This continues a 10-year downward trend in the percentage of firms that choose to practice without insurance. ACEC President Don Trim applauds those firms that have decided to purchase professional liability insurance, and encourages those still debating the issue to speak with a broker as soon as possible. While effective risk management techniques can often help firms avoid litigation, they don t always work. For this reason, firms should consider carrying either annual professional liability or project insurance. As in 1997, the most significant factor mentioned by survey respondents was the premium.
Firms also place a great deal of importance on the carrier s stability in the market.
Fully two-thirds of survey respondents stated that they evaluate a carrier s stability and position in the marketplace before agreeing to purchase a policy. Richard Crowell, senior vice president with DPIC Companies, Inc., liability insurers, says that firms want their insurance carriers to offer more than low premiums. This makes sense. By learning how to control their risks, these firms will, in the long run, see their premiums drop for the simple reason that better-managed firms are better risks for insurance companies. Nothing could be further from the truth.