About two out of three of the 14 leading providers of liability insurance to design professionals say they paid a claim of $1 million or more in 2013, and about one out of five report that their largest claim was between $10 million and $19 million.
That was one of many facts and trends reported in the annual survey of most large professional liability insurers by Ames & Gough, the Washington, D.C.-based broker. The survey shows that 2013 was a second consecutive year of modest premium price gains by the insurers.
According to the survey, rate increases on renewal of 2% to 5% are common, but can be higher for architects and engineers with poor claims histories.
“While premium rates will likely trend upward for the third consecutive year in 2014, the good news for design firms and other construction professionals is that the size of these increases has been relatively modest,” states Ames & Gough.