Beyond the Blueprint: Why Specialization Is Key to Placing AE&S Insurance
For Design Professionals such as Architects, Engineers, and Surveyors (AE&S), standard commercial insurance is often not enough. These firms face a unique combination of risks — from professional errors and omissions to unexpected field hazards and complex contractual demands—that require highly specialized coverage. As an agent, securing the comprehensive protection these clients need means understanding where their risks truly lie and partnering with a dedicated team built to address them.
Justin Kano-Mannaz, Underwriter and Managing General Agent for the Travelers National Property & Casualty Insurance Program for Design Professionals at Breckenridge Insurance (an Accretive Company) shares the crucial considerations for agents entering or growing in this AE&S specialization.
Uncovering the Hidden Claims in the Design Industry
While many third-party claims against design firms are directed toward Professional Liability (PL) policies, the most frequent and challenging claims often hit other property and casualty lines. The most concerning insurance claims for Architects, Engineers & Surveyors frequently involve the combination of Auto, Workers' Compensation, and Umbrella policies.
- Auto Claims are a Major Sore Spot: Auto claims are a major exposure for the AE&S classes. Land surveyors and engineers drive from site to site and are often parked in hazardous locations, leading to accidents that trigger both Auto Liability and Workers' Compensation for architects, engineers and surveyors.
- Unique Workers’ Comp Exposures: Exposures for surveyors and engineers are high in the field. These aren't typical office injuries; they range from falls in gopher holes to hazardous material events. Equipment used for asphalt density testing, for example, can contain radioactive material and create hazmat exposure if damaged on the road.
The Power of Specialization and Expertise
To handle these complex risks, you need a carrier and a wholesale partner who understand the unique needs and characteristics of this class. With an industry-specific program such as the Breckenridge Design Professionals P&C package solution, agents benefit from:
- Dedicated Claims Handling: A specialist carrier representative understands how a claim will manifest in this specific class, which is vital for efficient resolution and differs significantly from handling a contractor's claim.
- Top-Rated Carrier: Having a program carrier partner such as Traveler’s that is well-regarded, financially stable and committed to the industry provides peace of mind in presenting reliable options to your valued insureds.
- The Complete Package: The biggest value add is creating a complete AE&S insurance package. By encouraging the client to combine General Liability, Property, Workers' Comp, Auto, and Umbrella insurance, the client works with only one carrier in the event of a claim. This eliminates the insured scrambling to manage multiple carriers if the loss hits several policies and further simplifies their billing.
Successful placement in this specialization requires presenting underwriters with more than just basic information.
- Lead with the Professional Liability Application: The most crucial piece of underwriting information is the Professional Liability application. This is required because it tells the underwriter about the firm's specific discipline (e.g., structural vs. civil engineering) and the types of projects they handle—data that is simply not available on a standard ACORD form.
- Highlight Web Presence: A strong, up-to-date company website is extremely helpful. Underwriters use the site to confirm the firm’s scope of work aligns with the insurance company’s target market and may even require amendments if the website suggests "big and scary" exposures that are not within the carriers’ appetite.
- Address Contractual Requirements: The program’s design includes coverages specifically required by contract, such as Additional Insured forms and Waiver of Subrogation, providing agents with these tools initially will help to meet client requirements.
Essential Advice for Agents
- Start Early: Begin fishing for accounts 120 days out and secure submissions at a 90-day minimum before the expiration date. Starting early is crucial to build the relationship with the decision-maker and avoid the "festival of the last minute".
- Know Why You're Shopping: Always inform your wholesale partner of the client's current carrier and their renewal target premium. This allows the specialist to quickly assess competitiveness and strategize based on coverage needs.
- Focus on the Full Picture: When looking at a risk, always round out the policy from a property and casualty perspective. Inland marine coverage for surveyors' equipment or construction management insurance should be considered to ensure a holistic package.
Elevate Your Success in the Design Sector
It's clear: the architects, engineers and surveyors' insurance market is defined by volatility and complex demands, and specialization is the key to achieving favorable outcomes for your clients. With deep industry P&C programs and professional lines wholesale brokerage expertise in this space, Accretive provides the dedicated expertise you need to grow AE&S business together.
When you partner with Accretive specialists, you don't just secure coverage for your clients — you elevate your practice as a truly comprehensive advisor in the design sector.
All it takes to get started is a conversation. Contact our AE&S Specialists by clicking the link below
