10 reasons to include risk management practices at your design firm
Whether you have a firm of one person or one hundred people risk management should be a part of your daily practices. Here are some reasons why:
It protects the assets of your firm – risk management, in additional to an insurance policy, protects your firms assets. Your firm doesn’t want the added expenses of a project that has issues and causes more time spent from you or your staff.
To avoid claims – it is possible to have the highest level of risk management in place and still get a claim. However, if your firm does have risk management procedures in place for projects it does help to elevate potential claims. Your firm, with risk management, has put your best foot forward in not only the design but the excellence of work behind the design such as quality control.
Projects run smoother – nothing is better than a happy client. Risk management helps alleviate issues that may come up on a project. Free pre-claims assistance from your Professional Liability insurance company can help with some of those potentially issues.
Repeat clients – since the project ran so smooth from your hard work and risk management practices you are more likely to get repeat clients or referrals.
Insurance discount – some insurance companies may offer an additional discount on your insurance premium if your firm has a risk management program in place.
All employees of the firm have the same guidelines to follow – risk management provides specific guidelines for your principals and staff to follow. Starting with contracts and dealing with any issues that may come up on the project, there is a specific standard.
Contracts – this is the first step in the process with working with your client. Risk management provides tools to agree to the contract that works for all parties involved.
Expectations with clients are set – this first starts with the contract, knowing what the time frame and scope of services are importing in setting a tone for the overall project flow.
Education – with the ever changing world of construction and laws associated with design and construction it is important to know the latest information. Risk management resources provide that source for your firm and the employees of your firm.
Sub-consultants are required to have specific expectations as well – since your firm has a strong risk management program this sets the stage for what you expect of your sub-consultants.
If you are looking for risk management resources or have questions about risk management please contact your PUI Agent.