(July 2024)
Underwriting is always essential. The coverage form on the existing policy, if any, must be reviewed to determine how the current form compares to coverage being contemplated.
Because each insurer develops program features to fit its desired market, variations will be found among these, respective, areas:
Related Article: Land Surveyors Professional Liability Coverage Analysis
The amount of time that a person and/or firm has been in practice is important. Longevity is a solid indicator of competence. Besides the named firm, information should be gathered for all subsidiary organizations as well as predecessor firms. For the latter, it should be determined whether there is any knowledge of possible claims arising out of previous operations. This information is particularly important when the current firm is a newer one and previous firms are still in the loss development horizon.
Complete information is also necessary. It should cover the type of surveys performed, type of clients (particularly when a high percentage of government customers are served) and the area of primary performance (surveying or civil engineering).
It is also important to review the credentials of the persons in the firm. What professional organizations do they belong to, how long have they been members, do their credentials match the type of work they perform? Develop more information on firms that derive a significant amount of income from consultant engineering work which generally requires a higher level of expertise.
Ask the following questions:
A firm may provide clients with road and highway measurements, rural or farm work or sub-divisions. Each service poses its own loss exposures and coverage requirements. Road and highway work must be exacting as land for such construction is often obtained through eminent domain. Measurements for subdivisions must also be performed at a high level of accuracy. Accurate measurement allows realtors and contractors to properly locate utility services and plot sites, while making the highest use of the land available. Rural, mountainous, or woodland measurements are more difficult because of the environmental factors.
Related Article: Types Of Surveys
Are references requested and checked? Is there a mentoring or evaluation period? What training is required and what is given?
Consistent procedures are the key to risk management and quality risks should establish and adhere to them. A step-by-step method should be outlined and documentation required as each step is completed. This type of information is vital in defending a claim.
Variance from standard procedure may be required for a potential client and how and when those variances might occur and who in the company must approve them should also be outlined. Again, the accompanying documentation is very important.
This coverage is about attention to detail and all underwriting for it must be equally detailed.
Any operation’s prior loss or claim experience is very important. The type, frequency and severity of claims experienced by the insured must be carefully evaluated. This information will assist in determining whether the risk is desired by the insurer and what features should be included in the program it is willing to offer such as:
· Coverage options
· Exclusions
· Amount of “per claim” and aggregate limits
· Deductible or self-insured retention
· Whether excess liability limits are necessary or available
Land Surveyors Professional Liability Insurance is a non-standard line of business that is offered by specialty insurers that have substantial knowledge, resources, and experience in profitably underwriting surveyor operations. The products, coverages, target markets, specialties, and underwriting eligibility of each individual insurer must be evaluated for compatibility to each insured. This must be done carefully since there are no standard forms acting as a standard for making program comparisons. Some insurers have eligibility requirements not only for the overall coverage, but also as to whether an individual coverage, payment basis or coverage option is offered.
It is important to determine the insurer’s level of expertise in the market. Indicators include how long it has been in the market and what its market niche is. What is even more important is the insurer’s financial strength and stability. Claims faced by surveyors tend to be quite complicated and often take years to resolve. An insurer must be available to handle such losses and to provide a legal defense.