Understanding Underwriting to Get a Good Deal. RLI Design Professionals Design Professionals Learning Event DPLE 134 May 4, 2016

Transcription

1 Understanding Underwriting to Get a Good Deal RLI Design Professionals Design Professionals Learning Event DPLE 134 May 4, 2016

2 RLI Design Professionals is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-aia members are available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

3 Copyright Materials This presentation is protected by US and International Copyright laws. Reproduction, distribution, display and use of the presentation without written permission of the speaker is prohibited. RLI Design Professionals

4 Your Underwriting Panel Vince Costello Vince is the Program Manager for RLI s Design Professionals program. He oversees the RLI architects and engineer (A&E) underwriting teams across the country. Vince joined RLI Professional Services Group in 2009 as the East coast Regional Underwriting Manager for Design Professionals. Prior to joining RLI, Vince was an underwriter in the A&E program at ACE. He first started his insurance career as a broker with Aon. Vince earned his degree in marketing management from Holy Family University.

5 Your Underwriting Panel Laura Malloy Laura is the Assistant Program Manager for RLI s Design Professionals program. She joined RLI Professional Services Group in January of 2011 as part of RLI s internship program. Laura earned her degree in Mathematics from The College of New Jersey. Laura additionally holds Chartered Property Casualty Underwriter (CPCU) and Registered Professional Liability Underwriter (RPLU) designations.

6 Course Description Completing insurance applications may not be a task you relish; call it a necessary evil if you like. But consider this with over 50 insurers offering insurance coverage to design professionals, it s in ourbest interests to be competitive enough to write the risks that we see as desirable. So when do the credits outweigh the debits in our underwriting process? You may be surprised at some of the answers.

7 Learning Objectives Participants will: Consider the value of a holistic insurance solution; Review the importance of sound financial management in the underwriting process; and Learn how to evidence better quality control and continuing education; Examine other underwriting factors such as staff evaluation and retention.

8 Tip #1 Make Sure Your Underwriter Understands Your Business and Your Credentials

9 Underwriting Criteria Application(s) Resumes or Curriculum Vitae Description of Projects and Services Credentials and Designations Other Information Online Risk Management Website Loss Runs 3 or 5 Years Other Insurance Information

10 Specific Considerations Increased Exposure X Responsibilities for Construction X Environmental Remediation X Product Design, Fabrication, or Manufacturing X Real Estate Development We re not telling you what to do

11 Specific Considerations Increased Exposure X Software Development X Coastal Locations X Foreign Offices X Diving/Bridge Inspection we re just telling you how we see it

12 Specific Considerations Increased Exposure X Aircraft X Mining X Roofing Consulting X History includes Loss(es) and that engaging in one of these will likely increase your premium if we can provide you with a quote at all

13 Tip #2 Discuss the Underwriting Process with Your Broker

14 Professional Liability Considerations Favorable for Underwriting Demonstrate Relevant Experience Integrate New Hires Establish Financial Strength Perform Go/No Go Analyses

15 Professional Liability Considerations Favorable for Underwriting Develop Written Contracts Reviewed by Counsel Maintain Clear Communication Protocols Follow QA/QC Procedures Require Systematic Recordkeeping (and Audit)

16 Professional Liability Considerations Favorable for Underwriting Leadership Both the Firm & Projects Provide Ongoing Training Mentor Review Lessons Learned Plan Strategically

17 Professional Liability Considerations Unfavorable for Underwriting XFollow Quickly All the Hot Markets and Trends XDon t Evidence Discretion in Project Selection XMaintain High Staff Turnover XShow Poor Financial Aptitude by: Inability to Pay Deductibles Cancellation for Non-Payment of Premium

18 Professional Liability Considerations Unfavorable for Underwriting X Start New Projects on a Handshake X Make Decisions by Phone or in a Meeting with No Evidence of Agreement X Have No Formal Quality Program X Proceed without Written Approval

19 Property & Casualty Considerations Favorable for Underwriting Written and Tested Business Continuity Plan Inventory Control System in Place Key Site Employees have Taken OSHA 10-Hour Safety Course Return to Work Program Written Policies and Procedures for Auto Safety: Seat Belt Use Policy / Driver Agreements Crash Reporting and Investigation Procedures Vehicle Maintenance and Inspection Followed Reward/Incentive Program

20 Property & Casualty Considerations Unfavorable for Underwriting X No Screening Process for Company Drivers X No Company Cell Phone Policy in Place X Inappropriate Data Backup Procedures X Coastal Location with History of Windstorms X Installation Responsibilities on FF&E X No Centralized Risk Management/Loss Control

21 Tip #3 Complete the Application in Detail

22 Some Steps to Improve the Outcome Examine the Entire Application Review Prior Applications Organize Your Information Answer Clearly and Succinctly Complete All Required Questions

23 Tip #4 Understand the Underwriter s Questions

24 Your Website vs. Your Application 15. Subcontracting/Subconsulting: Provide the percentage of your firm s GROSS FEES that were paid to subconsultants and subcontractors during the last complete year. % of Gross Fees % of Gross Fees Total Subcontractors 0% Total Subconsultants 0% Drilling 0% Environmental Services 0% Other 0% Structural Engineering 0% Other Professional Services 0% Meet XYZ Engineering s Subcontractor of the Month!

25 How Our Research Helps You Accreditations Experience Awards

26 The Value of

27 Tip #5 Understand the Insurer s Philosophy

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29 Value to Our Insureds Strong Collaboration Between Broker and Insurer Fewer Coverage Gaps or Overlaps Multi-Policy Discounts Free Targeted Continuing Education Programs Additional Discounts for Participating in CE

30 This concludes The American Institute of Architects Continuing Education Systems Program Alayne McDonald, Professional Development Coordinator Barbara Sable, Assistant Vice President