In the event of a professional liability claim or potential claim, architects and engineers must promptly notify their insurance carrier or insurance agent, meticulously preserve all project documentation, and avoid admitting faults. Your firm’s core duties focus on protecting the defense strategy, satisfying policy requirements, and assisting with investigations.
Immediate Action & Reporting
- Prompt Notification: Notify your professional liability insurance carrier or agent immediately. Most policies are “claims-made” and require reporting within the active policy period.
- Do Not Admit Liability: Do not assume or admit fault, promise repairs, or make voluntary payments out of pocket, as this can severely compromise or invalidate your insurance coverage.
- Pre-Claim Assistance: Many policies offer pre-claim assistance to help mitigate issues before they evolve into full lawsuits.
Documentation & Evidence
- Meticulous Preservation: Gather and secure all relevant project data, including contracts, design iterations, emails, meeting minutes, daily logs, and photographs to provide to the claims representative or attorney assigned to the matter.
- Avoid Deletions: Do not alter, delete, or hide any project files once an incident or claim is anticipated.
Cooperation & Legal Defense
- Collaborate with Experts: Do not attempt to negotiate or handle the claim on your own. Work closely with the claims representative and the legal counsel assigned to your firm.
- Assist in Investigations: Provide your legal team with all necessary access to staff, sub-consultants, and files.
- Support Subrogation Efforts: Assist your insurer in pursuing third parties (like contractors, manufacturers or subconsultants) who may be partially or fully liable for the damages.
Contractual & Regulatory Compliance
- Review Contractual Duties: Familiarize yourself with the contract language and what is expected by the project owner to manage risk properly.
- Reporting Disciplinary Actions: Your policy may require you to report regulatory or licensing board complaints.
Here is an additional resource from AIA on how to respond to claims. https://www.aia.org/resource-center/risk-management-basics
If your firm has any questions about a professional liability policy claim response please call, or email, your Professional Underwriter agent for assistance.