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Re: Risky Business

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IIRC a few years ago, it was virtually impossible to get E&O insurance in Southern California for residential condiminium work.  For good reason apparently.

Chris Willcox, SE

Caldwell, Stan wrote:

 I received the July, 2002 issue of Structural Engineer magazine (www.gostructural.com) today, and found a particularly interesting article on Page 11 entitled, "Study: structural engineering is the highest risk design discipline".  The subject study was undertaken by DPIC, a large professional liability insurer, based on their claims from 1996 to 2000.  This included a total of 8,687 claims, of which 990 were structural.  Here are some of the conclusions:*  DPIC measures relative risk as claims paid divided by fees earned.  Structural engineers accounted for 16.1% of claims dollars paid, but earned only 6.7% of fees.  By comparison, civil engineers accounted for 21.5% of claims dollars paid, but earned 29.0% of fees.*  The single highest risk category is a structural engineer working on a residential condominium project.  These projects accounted for 11% of all structural claims dollars paid.*  Broken down by building system, structural claims included 14% for walls, 13% for foundations, 12% for beams and joists, and 10% for roofs.*  The number of structural claims can also be broken down by type of claim, with 47% for property damage, 40% for economic loss, and 12% for bodily injury. *  About 62% of structural claims were made by owners and clients, 25% by third parties, and 11% by contractors and subcontractors.I suggest that you keep these numbers in mind the next time your client wants a deeply discounted fee on his urgent but highly innovative condominium project!Best regards,Stan R. Caldwell, P.E.Dallas, Texas*********************************************Structural engineering is the art of molding materialswe don't wholly understand, into shapes we can't fullyanalyze, so as to withstand forces we can't really assess,in such a way that the community at large has no reasonto suspect the extent of our ignorance."     ...Jim Amrhein********************************************* ******* ****** ******* ******** ******* ******* ******* *** * Read list FAQ at: http://www.seaint.org/list_FAQ.asp * * This email was sent to you via Structural Engineers * Association of Southern California (SEAOSC) server. To * subscribe (no fee) or UnSubscribe, please go to: * * http://www.seaint.org/sealist1.asp * * Questions to seaint-ad(--nospam--at)seaint.org. Remember, any email you * send to the list is public domain and may be re-posted * without your permission. Make sure you visit our web * site at: http://www.seaint.org ******* ****** ****** ****** ******* ****** ****** ********
  ******* ****** ******* ******** ******* ******* ******* *** * Read list FAQ at: http://www.seaint.org/list_FAQ.asp * * This email was sent to you via Structural Engineers * Association of Southern California (SEAOSC) server. To * subscribe (no fee) or UnSubscribe, please go to: * * http://www.seaint.org/sealist1.asp * * Questions to seaint-ad(--nospam--at)seaint.org. Remember, any email you * send to the list is public domain and may be re-posted * without your permission. Make sure you visit our web * site at: http://www.seaint.org ******* ****** ****** ****** ******* ****** ****** ********