Focus On Mechanical Engineering Risks

Nearly half of all professional liability claims against mechanical engineers are primarily caused by HVAC problems. What's more, HVAC claims are among the most costly.

According to XL Design Professional's Focus on Claims study, HVAC was the primary element involved in 47% of professional liability claims against mechanical engineers. That was followed by plumbing (13%), equipment (5%), process design/operation (3%) and code compliance (3%).

Even more dramatic, HVAC problems consumed nearly 61% of all claims dollars paid by XL Design Professionals on behalf of its mechanical insureds. That was followed by process/design/operation (9%), equipment (6%) and plumbing (5%).

Other findings:

Commercial/industrial projects of nine or fewer stories are among the least risky project types for mechanicals. While mechanicals have derived 25% of their fees from commercial/industrial projects, this type of work has resulted in only 18% of claims and expended only 13% of claims dollars paid by XL Design Professionals. Hospital work has also been relatively low risk, generating more than 9% of fees but resulting in only 8% of claims and 7% of claims dollars expended.

Among the higher risk projects for mechanicals have been schools (through grade 12), with nearly 13% of closed claims but only 8% of fees. These claims have been relatively low-cost, however, resulting in 8% of claims dollars expended by XL Design Professionals.

Owners/clients filed 64% of claims against mechanicals and expended 74% of claims dollars paid by XL Design Professionals. Contractors and subs filed 16% of claims (9%of claims dollars), while third parties filed 16% of claims (14% of claims dollars).

Mechanicals faced more claims for economic loss (47% of claims, 50% of claims dollars) than for property damage (40% of claims, 43% of claims dollars).

The information in this and all other on-line articles of XL Design Professionals intends to inform its readers only, not to render legal services. For legal advice, seek the services of a competent lawyer. For coverage information, refer to XL Design Professional's policy forms.