Skilled risk management is critical to the survival of architect and engineering firms. The increase in the frequency of professional liability claims against these firms, combined with increasing costs of defending and paying the claims, has very serious repercussions for many firms–including rising professional liability insurance premiums.
Loss history can be fatal to a design firm's survival. And, conversely, effective risk management is essential for the long and productive life of a design firm.
Several dynamics are driving the overall increase of claims. Paramount among them is accelerating financial pressures that many project owners pass along to their project partners, including architect and engineering firms. Perhaps the biggest culprit is a "build it better, cheaper and faster" mindset, and the resulting pressures that permeate many job sites.
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