Evaluating the cost of insurance and, more importantly, the total cost of risk against historic performance, peer firms, and industry statistics can be an invaluable tool for managing risk and improving profitability. Ames & Gough assists its clients in undertaking this benchmarking analysis. With over 1000 design firm clients and active relationships with all key professional liability underwriters we have unparalleled access to the information you need to make informed decisions.
The cost of risk is more than just insurance. Architects and engineers need to be able to measure and manage of the following costs:
- Insurance premium and related costs
- Cost of deductible or uninsured claims
- Cost of staff time spent on risk management/loss prevention
- Cost of resolving problems before they become claims (including rework)
- Cost of staff time spent resolving claims
Based on data from a variety of sources-ACEC, AIA, insurers, clients, insurance associations-the cost of risk can be as much as 5% to 6% of revenue.
Once a firm understands it costs, programs put in place can be measured and monitored to determine their effectiveness.
For more information on benchmark data available from Ames & Gough, please send an e-mail to firstname.lastname@example.org.