2016 NSPE/ACEC/AIA-AIA Trust Professional Liability Insurance Survey of Carriers. VP Designers & Contractors Professional Liability

Transcription

1 #2 COMPLETE Collector: Web Link 1 (Web Link) Started: Tuesday, July 05, :38:16 AM Last Modified: Tuesday, July 05, :51:00 AM Time Spent: 01:12:44 IP Address: PAGE 1: GENERAL INFORMATION Q1: Please provide us with your firm's contact information. Your Name Title Company Mailing Address City State Valerie Onderka VP Designers & Contractors Professional Liability Ironshore 75 Federal Street Boston Zip Massachusetts Telephone Website Valerie.Onderka@Ironshore.com Ironshore.com Q2: Are you a(n): Insurer? Q3: How many continuous years has your firm provided professional liability insurance to the A/E marketplace? 8 Years Q4: If your firm is not the insurer with which your firm previously been associated over the past decade, what has been the duration of your current association? N/A Q5: What was your total number of insured firms from engineering and architectural liability insurance in the following years? (Check one for each year) Total # of Firms (500-2,000) 2015 Q6: What was your total premium from engineering and architectural liability insurance in the following years? (Check one for each year) Total Premium in Millions (0-25m) 2015 Q7: What percentage of your total book of A/E premium comes from firms with revenue of: Less than $500,000 10% $500,000 to $5,000,000 85% More than $5,000,000 5% 1 / 11

2 Q8: Are you trying to gain, maintain, or decrease market share in the next two years in certain market segments? Gain Q9: What have been your carrier's A.M. Best's Rating and financial size category for the following years? (Please use year-end results, but use July for the current year). Best's Rating Financial Size Category 2016 A (Excellent) XIV (1,500 to 2,000) 2015 A (Excellent) XIV (1,500 to 2,000) 2014 A (Excellent) XIV (1,500 to 2,000) 2013 A (Excellent) XIV (1,500 to 2,000) Q10: Do you have coverage exclusions and/or underwriting restrictions: Residential and Condos Schools Geotechnical Services Other (please specify) Q11: Are there particular exposures for A/E professionals that may lead to higher rate increases than in recent years? Exclude mines, amusement parks, off shore oil rigs Q12: Do you provide multi-year policies?, If yes, please explain the general criteria you apply to such policies: We write Project Specific Polices with a combined coverge of construction and ERP not to exceed 10 years. Q13: What limits of A/E professional liability coverage are available through your company? Minimum $ 1 Million Maximum $ 15 Milliion Q14: Are these annual aggregate limits? Q15: Do you offer "split limits"? Q16: What is the insurer's net retention on the A/E professional liability program? $5,000 Q17: Please explain any restrictions you have on Prior Acts Coverage: Will not provide retroactive coverage without proof of continous prior coverage. Q18: When did your company most recently update its A/E professional liability policy? Q19: Do you consult or obtain feedback from user groups or professional societies prior to making policy and/or rate changes? Within the past 1-3 years 2 / 11

3 Q20: How many non-managerial, full-time A/E underwriters do you have supporting your PLI program? Q21: On average, how many years of experience do your non-managerial, full-time A/E professional liability underwriters have? Five (5) Seven (7) Q22: In addition to writing professional liability insurance, does your company write Property and Liability Insurance for engineering firms? Q23: What is the minimum premium for your Practice Policy? $5,000 Q24: Do you offer PL coverage to construction contractors? Q25: As part of your PL programs, do you offer Contractors Professional Liability coverage? Q26: Does your policy cover product liability for the A/E's design of products manufactured and sold by third parties?, If yes, what % of your book is contractor PL versus A/E? 25% and growing. Q27: Does your firm offer D&O coverage? Q28: Does your firm offer Design Build coverage? Q29: How do you handle requests for extended reporting? ERP is articulated in the policy and depending on circumstances, may be handled per the underwriters discretion. Q30: What options do you have for firms that require extended reporting? Options are offered up to five years maximum. PAGE 2: COVERAGE Q31: For each state/jurisdiction, do you offer coverage on an: Alabama Alaska Arizona Arkansas California Colorado Connecticut 3 / 11

4 Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York rth Carolina rth Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina 4 / 11

5 South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Guam rthern Marianas Islands Puerto Rico U.S. Virgin Islands International Q32: Describe the circumstances when your surplus lines carrier is used vs. your licensed carrier. N/A Q33: Is your policy form: (select only one) indemnify basis? PAGE 3: DEDUCTIBLES Q34: Does your company have underwriting guidelines or restrictions on deductibles based on firm size? Q35: Does your deductible apply to damages only, or to a combination of defense costs and damages? Defense costs and damages Q36: Do you ever offer First Dollar Defense? Q37: Do you offer stop-loss on deductibles (i.e., a maximum deductible limit option for all claims in the aggregate)? PAGE 4: PREMIUMS Q38: How have your rates increased or decreased over the past three years? %-5% Increase %-5% Increase %-5% Increase 5 / 11

6 Q39: How do you expect your rates to change going forward? %-5% Increase %-5% Increase Q40: Do you offer a premium credit for membership in a professional society and/or trade association (e.g., NSPE, ACEC, or AIA)? Q41: Do you offer credits or other financial incentives for: Educational programs completed by an insured?, Risk management programs?, Peer reviews?, Risk assessments?, Other financial incentives:, Please specify: Use of industry Standard Contracts; Use of Contractcts with a Limitation of Liability Q42: Rank the following characteristics from 1 (highest) to 8 (least) in your premium determination process. If a characteristic is not considered in the premium determination process, leave it blank. Location of firm 2 Location of projects 8 Type of practice 3 Type of projects 4 Annual billings 1 Claims history 6 Firm experience 5 Other 7 Q43: If you included "Other" as one of the characteristics for the previous question, please explain: Risk Management Programs and considerations. PAGE 5: PROJECT INSURANCE Q44: Do you offer project-specific insurance? If your answer is "," please continue to the next section (Section 6) on Claims Process. Q45: Do you offer project insurance on a "stand alone basis" (regardless of whether the project policy's first named insured has a practice policy)? Q46: Do you offer project specific excess or other supplemental additional limits to your "practice policy insureds" by endorsement? 6 / 11

7 Q47: If your answer to the previous question was "," please provide the number of such policies your company wrote in its most recently completed fiscal year and your maximum limits. If you answered "," please continue to the next question. Number of policies 60 Maximum limits $15 Million Q48: Are your project policies "primary" or "excess" coverage for the A/E firm? Primary Q49: Please state the number of project policies your company wrote in its most recently completed fiscal year and provide your maximum limits. Number of policies 20 Maximum limits $15 Million PAGE 6: CLAIMS PROCESS Q50: How does your company define a claim? Claim means any demand received by an Insured alleging a Wrongful Act on the part of the Insured or persons for whose conduct the insured is legally liable. Q51: Is "circumstance" reporting allowed?, If yes, please comment: If the Insured first becomes aware during the Policy Period of an actual or alleged Wrongful Act or circumstance that reasonably could give rise to a Claim under this policy, the Insured may give written notice to the Company containing all of the information below. If such written notice is received by the Company prior to the end of the Policy Period, then any Claim subsequently made against the Insured arising out of the same Wrongful Act or circumstance shall be deemed to have been first made during the Policy Period. Q52: Is "circumstance" reporting required?, If yes, please comment: However, if not reported, there will be no relation back should the circumstance turn into a claim. Q53: If a "circumstance" has been reported, do you recognize the claim as covered by the policy in force at that time? Q54: Who supervises claims for your company? In-house Director of Claims and Risk Management and an independent TPA Q55: What assistance do you offer your insureds with potential claims? Pre-claims assistance based upon premium size 7 / 11

8 Q56: Does your pre-claims assistance include availability of panel counsel with A/E defense expertise? Q57: Are there any costs caps or other restrictions on your pre-claims assistance?, If yes, please comment: Ironshore has dedicated approved risk management counsel and approved panel counsel for defense., If yes, please comment: Guidelines are based upon premium size. Q58: Do you have claim offices that manage claims?, If "," please provide the locations of your claims offices by city and state. If "," please indicate how your company manages claims. New York, NY and Boston, MA Q59: What is the total number of your staff devoted exclusively to A/E professional liability claims? Q60: On average, how many years of A/E professional liability claims experience do the staffers in the previous question have? Q61: Do you conduct any type of follow-up evaluation after the claim is closed out to determine the insureds' satisfaction with your claims handling process? Q62: Do you do independent surveys of insureds regarding their level of satisfaction with your services? (If yes, please a sample of that survey to legal@nspe.org or fax it to NSPE Legal Department at (703) Q63: Does your policy cover claims brought outside the U.S., its territories, and Canada? Q64: If your policy cover claims brought outside the U.S., its territories, and Canada, does the insured have the right to select legal counsel? 2 25 PAGE 7: LITIGATION AND SETTLEMENT Q65: Does your policy provide for payment of defense costs in addition to the limit of liability either in the standard form or by endorsement? Q66: What is your company's practice regarding issuing a "reservation of rights" letter? The coverage letter that is sent depends on the information that is received at the time the claim is noticed to the company. A reservation may be made for items not originally reported. 8 / 11

9 Q67: Does your company offer mediation or other Alternate Dispute Resolution credit? Q68: If the answer to the previous question is "," are there any restrictions to receiving the credit? Q69: Do you reserve the right to appoint defense counsel on all claims? Q70: Do you accept alternate defense counsel when requested by insured? Q71: Do you review the strategic and tactical decisions of defense counsel assigned to defend an insured, such as by requiring assigned defense counsel to obtain the approval of depositions that defense counsel deems necessary? Q72: Do you have to obtain the consent of the insured to compromise on or settle a claim? Q73: If the insured elects to contest the claim rather than accept a settlement, do you then limit your subsequent liability for the claim to the amount that the claim could have been settled for ("Hammer Clause")?, If "," what is the credit amount? If the Insured and the Company jointly agree to utilize Mediation as a means to try to resolve a Claim made against the Insured, and if such Claim is fully and finally resolved through the use of Mediation, then the Insured s Retention for such Claim shall be fifty percent (50%) of the amount of the Retention shown in Item 4. of the Declarations applicable to such Claim, subject to a maximum reduction of twenty thousand dollars ($20,000) for such Claim. The Company shall reimburse the Insured for any applicable Retention payment made in excess of such reduced Retention, as soon as practicable, after the final resolution of the Claim., If "," please explain the restrictions. If the Insured and the Company jointly agree to utilize Mediation as a means to try to resolve a Claim made against the Insured, and if such Claim is fully and finally resolved through the use of Mediation, then the Insured s Retention for such Claim shall be fifty percent (50%) of the amount of the Retention shown in Item 4. of the Declarations applicable to such Claim, subject to a maximum reduction of twenty thousand dollars ($20,000) for such Claim. The Company shall reimburse the Insured for any applicable Retention payment made in excess of such reduced Retention, as soon as practicable, after the final resolution of the Claim., If yes, please specify any conditions: All alternative defense counsel is vetted by the company for experience and rate structure. In addition all defense counsel must agree to abide by defense counsel reporting guidelines. 9 / 11

10 Q74: Does insured have to obtain the consent of the insurer to compromise on or settle a claim? Q75: Do you engage outside agencies to review defense counsel's billings? Q76: Does your company provide the following risk management services and products for your insureds? Contract review Publications Seminars Q77: Does your company provide any other risk management programs for your insureds? Q78: Provide the names of the primary contact for your company's risk management personnel. First name Donna Last name Hunt Q79: How many A/E risk management seminars does your company conduct annually? Q80: What is the estimated number of A/E contracts your company reviews annually? Q81: Who performs these contract reviews? Dedicated regional risk management attorneys Q82: What is the average turnaround time for these contract reviews? 2 business days Q83: Please list the number and types of A/E risk management publications offered by your company. Please also provide a sample of your latest publication, preferably in an electronic format to legal@nspe.org or fax it to NSPE Legal Department (703) N/A Q84: Please provide the estimated percentage of claims driven by the following factors. Omit the % sign. Technical errors 15 Project management (including contractural terms) 15 Poor communication 50 Poor documentation 20 Q85: Please provide the estimated percentage of claims related to the following types of projects. Omit the % sign. Commercial 10 Single-family residential 10 Multi-family residential/condos 35 Schools/universities 10 Industrial 10 Health care 5 Transportation 20 Master planning 0 Surveys/studies 0 10 / 11

11 Q86: Estimate your portfolio turnover: % of new business 50 % of renewal business 75 Q87: Does your company provide any other lines of insurance to DP's? PAGE 8: ADDITIONAL SERVICES Q88: Where can the following special services be obtained if offered by your company? (Please mark all that apply). Insurance needs assessment Application paperwork and assistance Explanation of coverage Help with loss prevention programs Review of contracts Assistance with incidents and claims Educational programs/seminars Publications Agent/Broker, Underwriter Agent/Broker, Underwriter Agent/Broker Agent/Broker, Underwriter, Attorney Attorney Claims Dept. Underwriter, Attorney t Offered Q89: Will you provide a specimen copy of your policy?. (Please send a.pdf sample of your policy to legal@nspe.org, or fax to NSPE Legal Department (703) PAGE 9: COMMENTS Q90: If you wish to provide any comments or suggestions on this survey, please do so in the space below. Questions 5 and 6 did not allow for making the proper selections for each year. PAGE 10: FACE-TO-FACE INTERVIEWS Q91: If your company is interested in taking part in the October interviews, please re-confirm whether you would prefer a morning or an afternoon time slot., I am willing to participate in the face-to-face interviews on 9/29/16 (Thursday) in Chicago. preference 11 / 11