Specialty Insurance Blog

Architects/Engineers E&O Insurance Market

Like many professional liability (E&O) segments, rate increases and tightening underwriting are slowing in the Architects/Engineers E&O Insurance market. An improving economy, and the improving construction market in particular, are driving growth in the sector and associated growth in premiums. A recent survey by Ames & Gough (see here) confirms this moderating trend. The survey of 14 insurers indicates that 9 insurers plan to raise rates this year, and the other 5 plan to keep rates flat. Of the insurers planning to increase rates this year, 7 plan to increase rates 5% or less. Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the... Read more →

Consent to Settle Provisions in E&O Insurance Policies

The consent to settle provision, or hammer clause, is prevalent in E&O (errors & omissions or professional liability) insurance policies. And it gets a bad rap. The wording might read as follows: The Insurer’s duty to defend ends if an Insured refuses to consent to a settlement that the Insurer recommends. The Insurer’s liability shall not exceed the amount for which the Insurer could have settled such Claim had such Insured consented, plus Defense Costs incurred prior to the date of such refusal… The wording is written to protect the insurer in the event of a bad outcome while giving the insured a voice in the claim settlement process. The practical effect is more important. As pointed out by Curt... Read more →