With construction volume down and the cost of defending claims up, major insurers providing professional liability coverage to architects and engineers all plan to raise rates in 2011, according to a new market survey by Ames & Gough, the McLean, Va., insurance broker and risk consultant. The trend, based on responses from insurers representing 70% of the U.S. market for this coverage, is the first across-the-board increase in several years, says Dan Knise, president and CEO. He says about a third of providers lowered their rates in 2010. Knise points to new project management approaches—such as integrated project delivery and
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.