From Risk to Profit Benchmarking and Claims Studies

The Project

Architects: Claims by Project Type (2010 - 2019)

No two projects are alike. Even if your practice is concentrated on one particular project type, such as schools, no two sites are alike, so the projects themselves will be different. After evaluating your client, it is important to evaluate the project. Some projects are riskier than others in terms of the frequency (reported claims) and severity (costs paid by CNA) of claims. For example, according to these charts, condos projects were a relatively high risk for architectural services, but these projects were a lower risk for mechanical, electrical, and plumbing engineers. Another factor to consider is the region in which a particular project is located. For example, in the East, West, and Midwest, schools/colleges projects represented the highest frequency of claims for larger firm architects, but in the South, condos had the highest frequency of claims within the same group. For more information on frequency and severity of claims for various projects in each region, refer to our benchmarking information and claims and case studies .

30%

25%

20%

15%

10%

5%

0%

Apartments Retail/

Healthcare Facilities

Houses/ Townhouses

Condos Schools/ Colleges

Office Bldgs/ Banks

Restaurants

Frequency = reported claims

Severity = CNA dollars spent

Engineers: Claims by Project Type (2010 - 2019)

12%

10%

8%

6%

4%

2%

0%

Apartments

Condos Schools/ Colleges

Highways

Office Bldgs/ Banks

Houses/ Townhouses

Land/Site Development

16 • From Risk to Profit - Benchmarking and Claims Studies

Victor

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