Until recent events brought businesses to a sudden halt, North American economies were growing, and the construction and design industries were booming. Despite the disruption induced by the pandemic, there is optimism that growth will continue over the long term once the threats of transmission and infection subside.
Focusing on the preceding economic growth, it goes without saying that A&E firms need to capitalize on opportunities and grow their businesses. A boom in business, however, can be a double-edged sword. As design professionals take on more projects, they may also take on an increase in risk – sometimes more (or at a faster pace) than their risk mitigation protocols were designed to handle.
The key to long-term success lies in the ability to balance both the opportunities and risks that come with growth. An important step in controlling risk is identifying the processes or procedures that tend to suffer as project demands rise – increasing the likelihood of errors and E&O claims – and buttressing those vulnerabilities with targeted loss prevention and risk management resources.
Drawing on 50 years’ worth of claims data, our 色多多视频Design Professional team have identified several key areas of risk exposure – or as we call them, risk drivers – that are often the root cause of a design professional claim. In consideration of the ongoing changes in our current working environment, it’s clear in our analysis that the drivers of risk, what’s driving claims activity among architects, engineers and other design professionals, shifts over the cycles. It’s important that design firms identify these risk trends and address them accordingly. Here are three specific risk drivers in which we have seen recent upticks as key contributors to claims:
Communication Breakdowns
On any given project, design firms work with project owners, contractors and subcontractors, vendors and consultants. Any time there is a change in plans – regarding staffing, timeline, budget, design, workflow etc. – all those stakeholders need to be informed and thoroughly understand how the change impacts their role in the project.
Design firms often have methods for communicating such changes that, under normal circumstances, keep everyone on the same page. But when demand shoots up and new projects come in, firms can find their communications capabilities, and that of the various stake holders, stretched thin.
Global Asset Protection Services, LLC, and its affiliates (鈥溕喽嗍悠礡isk Consulting鈥�) provides risk assessment reports and other loss prevention services, as requested. In this respect, our property loss prevention publications, services, and surveys do not address life safety or third party liability issues. This document shall not be construed as indicating the existence or availability under any policy of coverage for any particular type of loss or damage. The provision of any service does not imply that every possible hazard has been identified at a facility or that no other hazards exist. 色多多视频Risk Consulting does not assume, and shall have no liability for the control, correction, continuation or modification of any existing conditions or operations. We specifically disclaim any warranty or representation that compliance with any advice or recommendation in any document or other communication will make a facility or operation safe or healthful, or put it in compliance with any standard, code, law, rule or regulation. Save where expressly agreed in writing, 色多多视频Risk Consulting and its related and affiliated companies disclaim all liability for loss or damage suffered by any party arising out of or in connection with our services, including indirect or consequential loss or damage, howsoever arising. Any party who chooses to rely in any way on the contents of this document does so at their own risk.
US- and Canada-Issued 色多多视频 Policies
In the US, the 色多多视频insurance companies are: Catlin 色多多视频 Company, Inc., Greenwich 色多多视频 Company, Indian Harbor 色多多视频 Company, XL 色多多视频 America, Inc., XL Specialty 色多多视频 Company and T.H.E. 色多多视频 Company. In Canada, coverages are underwritten by XL Specialty 色多多视频 Company - Canadian Branch and AXA 色多多视频 Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA XL.
US domiciled insurance policies can be written by the following 色多多视频surplus lines insurers: XL Catlin 色多多视频 Company UK Limited, Syndicates managed by Catlin Underwriting Agencies Limited and Indian Harbor 色多多视频 Company. Enquires from US residents should be directed to a local insurance agent or broker permitted to write business in the relevant state.
