Why are some project types higher risks than others for design professionals?
There are project types that are considered a better risk than other types of projects, here are some of the reasons why.
Condo projects, as we know, are a high risk project type. The reason that it a high risk project type is because of the number of claims and the severity of the claims associated with this project type. Claims from condo projects are typically not limited to one condo, it is all of the condos that have a construction issue and the HOA’s are looking out for their condo unit owners and want to make sure the issues are fixed.
Residential projects are also overall a higher risk project. The reason being is that a house or townhome is very personal to a homeowner and more commonly have claims that come about.
Commercial projects, such as manufacturing facilities or office space are considered a lower risk project. These types of projects are typically built by developers who are very familiar with the construction industry and process and therefore do not file claims as often.
Projects such as bridges and parking structures are considered higher risk. Mainly because the structure of these types of projects is vitally important and when there is a claim they tend to be a severe claim.
Schools and colleges are not as high of risk project type. There is not a frequency of claims with these types of projects. The project owners would rather have a fix to the project rather than filing a claim.
If you have questions about project types and how it might affect your insurance be sure to call or email your Professional Underwriter agent.