Here’s a summary of a good article from RLI, on how to determine if your liability limits are adequate.
In the article they discusses several things to keep in mind:
- The state the claim occurs in can have a major impact
- The type of damages (ie a loss of life claim will be orders of magnitude higher)
- The chosen dispute resolution method
- The tenacity of the claimant
- Other insurance available
They go on to discuss adequacy, and some items to consider:
- Contractual requirements
- Peer Analysis
- Severity of claims
- Managing subconsultants
They then detail some of the tools available to address all these concerns:
- Split Limits
- Project-Specific Endorsements
- Specific Job Excess
- Specific Project Excess
- Project Specific, but blanket Excess
- Specific Additional Limits Endorsement
- Specific Client Excess
- Practice Excess Policies
- Project Specific Excess Policies
- Project Specific Excess Policies
- Owners Protective Professional Liability
The article finishes up by suggesting that a good broker will help you:
- synthesize all of your data—like firm size, discipline(s), project type(s), and geographic region(s);
- suggest a range of policy limits to consider;
- procure options from appropriate resources; and
- present those options with a pro-con analysis that helps you make a well-reasoned choice.
These are all things we’re here to help you with, and all the tools she mentioned (and more) are things in our toolkit available to help you craft a unique policy for your design professional clients.
Click here for the complete article and Call Us today to discuss your design professional insurance needs:
(317) 570-6945
About PDI
PDI is an Indianapolis-based wholesale brokerage firm with a national network that includes thousands of insurance agents, brokers, architects, engineers and contractors in all 50 states. Since PDI’s beginning in 1980, we’ve handled a single line of coverage: errors & omissions (E&O) for design professionals. Contact Us today for a review of your design client's insurance program.
