Professional liability insurance premiums for engineers and architects, which in recent years have been at historic lows, are on the rise, according to a recent survey of 14 leading A/E insurance companies.
The nation-wide survey—carried out by the National Society of Professional Engineers/Professional Engineers in Private Practice (NSPE-PEPP) (Alexandria, VA), the Risk Management Committees of the American Institute of Architects (AIA), and the American Council of Engineering Companies (ACEC)—compiles information relating to coverage, exclusions, claim trends, and the insurer's history, among other issues.
According to survey results, current premium rates were already heading higher prior to the events of September 11. Expected losses from September 11 came at a time when many insurers, financially weakened as a result of overzealous competition, already were experiencing pressure from reinsurers to increase rates and drop unprofitable programs.