Risk Specialty Group captures 4th Best Practices Agency Award

Sep 22, 2022Risk Management

Houston, TX September 22, 2022 – Risk Specialty Group retains its Best Practices status for the fourth consecutive year, once again becoming a part of an elite group of independent insurance agencies around the United States. This status comes by participating in the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) Best Practices Study group. The annual survey and study of leading independent insurance agencies documents the business practices of the “best” agencies and urges others to adopt similar practices.

2022 Best Practices Logo

 

Each year since 1993, the Big “I” and Reagan Consulting, an Atlanta-based management consulting firm, join forces to study the country’s leading agencies in six revenue categories. The agencies comprising the study groups are selected every third year through a comprehensive nomination and qualifying process and awarded a “Best Practices Agency” designation. The selected “Best Practices” agencies retain their status during the three-year cycle by submitting extensive financial and operational data for review each year.

More than 2,600 independent agencies throughout the U.S. were nominated to take part in the annual study, but only 282 agencies qualified for the honor. To be chosen, the agency had to be among the top-performing agencies in one of six revenue categories.

The agencies were nominated by either a Big “I” affiliated state association or an insurance company and qualified based on its operational excellence.

The Best Practices Study was started by the Big “I” in 1993 as the foundation for efforts to improve agency performance. The annual survey and study of leading independent insurance agencies documents the business practices of the highest performing agencies and urges others to adopt similar practices.

Are your firm's Cyber risks actually covered? If you're like most design professionals, the answer might surprise you.

According to the World Econo

Does your E&O policy cover cyber attacks?

For most design professionals, the answer is no.

The most common coverage in Professional Liability policies regarding any type of virus transmission is called "network security" liability. But this is only for "3rd party" expenses, such as when a design firm gets sued by one of their clients for the transmission of a virus. It covers the cost of defense and any "3rd party" costs that the client incurs. However, it does not provide any "1st party" coverage for the design firm itself in the event of a cyber attack or breach. Also, these endorsements typically offer sublimits that cap payouts at a fraction of actual incident costs.

Only true Cyber Liability covers 1st party costs associated with a cyber attack or breach on the design firm. That is why the coverage within a Professional Liability is called "network security" and not "cyber liability".

What about a major ransom demand? What about two weeks of system downtime? What about paying a fake invoice for $85,000?

That's a different category of loss entirely. The vast majority of design firms enter 2026 without true cyber coverage.

The FTC's cyber insurance guidance recommends standalone cyber coverage for businesses.

Why are engineering firms prime targets?

Fifty-nine percent of AEC firms experienced a cybersecurity threat in the past two years, according to Dodge Data & Analytics. Cyberattacks on construction companies doubled in Q1 2024 compared to Q1 2023.

The reasons are structural. Engineering firms hold exactly what attackers want:

  • Time-sensitive projects where delays cost real money
  • Critical infrastructure plans of interest to nation-state actors
  • Detailed client information across multiple projects
  • Smaller IT budgets than the data they protect would suggest

Design professionals are more than twice as likely to face ransomware attacks compared to other industries, according to research from CyberPress and FalconFeeds.

DragonForce, a ransomware group that attacked O&S Engineers & Architects in February 2025, specifically targets architecture and engineering firms. They kn

Frequently Asked Questions

Does my professional liability policy cover cyber attacks?
Just 3rd party claims, if at all. Typical coverage within an E&O policy that is associated with cyber threats are usually called "Network & Security" Liability endorsements and these only cover 3rd party claims. These are claims from your clients alleging you (the design firm) spread a virus to them and would cover the costs to restore your client. There is usually no coverage for the design firm itself for a cyber breach it experiences and the internal expenses associated with it. That's why a standalone Cyber Liability policy is needed to cover these 1st Party expenses. Review your policy language carefully.
Is the cyber add-on to my E&O policy enough protection?
Usually not. Cyber endorsements tend to offer lower limits, narrower coverage, and more exclusions. And they usually only cover the expenses to restore a client or other 3rd party. Not the Design Firm itself.
Why are engineering firms prime targets for ransomware?
Three reasons: deadline pressure, valuable data, and inadequate defenses. Attackers know engineering firms can't afford extended downtime. That pressure makes engineering firms more likely to pay ransoms quickly.
What happens if client data or CAD files are breached?
You face immediate costs for forensic investigation, legal counsel, and notification. Longer term, you may face lawsuits, regulatory penalties, and reputational damage. Cyber insurance covers these costs. Your E&O likely won't.
How much does cyber insurance cost for design firms?
Premiums vary based on firm size, revenue, and security measures. Many design firms find coverage more affordable than expected, especially compared to the potential cost of an uninsured breach. For firms with Revenues of $1M to $5M the annual premiums can range from $1,000 to $3,000 depending on the limits and coverages selected.

What should design professionals do now?

Effective risk management services start with understanding your actual exposure.

Don't assume your current coverage is adequate. Pull your policy. Read the cyber-related language. Look for exclusions, sublimits, and gaps.

Then ask yourself:

  • What would two weeks of downtime cost in lost revenue?
  • What would you do if you paid out $50,000 to a fake invoice?
  • What would you do if you could no longer access your design plans and email account?

If those questions concern you, it's time for a real conversation about standalone cyber coverage.

At Risk Specialty Group, we're not just another insurance provider. We're your guide in navigating the complex world of cyber risk for design professionals.

We work with over 20 "A" rated carriers who specialize in architects, engineers, and design firms. We know what questions to ask because we've seen what happens when firms don't have the right coverage.

Ready to understand where you stand?
Just a Quote — For those who know what coverage they need
Conversation & Quote — For those unsure about cyber coverage gaps
Full 360° Review — Comprehensive risk analysis including emerging cyber exposures

Contact Risk Specialty Group: 713-552-1900 | info@riskspecialtygroup.com

About the Author

Travis Landers, ARM, is the President and Founder of Risk Specialty Group, a Houston-based insurance and risk management firm serving design professionals. A UT Austin McCombs School of Business graduate with over 25 years of entrepreneurial experience, Travis founded RSG in 2010 to help architects, engineers, and consultants navigate the complex world of insurance and risk management. Under his leadership, RSG has earned the IIABA Best Practices Agency designation multiple years running. Risk Specialty Group serves design professionals across Texas, Arizona, Arkansas, California, New Mexico, and Oklahoma.