that helps lower insurance costs. Insurance carriers support an independent analysis and are willing to offer better terms and insurance premiums, including cost-sharing and premiums credits for firms participating in the risk assessment. It increases insurance options for my clients and I strongly support and recommend its use.

 

Thank you,  


Pamela S. Adams, CIC, CRM, CPCU

ISU Insurance Services of Colorado, Inc.

Denver, CO

www.isuinsurance.com






You are welcome to forward this newsletter to others who may be interested.


Thank you.


Feedback or Comment?  Comment Link


SmartRisk
 

Our objective is improve performance and profitability through industry and risk analysis and developing costs effective solutions for design and building professionals. 

As an advocate for the industry, our services are designed to meet the unique challenges of the industry today; enhancing business performance through improved risk management strategies. We collaborate developing customized solutions resulting in reduced risk, strengthen performance, profitability and lower insurance costs.

Please feel free to contact us with any questions.
 
Timothy J. Corbett, BSRM, MSM, LEED GA
President
tcorbett@smartrisk.biz

www.smartrisk.biz
 
T: 626-665-8150

Copyright and Information Only. This newsletter is for information purposes only and should not be construed nor relied upon as guidance, regulatory or legal advice. Readers should consult with appropriate counsel regarding their specific situations and circumstances. 

If you would like to be removed from the SmartRisk Report mailing list, please use the link below.   

T: 626-665-8150
Email:
info@smartrisk.biz
www.smartrisk.biz