Errors and Omissions Rates Beginning to Rise for Second Quarter
The latest MarketScout barometer showed that commercial lines insurance rates overall increased by 5% in August, with Commercial Property taking the lead at 7% and Workers Comp at 6%. Towers Watson also released data showing commercial insurance pricing increasing by 6% during the second quarter of 2012. According to Towers Watson, the largest price increases were also in workers compensation and commercial property, both in the high single digits.
Specifically in the MarketScout data, Professional Liability rates increased 3% in August. What’s more, additional data from a major insurance brokerage firm also saw overall increases (between plus and minus 5%) in Errors & Omissions (E&O) rates for the second quarter in 2012. The increase in insurance rates, according to the data in the policies the brokerage secured, was due to both frequency and severity of E&O claims, specifically when it came to cyber losses. In addition, practice architects and engineers (A&E) liability insurance had the highest price per million dollars (PPM), with miscellaneous professional liability (MPL) following.
As an MGU and wholesaler, Caitlin-Morgan can provide your clients with specifically tailored E&O insurance for architects and engineers at competitive rates. We all understand that the consequences of design errors can be costly and can have serious consequences for an architect or engineer, the firm, and his/her client. The defense costs alone can run to seven figures in a serious claim regardless of its merit. Therefore, it’s critical for a successful architectural or engineering design firm to protect itself with a well-designed errors and omissions insurance policy. Talk to Caitlin-Morgan about our programs, features, and pricing. Give us a call at 877.226.1027.