What can affect your architecture/engineering firms Professional Liability premium?
There are several factors that go into determining a premium for your design firm. The information provide on the renewal application, your firm’s claims history, website information, brochure and resumes will assist to determine the premium.
The renewal application is the largest piece of information the insurance companies have to determine your firm’s premium. The application includes the billings your firm has had in the past, present and future. Project types are included, your firms discipline, client types, risk management that your firm completes and prior insurance. Furthermore, if your firm has condo projects, the insurance company may ask for more detailed information on the projects. The application in full will help to determine the insurance premium.
Claims history is also a part of the information that is used to determine a premium. If your firm doesn’t have claims or has pre-claims this will not have an effect on the premium. If your firm does have a claim the insurance company will determine how that may or may not change the premium. Some insurance companies will look back five years on claims history and some will look back ten years. The look back period may also be based on the size of your firm. The insurance company may ask for detailed information on the claim and lessons learned, these will be helpful if your firm does have claims.
Website, brochures and resumes will also be a factor in determining premium. While many of these resources may be used as marketing material the insurance companies review these items to determine if the application matches what is on the marketing materials. If may not be a full determining factor in the premium but it certainly does play a part.
If there are any questions with regards to premiums on your Professional Liability policy premium please call or email your Professional Underwriters agent for assistance.