No. 4: Human capital and workforce management

What is the succession plan? The aging workforce is a challenge for many A&E firms. With many industry veterans nearing retirement, understanding a firm’s succession plan is critical to ensuring the long-term success and stability of a business.

Having a plan is key. An insurance carrier is not going to dictate what that plan should be, but they will feel a lot more comfortable knowing that effective change management is taking place, and firms are doing their best to educate and pass on industry knowledge and expertise to the next generation of design professionals.

This trend is also driving mergers and acquisitions (M&A) between A&E firms. Agents should be well-versed in how the M&A process works when it comes to the sale of a firm or a firm’s assets. Understanding whether there is an extended reporting period post-M&A and how the professional liability is covered is key to protecting the coverage needs of the former principals.

Targeting these four key areas will help insurance agents play their pivotal role in getting A&E clients the right professional liability coverage tailored to their unique needs.

Wayne Brockington, RPLU, AU, is a vice president at Berkley Design Professional, a Berkley Company. He has 20 years of experience in the A&E professional liability insurance market with an emphasis in underwriting and claims. Wayne can be reached at wbrockington@berkleydp.com.

Michael Hraber, CPCU, RPLU, is a vice president at Berkley Design Professional, a Berkley Company. Hraber has more than 20 years of experience in the professional liability insurance market with a focus on A&E clients. He can be reached at mhraber@berkleydp.com.

The remarks in this piece are the authors’ own and do not necessarily represent the views of Berkley Design Professional or W. R. Berkley Corporation.

See also:

Special Reports /

Professional liability insurance smarts for architects and engineers

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