Focus On Structural Risks

Structural engineers who work on condominium projects are among the most likely to face claims and lawsuits for design errors and omissions.

While XL Design Professionals-insured structurals have derived only 1% of their fees from condominium work, such projects have been the source of more than 12% of their closed claims. What's more, condo claims have consumed more than 19% of the total claims dollars expended by XL Design Professionals on behalf of structural engineers.

By comparison, commercial/industrial projects of nine stories or fewer appear far less risky. Structural engineers have derived more than 25% of their fees from these commercial/industrial projects, yet these projects have resulted in only 15% of closed claims, consuming less than 17% of claims dollars.

Other findings:

The elements of work that have been the primary cause of claims against structural engineers are fairly evenly divided. Wall problems top the list, accounting for 12% of closed claims, followed closely by roofs (11%), beams/joists (10%), and foundations/footings (9%).

By element of work, the most claims dollars paid by XL Design Professionals on behalf of structural engineers involved walls (13%), foundations/footings (11%), beams/joists (10%), connections (9% of dollars, but fewer than 4% of claims) and roofs (8%).

Owners/ clients filed 55% of claims against structural engineers and consumed 60% of claims dollars. Third parties filed 26% of claims (25% of claims dollars), while contractors/subs filed 16% of claims (14% of claims dollars).

Approximately 51% of closed claims against structural engineers were filed for property damage. That's followed by economic loss (34%), construction bodily injury (7%) and other bodily injury (5%).