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O P I N I O N
A s design firms look ahead to 2018, the time may be right to reassess their professional liability insurance limits. In recent months, design firm clients have been contractually requiring design firms to carry increasingly higher amounts of coverage. Policy quest As 2018 approaches, A/E firms may want to revisit professional liability insurance limits, and find optimal solutions for their requirements.
Rob Hughes GUEST SPEAKER
❚ ❚ Average project size. This is measured by an A/E firm’s fees and total construction value. The bigger the project, the bigger the potential claim (i.e., 10 aggregate was standard and most design firms had at least that amount of coverage in place.” “Historically, most design firm clients accepted whatever limits A/E firms carried or set relatively minimal amounts; $1 million per claim/
Historically, most design firm clients accepted whatever limits A/E firms carried or set relatively minimal amounts; $1 million per claim/aggregate was standard and most design firms had at least that amount of coverage in place. Yet, during 2017, more contracts require limits of $5 million to $10 million – not just for prime designers, but for the various sub-consultants as well. In prior years, when most design firms carried limits of $1 million or $2 million, they were based on such factors as: ❚ ❚ Total revenues and assets. Larger firms with great- er assets typically have more to insure and protect.
See ROB HUGHES, page 8
THE ZWEIG LETTER December 11, 2017, ISSUE 1227
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