Schools/Colleges Project Claims
Both the claims frequency and severity for school projects seemed to be driven by problems with “delays and extras” and HVAC problems. Although mold-related claims were a component of the overall frequency, such claims were not significant components of either the number of claims brought or the resolution costs for those claims. The severity in certain years may have resulted from a building boom and less skilled constructors.
10% 15% 20% 25% 30% 35%
Frequency = reported claims Severity = CNA dollars spent
0% 5%
2015
2016
2017
2018
2019
Healthcare Facility Project Claims
The severity statistics for this project type were often driven by the coincidence of extremely large claims. This appears to be the situation in 2016 where large projects resulted in expensive claims. As with other institutional projects, mechanical systems were the biggest source of claims and a costly component of the severity of those claims. In frequency alone, roughly 30% of all claims during this period alleged negligence in HVAC design.
Frequency = reported claims Severity = CNA dollars spent
40%
30%
25%
15%
10%
0%
2015
2016
2017
2018
2019
Commercial and Retail Project Claims
Commercial and retail projects, ranging from banks to stores to office buildings, often are seen as having a good risk-to-reward ratio—the risk of loss is not disproportionate to the fees. But claims were quite common, and even though some did not result in indemnity payments, they did consume time and defense costs. Economic loss claims, often from delayed openings, added to the severity problem. Losses were often related to interior construction, HVAC problems, and building superstructure.
10% 15% 20% 25% 30% 35%
Frequency = reported claims Severity = CNA dollars spent
0% 5%
2015
2016
2017
2018
2019
11 • From Risk to Profit - Benchmarking and Claims Studies
Victor
Made with FlippingBook Publishing Software