- By Olivia Overman | August 2, 2021 Prior to the coronavirus pandemic, the professional liability market was firming across most lines of business due to loss severity. Over the past 18 months, as…, 1) Understanding the state of the market., “Agents need to be aware that the commercial market is very fluid right now,” Whitney says. “They need to stay up to date with which carriers are restricting terms and conditions, capacity, and…, 2) Looking toward a new normal., As the world opens up, there are likely to be changes in almost every market brought about by the events of the last year. “We are likely to see many services providers adopting a virtual model,…, 3) Obtaining the best outcome for clients and agents. , A firmer market requires agents to pre-plan to get the best coverage for their clients. Providing accurate and detailed information to underwriters is key. “Agents should give themselves plenty of…, Independent Agent, 3 Tips to Secure Specialized Professional Liability Coverage By Olivia Overman Reprinted with permission from the August 2021 Issue of Independent Agent Magazine © 2021 Independent Agent Magazine.…
- Albany, N.Y. (July 21, 2021) –, Walter J. Adams, Jr., vice president and assistant claims manager at Berkley Alliance Managers, a Berkley Company, will discuss ways to , Get Ahead of the Claim: Professional Liability in a Post-COVID-19 World, at the CLM 2021 Annual Conference to be held at the Atlanta Marriott Marquis in Atlanta, Georgia. During the roundtable discussion scheduled for Thursday, August 12 th at 2:00 p.m. EST, Adams will…, About Berkley Alliance Managers, Berkley Alliance Managers is an alliance of specialty professional liability insurance underwriters and is a member company of Berkley, whose rated insurance company members are assigned A+ (Superior…
- By Andrew D. Mendelson | July 12, 2021 The consequences are undeniable. Global climate change has affected everything from the design and building of roads, bridges, homes and office complexes to…, Resilient design strategies, Resilient design and construction is intended to maintain the ongoing operation of key infrastructure, systems and facilities during and after severe weather events, and restore the capacity to…, Standard of care issues, How has climate change affected the standard of care of construction projects? What is the potential culpability of designers and contractors? What exposures accompany the compliance or non-…, Anticipate code and practice standard upgrades., Engage with professional associations to understand future trends. Stay informed with the latest climatology models, reports and studies to guide project criteria and site designs., Think long-term durability and safety., Recommend to project owners the establishment of design criteria with protocols not yet memorialized in building codes to address the likelihood of increased severe storm events and excessive wind,…, Document everything., Document owner directives, especially the ones that decline the added resilient design criteria you have recommended., Disclaim third-party reliance., To some degree, this can mitigate risk based on the decisions and directives of clients who would rather design to code minimums than to the enhanced levels recommended by design professionals. There…, About the Author, Andrew D. Mendelson is senior vice president, chief risk management officer, at Berkley Design Professional, a W.R. Berkley Corp. company. He has more than four decades of experience as a licensed…, DOWNLOAD PDF, Read article in, Business Insurance, Reprinted with permission from the July Issue of, Business Insurance Magazine, © 2021, Business Insurance Magazine, . All rights reserved.
- Contractors should work with their agent or broker to be sure they make an informed decision on whether or not to buy, By Edward L. Sheiffele Jr. According to the NAICS Association, there are approximately 1.3 million contractors with annual revenues of less than $5 million in the United States. While virtually…, The risks, Pollution risk exploded in the 1960s and 1970s with the passage of several broad federal statutes and the creation of the Environmental Protection Agency (EPA). When you add climate change to the…, The coverages, In addition to the professional/pollution liability exposure that is addressed in a contractor’s professional and pollution policy, some contractors professional/pollution policies also offer first…, The author, Edward L. Sheiffele Jr. is executive vice president at Berkley Construction Professional, a Berkley Company. Sheiffele has more than two decades of insurance industry experience acquired within the…, Rough Notes, Reprinted with permission from the April Issue of, Rough Notes, © 2021 All Rights Reserved.
- February 16, 2021 Being a general contractor is challenging. They enter into contracts with project owners to deliver finished projects in accordance with the plans and specifications within the…, BEST PRACTICES TO REDUCE THE RISK OF FAULTY WORKMANSHIP, There are a number of best practices general contractors can adopt to reduce the risk of faulty workmanship impacting their projects. Naturally, preventing faulty workmanship from occurring is…, Prequalify subcontractors., Confirm that the subcontractors selected for the project are reputable, have extensive experience with the scope of work and have the financial health to deliver on their contractual obligations.…, Don’t skimp, . Obtain multiple bids from multiple subcontractors so as to verify the viability of an unusually low bid., Ensure that subcontractors understand the plans and specifications., Thoroughly vet the plans and specifications with the subcontractor before the work begins to: identify ambiguities in the specifications; seek clarification from the designer regarding…, Execute robust quality control procedures before and during the construction phase., conduct pre-construction mockups of critical building components (i.e. window assemblies); and require daily inspections of the work by an experienced individual familiar with the plans and…, Foster an environment of frequent and ongoing communication, with all of the subcontractors to facilitate collaborative, proactive problem solving. Of course, the construction process is still highly human-driven and humans occasionally make mistakes. In the…, Construction Executive, Reposted from constructionexec.com, Feb. 16, 2021, a publication of Associated Builders and Contractors. ©Copyright 2021. All rights reserved.
- February 2021 This ‘hidden’ industry is often overlooked by college graduates, but it offers variety, financial security and the satisfaction of helping people when the unexpected happens. When…, Where to Start, Culture is everything. Walking into a large insurance company or even a niche brokerage firm for the first time can be confounding. There’s the language—in which policy terms, conditions and…, Follow Your Interests, Many college programs, including those offering business degrees with a major in insurance or risk management, include internships at companies big and small. This is the time to get a real sense…, Best’s Review, Contributors: Read article in, Best’s Review, As seen in, Best’s Review, . Reprinted with permission from the February Issue of, Best’s Review, . © 2021, Best’s Review, . All rights reserved.
- By Andrew D. Mendelson and Dion N. Cominos | Sunday, January 3, 2021 Legal and practice standards for design and construction professionals are evolving due to climate change. While the cause of…, UPDATE THE ASSESSMENT OF THE PROJECT’S PRESENT CONDITIONS AND LOCATION, The particular types of weather and other natural conditions to which the site or project may be exposed require careful and critical consideration. This includes asking: What are the most recent…, EVALUATE THE SUFFICIENCY OF EXISTING CODES, STANDARDS AND REGULATIONS, Professionals should evaluate and have a clear understanding of each territorial jurisdiction’s codes and regulations—city, county, state and federal. They also need to anticipate the potential…, PROMOTE RESILIENT DESIGN IN DEFINING PROJECT CRITERIA, Resilience is defined as “the capacity to adapt to changing conditions and to maintain or regain functionality and vitality in the face of stress or disturbance.” In applying resilience to the…, STANDARD OF CARE ISSUES, The adoption of comprehensive building codes and amendments addressing extreme weather events will provide a solid foundation for a community working to overcome evolving climatic conditions in the…, RISK MITIGATION STRATEGIES, While risks accompany virtually every project, resilient design is likely to entail its own set of challenges. There are several recommendations for managing the potential exposures. , Anticipate climate change code and practice standard updates and upgrades, For example, if the current code for storm-water management calls for the design of structures to withstand a 100-year flood, it’s probably best to promote design for a 500-year flood. Milestone…, Client recommendations for increased resilient design safety factors, A discussion should take place between design professionals, contractors and project owners pertaining to recommendations about increased factors of safety for resilient design and the owner’s…, Do not allow enhanced design and construction criteria to be compromised during project implementation, Professionals dedicated to the standard of care and its advancement should always resist “value engineering” that may not only diminish the project’s quality and integrity, but also greatly…, About the Authors, Andrew D. Mendelson – Senior Vice President, Chief Risk Management Officer, Berkley Alliance Managers . Contact Info: [email protected] Andrew D. Mendelson, FAIA, is an acknowledged design…, Construction Executive, Reposted from constructionexec.com , Jan. 3, 2021, a publication of Associated Builders and Contractors. © Copyright 2021. All rights reserved.
- by Walter J. Adams, Jr., Berkley Alliance Managers, a Berkley Company Once again, the American economy is in flux. We’re all now in a wait-and-see game with a virus that is endangering the well-…, It’s all in the details, In order to avoid discrepancies, primes and their subcontractors should consider the standard form contracts published by reputable and credible organizations like the American Institute of…, The Scope of Services, All of the services performed by the subcontractor during the scope of the project should be clearly-defined within the agreement. This includes the basic fees for these activities as well as the…, Scheduling, A detailed schedule of services and deliverables is essential for ensuring positive, mutually-agreed upon outcomes. The ability to flexibly accommodate new circumstances and requests should also be…, Billing and Payment, Billing and payment issues are the sources of major disputes. All agreements should define payment schedules, billing cycles, the invoice approval and payment process, due dates, and interest and…, Dispute Resolution, All agreements should include dispute resolution terms. This includes spelling out how the dispute will be resolved by the parties as well as within the courts. Clauses should also be written…, Indemnities should be mutual and based on comparative fault, In other words, the prime and the subconsultant should agree that each party will reimburse the other party “to the extent that each party is responsible for such damages, liabilities, or costs to…, Legal Action Time Limits, The length of time by which a claim can be filed against the subcontractor should be clearly defined in the contractual agreement. Three-to five-year time periods are typical for most projects.…, SIDEBAR, , Things to Consider Before Entering a Subcontracting Agreement, , Select prime consultants with care, When you contract with a prime contractor, that firm becomes your “client.” And just as primes should prudently select their clients and projects, subcontractors also need to answer some key…, Find out as much as you can about the project and the owner, Your contract may be with the prime, but it’s critical for you to understand key factors that will likely impact you and your ability to be successful: Does the owner have experience with this type…, Billing and payment terms, When should you invoice and how soon can you expect to be paid? Will the prime require a pay-when-paid or even a pay-if-paid arrangement? What happens if the project is delayed? What is your recourse…, Review the related agreements, Obtain and review other contract documents referenced by your subconsulting agreement—the owner-prime agreement in particular. The terms should be unambiguous, consistent and not written to pass…, Communicate and document, Engage in ongoing communication with the prime and other project team members, as appropriate. Seek and give continuous feedback. Have a plan to memorialize in writing anything that pertains to the…, Be a team player, Cultivate good relationships with the prime and other subconsultants. Foster a collaborative, problem-solving approach that facilitates common goals. , Lean into problems, If you run into trouble, if you’re not going to meet a deadline or if you become aware of an issue on the project, advise the prime as soon as possible (and your insurer, if the situation could…, Use a checklist to review subconsultant agreement terms and conditions, Key areas should address the project’s: Flow-down of obligations and rights of the owner-prime agreement BIM, CAD, digital practice protocols, if any Schedule Compensation, payment terms Insurance…, Information provided by Berkley Alliance Managers is for general interest and risk management purposes only and should not be construed as legal advice nor confirmation of insurance coverage. As laws…, Walter J. Adams, Jr., is vice president and assistant claims manager at Berkley Alliance Managers, a Berkley Company. Walter has more than 20 years of professional liability claims experience…, The Contractor’s Compass, Reprinted with permission from the November issue of The Contractor’s Compass. © 2020 The Contractor’s Compass.
- November 2020 Exploring the hidden issues sinking your profits Consistently achieving acceptable profit margins is difficult during the best of times. The slightest challenge can derail a project…, 1. Bid Wisely on Projects That Make Sense, During slow times, the temptation is always present to bid on projects that do not match the contractor’s expertise. This error is often compounded with bids that fail to provide comfortable profit…, 2. Evaluate the Cost of Materials in Your Bid, Proposals should address the potential increase in the cost of materials due to the pandemic. Production and manufacturing delays have affected the availability and cost of products. A prudent step…, 3. Factor Site Safety into Your Bid, Jobsite safety is always an important concern on every project. However, additional steps may need to be taken to address pandemic-specific governmental requirements. The additional costs…, 4. Choose Your Business Partners Wisely, How well do you know the project owners? Have their other projects been successful or plagued with problems, change orders and delays? These are important questions to consider before entering into…, 5. Do Your Due Diligence, Never enter an agreement without a clear understanding of the project demands and the potential for unforeseen challenges and changes. This extends from the conceptual design and preconstruction…, 6. Avoid Bad Contracts, Every word matters. Never enter an agreement without documenting the scope of services and the role of every partner involved in the delivery process. This includes the associated risks and…, Limitation of Liability, —This clause can balance risk/reward considerations, particularly when the agreed-upon services are limited in scope., Waiver of Consequential Damages, —This clause can help control the potential of liability., Waiver of Subrogation, —This clause can help minimize lawsuits and the claims related to property loss. Failure to plan for the unexpected can be problematic. This was apparent just a few months ago, when thousands of…, Construction Business Owner, Reprinted with permission from the November issue of Construction Business Owner. © 2020 Copyright Cahaba Media Group, Inc. All Rights Reserved.
- By Edward L. Sheiffele, Jr. | October 19, 2020 , Today's contractors must thoroughly understand all of their exposures., Construction Firms increasingly offer both design and building capabilities. This trend has created a number of fresh liability questions for construction insurance underwriters. Historically,, professional liability insurance policies related to construction, have been created for specific individual risks: architects and engineers, contractors, developers, environmental consultants and other miscellaneous related professionals. There were also policies…, exposure for the design, , manufacture and installation of products. As a result, the technical expertise of underwriters has developed rapidly with almost all of the supporting talent pools seldom straying from their…, Industry shift, With respect to contractors’ professional liability, the growth of design/build as a project delivery method hastened this evolution, especially during the past 15 years. According to the Design-…, a DBIA market study, . Although design-build is purported to deliver projects faster, lower costs and streamline processes from design to construction with one single-point-of-contact for an owner, it also creates, significant additional professional liability exposures for contractors, . Under the traditional design-bid-build project delivery method, contractors and designers have clearly defined the roles and the risks associated with their respective services. In contrast, design…, reduce the liability associated with the errors and omissions of outside design firms, , many contractors responded by expanding their businesses with in-house design services. They essentially became construction firms that offered clients both design and construction capabilities. , Expanded services, liabilities, This vertical integration concept is gaining momentum industrywide. If it worked for contractors, why couldn’t design professionals embrace the same approach by expanding their services with a…, Policy language matters, At the heart of all of these changes to professional liability insurance policies is the definition of professional services. To support the entirety of the firm’s services, this definition should…, The broker’s critical role, Given the potential complexity of ensuring adequate coverage for a contractor that performs a multitude of professional services, it is critical that contractors work with knowledgeable insurance…, Contractor Pollution Liability (for both design and construction exposures), , Protective Indemnity, Cyber Liability and Media & Personal Injury Liability. Most recently, the market evolved once again with the introduction of a genuine Faulty Workmanship Liability…, Edward L. Sheiffele, Jr. (, [email protected], ) is executive vice president at Berkley Construction Professional, a Berkley Company. Sheiffele has more than two decades of insurance industry experience acquired within the construction and…, These opinions are the author’s own., Read article in, PropertyCasualty360, Reprinted with permission from the October issue of National Underwriter PropertyCasualty360. © 2020 ALM Media Properties, LLC.
