Schinnerer Expands Professional Liability Coverage for Design Professionals

PRODUCT: Design professional liability coverage

COMPANY: Victor O. Schinnerer & Company and CNA

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available on an open-brokerage basis.

FOCUS: With steady growth expected in the rebounding construction industry, risk management remains a priority among architects, engineers and other design professionals. Victor O. Schinnerer & Company has a newly expanded liability coverage that offers a timely opportunity for independent agents and brokers.

Schinnerer has provided broad coverage options to the design community for more than 58 years. The professional liability coverage protects design firms from allegations and claims resulting from failure to meet industry standards.

“For this line of business, an outsider’s view doesn’t cut it,” says Kevin Collins, Schinnerer senior vice president, professional liability, who notes that the company’s underwriters average seven years of experience in the field. “When they assess your risk and underwrite your policy, they see your projects as clearly as you do.”

In addition to policy forms, Schinnerer keeps insureds aware of emerging risks through newsletters, contract reviews, claims studies, online education modules and more—all at no additional cost. Firms that take proactive steps to manage their own risk can also benefit from Schinnerer’s risk mitigation credit that rewards a firm by lowering its premium.

UNDERWRITING: Schinnerer provides a wide array of limit and deductible options to meet the needs of each client. Professional liability packages are tailored to the size and type of firm and come with a variety of policy enhancements, including expanded pollution liability coverage, rectification expense coverage, deductible incentives, supplementary payments, exclusion carve backs and additional extended reporting period options.

Small firms and environmental consultants will enjoy a reduction in policy rates for new business in most states. For small architectural and engineering firms, rate reductions reach 20% for annual billings of $250,000-$500,000. Environmental consultants receive rate reductions up to 15% for annual billings up to $5 million.

Coverage features also include first dollar defense coverage; risk management and loss prevention services available online; incident reporting at the policyholder’s option; free pre-claims assistance; local claims service provided by A&E claims specialists; broad coverage for pollution, asbestos and equity interests; international coverage; 5% mitigation risk credit if eligible; 5% premium credit for members of the American Institute of Architects and the National Society of Professional Engineers; multi-year policy availability for eligible small accounts; and free contract review services. Schinnerer offers next-day quotes and a short application process, Collins says.

A cyber liability endorsement is available to all types of design professionals.

MINIMUM PREMIUM: $1,000.

TARGET: Any size U.S. firm, including small A&E firms with annual billings up to $500,000; midsized A&E firms with annual billings from $500,000 to $5 million; large A&E firms with annual billings in excess of $20 million; construction consultants; construction management, including owner’s representatives and owner’s advisers; environmental consultants; interior designers; land surveyors; and landscape architects.

COVERAGE TERRITORY: U.S. and Puerto Rico.

CONTACT: Kevin Collins, senior vice president, professional liability; Victor O. Schinnerer & Company, 2 Wisconsin Circle Chevy Chase, MD 20815; 301-951-5412.

Ronimarie Acord is an IA contributor.