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:

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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.