Your A/E Professional Liability Premium Increase?
Reasons your architecture/engineering firms Professional Liability premium may have increased-
There are several factors that go into determining what your firms Professional Liability renewal payment is for the renewal term. There are also several reasons your premium may have increased.
Your firm’s billings may have increased from last year’s policy period and that may be increasing your firm’s premium. This isn’t the only factor for a premium increase but it can be one of the major factors of an increase. Some insurance companies will look at averages of billings, so if your firm had one higher year or one lower year this can have an affect on your premium.
There may have been a change in your project types. There are project types that are considered more desirable by insurance companies, office buildings, and less desirable, condos. The changes in your firm’s project types may increase your premium.
Claims can cause an increase in your firm’s premium. The amount of the claim will play a factor in the amount of the increase in premium. If they claim is $2,000 it probably wont have much, if any, affect on the premium. However, if the claim is $200,000 this will increase your premium. Of course, this will depend on the size of your firm as well.
If there is a change in your project delivery methods this may also be a factor in the increased premium. If you always did design-bid-build and now are mostly doing turnkey, this may be the reason for the increase.
Areas that can help in lowering your premium are risk management procedures in place at your firm, using written contracts and attending risk management seminars. You may ask your insurance companies for other credits that may be available.
There are several reasons your Professional Liability premium may have increased. If you have questions please call or email your Professional Underwriters agent.