Exclusions on a Professional Liability Policy for Architects/Engineers While the exclusions will vary with each insurance company there are several that are quite common amongst most policies. Here are some sample wordings of common exclusions on policies. Example one: Based…
The importance of reading your architecture/engineering firms Professional Liability policy…. Your firms Professional Liability policy is probably one of the most important insurance policies your firm has that is directly related to the work that your firm does. It is…
Can my architecture/engineering firm have a choice of counsel on Professional Liability? This is a great question and an matter that needs to be address prior to purchasing your firms Professional Liability policy. Many architecture and engineering firms have an…
What is a deductible credit on Professional Liability for architects and engineers? The deductible credit definition will vary with each insurance company and generally will be for early resolution of a claim or use of mediation. Here are a few…
Choosing a Limit of Liability on Your Architecture/Engineering Firms Professional Liability Policy These are the times you wished you had a crystal ball to predict the future and what a claim might cost your firm. Unfortunately we do not have…
Additional Insured Language in a General Liability Policy for Architects and Engineers Most general liability policies for architects and engineers are geared specifically towards the specific industry so the wording of additional insured may look slightly different than it would…
3 Keys to Combat Hackers in Cybercrime Surge Cyber attacks have spiked dramatically since the COVID-19 crisis began, leading to what some are calling a “cybercrime pandemic” as hackers capitalize on vulnerabilities inherent in a newly remote workforce. The U.S. Federal Bureau of Investigation is…
Diminishing Limits of Liability on Professional Liability for Architects/Engineers What does this mean, diminishing limits? This is also referred to ask shrinking limits. If your firm has a claim the amount of the indemnity and expenses reduces the limits of…
What does my architecture/engineering firm need to do in the event of a claim or circumstance? First and foremost your firm needs to report the claim or circumstance immediately to your agent or insurance company. After the claim or circumstance…
a/e ProNetwork News March 2020 A federal district court in Wisconsin held that the contractual liability exclusion of a professional liability policy means that the policy only covers third party claims against an engineer and affords no coverage for claims…
What to Be Aware of as the Prime Consultant on a Project As the prime consultant on a project your design firm holds the contract with the owner or developer on the project and takes on more responsibility than being…
Risk Management Seminar – THIS WEEK! Registration is still open! Continuing Education Credits can be earned at our upcoming seminar – Risk Management for Design Professionals. This seminar is registered with AIA/CES! Click HERE to REGISTER TODAY! GRAND RAPIDS, MI – March 4th…
2020 Risk Management Seminar – Denver Our Denver seminar was Tuesday, February 25, 2020 and was a great success! The topic was, Claim is a five letter word: what happens when it happens to you. Barb Sable from RLI Insurance…
Electronic Transfer of Documents By, Powell, Trachtman, Logan, Carrle & Lombardo, P.C.* I. What’s at stake? Clients, contractors and subconsultants frequently request that your work product be supplied in an electronic format. Such a request may require that you transfer…
Benefits of Risk Management in Your Architecture and Engineering Firms Whether you are a small firm or a large firm good risk management practices are essential. What can risk management look like for your firm? Risk management can sound like…
Continuing Education Credits can be earned at our upcoming seminar – Risk Management for Design Professionals. This seminar is registered with AIA/CES! Click HERE to REGISTER TODAY! GRAND RAPIDS, MI – March 4th TROY, MI – March 5th Mark your calendars to attend!…
A.M. Best Ratings on Insurance Companies for Architects and Engineers Insurance companies worldwide have an A.M. Best rating, what does this mean? A.M. Best is a rating agency that provides a rating on each insurance company based on financial strength…
Early Mediation – A Low-Risk High-Reward Proposition Early mediation is a mechanism that can provide a path to resolution. This forum allows the parties to present their issues to a knowledgeable intermediary who will work with all sides to facilitate…
Understanding Depleting Limits of Liability in a Professional Liability Policy for Architects and Engineers Limits of liability in your firm’s policy will be defined in the declarations page of your firm’s policy and is determined at renewal time or when…
Record Retention for Architects and Engineers The first of the year is always a good time to consider what records to keep and what records to let go of. It is best to have a written policy in place at…
Social Media and Design Firms Social media sites such as Facebook, Twitter and YouTube are just a few examples of the technology available to design firms and other businesses to promote their business and the services they offer. For relatively…
Cybersecurity Insurance is the best present! Heather Turner, digital managing editor of NU Property Casualty 360, provides us with 10 digital tips for a secure holiday shopping season. “The advent of the digital age transformed the way we shop — especially for…
Third-Party Vendor Problems Third-Party data breaches are becoming the normal. Partnering with a third party often requires sharing confidential and sensitive information. Too often, cyber security is ignored when companies are looking to secure business relationships. It is important to…
On the brink of another insurance crisis for drinking water not containing lead? A September article from the Insurance Journal explains this next public health issues and discusses the General Liability insurance and Environmental Liability Insurance: ‘Drinking water: a commodity…
While costly and dangerous, data breaches aren’t the biggest threat to businesses from hackers on the radar for this year. The first half of this year alone has seen an uptick in the frequency and severity of attacks that have…
Do Hackers Pose a Threat to Design Firms? When most people picture a target for hackers, a design firm is usually not at the top of the list. Most often people picture a bank or law firm or doctors…
Is your Property Insurance prepared for disasters? Are you? September is National Preparedness Month, is your insurance prepared? Property Casualty360 contributor, Heather Turner, advised: “Recent events have been a sobering reminder at just how destructive hurricanes and storms can be….
Cyber Attacks – Are We Becoming Immune? Cyber attacks seem to be happening more often these days. These data breaches occur almost daily exposing email addresses, passwords, credit card numbers, and other highly sensitive information. Unfortunately, most of us don’t…
The 3rd Edition of Risk Management and Contract Guide Over 300 pages of commentary on risk management and contracts. Written by attorney, J. Kent Holland, based upon his knowledge and experience from over 20 years working with design professional contracts,…
CYBER SECURITY CYBER ATTACKS – are you next? CYBER ATTACKS seem to be happening more and more frequently these days. One reason is because we as individuals and businesses are becoming forever reliable on technology. We love the speed and convenience…
Indemnification Clause A properly worded indemnification clause is critical to reducing risk in a construction contract. An indemnification clause may include any, or all, of three distinct obligations, including to (1) indemnify, (2) defend, and (3) hold harmless the client. …
CYBER INSURANCE MARKET UPDATE 2019 By Aubrey Gene | July 09, 2019 at 12:00 PM – Presented by National Underwriter PropertyCasualty360 Historically, buyers of cyber coverage have been large organizations in industries like health care, finance and retail. Makes sense, right? They store…
CYBER COVERAGE It takes only one cyber event or data security breach to impair your company’s financial results, or even potentially put you out of business. One resourceful hacker, virus, or system glitch can shut down your entire network within…
Avoiding the Nonpayment Quagmire The one true way to truly sour a great project is to endure the headache of a fee dispute at the end of the project. Most firms will experience this truly aggravating process at least once…
Sub Consultants Under Prime Contract of Architects It is often argued if it is a good idea to have sub consultants under the architecture firm of the project? There are two schools of thought on this and your firm has…
Quality Project Management for Architects and Engineers This is a busy time of year for architects and engineers; every client wants their project designed now so they can get under construction during the summer and fall. It is important to…
E-Scooter Sharing Programs – Insurance Risks Burns & Wilcox, national insurance broker, published this article regarding expanding use of e-scooters (electric scooters) . They talk about the inherent risk to the e-scooter sharing companies but no mention of the ‘driver’ being…
2019 Risk Management Seminar – Denver Our Denver seminar was yesterday and was a great success! Contracting for projects large and small. Barb Sable from RLI Insurance Company and Benton Barton with Hall & Evans, LLC both presented. The topic…
Vicarious Liability for Subconsultants If a firm has professional liability insurance from CNA, its policy defends the firm against allegations of its negligence and pays on its behalf if the firm or its employees are found to have performed professional…
Suggested Wording to Use When Revising and Redlining Design Professional Contracts for Risk Allocation and Insurability of Risks Both parties (owner and contractor) and other project stakeholders come out ahead when the construction contract is fair. The contractor, subcontractors, and…
Contract Commandments for Design Professionals The Ten Commandments of Design Professionals’ Contracts (Vol,2) by Matthew C. Ryan. Navigators provided this great article in their March 2019 issue of BluePrint for Design Professionals. First off, “Don’t Make It Personal: If you’ve…
Pre-Claim Assistance on Professional Liability for Architects/Engineers What is pre-claims assistance and why should my firm use it? Pre-claim assistance is a program that most Professional Liability insurance companies provide. The insurance company will pay for reasonable fees, costs and…
Hired and Non-owned Automobile Liability for Architects/Engineers Also referred to as HNOA, this coverage can be found in your business owner policy or package policy. Hired auto means any auto you lease, hire, borrow or rent. Non-owned auto refers to…
Named Insured vs. Additional Insured on an Architects/Engineers General Liability Policy What is the difference between being a named insured and an additional insured? There are several differences when it comes to the General Liability policy. First named insured has…
Contracts for Architects and Engineers Contracts are a vital prior to the start to a project and the strength of that contract is equally as important. While most attorney’s and insurance companies say it is better to have something in…
Space Heater Fires – Are You Covered? Travelers Insurance provides helpful information in their safety article, if you have space heaters in your office. If you are renting a building or a suite your Business Liability insurance provides coverage for ‘Damages…
Who is Responsible for Job Site Safety? This seems to be an age old debate and the cause of many claims in the design professionals industry. Last August, Bruce Furukawa, Esq., of Furukawa Buccieri LLP, updated a newsletter originally written…
What should my sub consultants have for insurance on a project? The general answer to the question is that your sub consultants should carry the same limits of liability and policies that your architecture/engineering firm is required to carry on…
Liability When Not Prime on the Project Does my firm have liability if we are not the prime on a project? This question is asked quite often and the answer is yes. Just because your firm is not the prime…
Important Clauses to Pay Close Attention To in the Architects and Engineers Professional Liability Policy Yes it can be a lengthy policy to review but when renewing your policy or comparing policies here are a few key areas to review…
Blockchain and the Design Professional What is Blockchain? The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Per Victor O. Schinnerer: The design…
A-E Contract – Know It! It is important to not only negotiate contracts with your client but equally as imperative to know your contract throughout the project. Many times the person negotiating the contract may not be the same person…
Are contracts important for architects and engineers? Many times it may seem like just because the project is small you don’t need a contract. Or my firm works for this client on a regular basis and we trust them. Or…
Manage Injured Worker Claims Through Additional Insured Status A very informative risk management article from Victor O. Schinnerer relates to having the contractor name the design professional as an Additional Insured under their General Liability coverage. They write “Construction operations…
Managing the Risks of a Vacant Home A home is “vacant,” as defined by the courts, if it does not contain enough furniture for a resident to reasonably live there. So, according to that definition, a home could be considered…
Risk of Being a Construction Manager While the terms construction management and construction manager (CM) encompass a broad range of potential services and roles within the project delivery process, the ways in which a CM defines and carries out services…
Condo Project Risks for Architects and Engineers Condos in Colorado are being built more often than in the recent years however; they are still area of high risk. Some of the laws have changed in specific cities throughout Colorado but…
Cyber Insurance Myths Putting your Business at Risk! Lack of education, emerging risks, and inconsistent policy language sow confusion in the cyber market. Two CNA experts debunk common but dangerous myths and offer facts in their article for Risk &…
JOB SAFETY a/e ProNet August Newsletter talks about The Never-Ending Challenge of Job Safety. Click HERE to read the August newsletter.
What Does Cyber Liability Cover? The complexity of information systems in today’s marketplace can be just as daunting as the risks to the data handled by these systems. However, common causes of loss are being identified, making it easier to…
Things to Consider Before Using Your Personal Vehicle for Work Many of us work for a company or are small business owners that require we go above and beyond the normal show up, work, and go home routine. You may…
CYBER INSURANCE GROWTH While cyber insurance offerings have expanded recently, the ability to keep up with demand for cyber insurance cover is a continuing challenge, and sustainable growth in the cyber insurance market should not be taken for granted, according…
Employment Practices Liability Insurance High Risk of Testing Applicants According to Travelers Insurance RiskManagement Plus+ Online article it appears another employee practice that should be instituted is careful testing of your applicants to avoid insurance claims. The EEOC sued Ashley…
Not carrying insurance on your vacant commercial building? It could cost you more than just losing the rents. According to Burns & Wilcox, a leading insurance broker, ‘each year, vacant commercial buildings experience more than $500 million in fire…
Risk Management Resources Available to Architects and Engineers Your firm may have risk management practices within your firm it is always a good idea to look outside of your firm for additional information. Here is a list of some suggestions…
Risks for Design Professionals 1. Contract Language – Poorly written contracts and ambiguous language can expose firms to unintended Risk. It is a good idea to send your contract in question to your agent to…
Do you, as the Insured, have a right not to file a claim, by a third party, on your insurance policy? Actually, no, unless you want to forfeit your insurance coverage. Guess whose pocket the costs will come out of…
Fleet Safety Are your drivers prepared for an accident with a company truck? Having a plan in place can help keep drivers safe and prepared to capture important information at the accident scene. An accident response plan can also help your company…
Spring Webinar Spring is upon us (at least calendar-wise) and Great American Insurance Group would like to invite you to their spring webinar. On April 25th 1PM (Eastern) Great American Insurance Group is hosting Kent Holland of ConstructionRisk LLC to…
2018 Risk Management Seminar for Architects and Engineers – Denver, CO Thank you to all who attended, it was a successful program. Also, thank you to the presenters Benton Barton with Hall and Evans and Barb Sable with RLI…
Online Cyber Risk Index Chubb Insurance Group has used their 20 years of commercial insurance cyber claims data to create an online cyber risk index which shows the threat for cyber losses for companies based on their size and the…
Contracts for Architects and Engineers A contract for Architects and Engineers is the first step before your firm starts a project. It can be difficult to think about the contract when the main objective is designing the project. The contract…
9 Key Elements of a Data Security Policy While the conversation around the water cooler may be about the latest cyber breach, protecting your data against cyber attacks requires much more than words. Walk the talk to help protect your…
Engineering on the Margin: Practical Considerations for Avoiding Litigation Architects and engineers have enough to worry about while designing their projects that the thought of a claim is sometimes the last thing on their minds. Further to that, the thought…
Design Professionals earn your continuing education credits, HSW, AIA approved for 4 learning units. Hear from Jim Case of Kerr Russell and Weber law firm regarding the 2017 changes to the AIA and EJCDC contracts, real life war stories and Sarah Chambers…
Need Continuing Education Credits? THIS FREE 4 HOUR PROGRAM IS REGISTERED WITH AIA/CES FOR 4 LEARNING UNIT HOURS AND QUALIFIES FOR HEALTH, SAFETY, AND WELFARE You and the members of your firm are cordially invited to attend the 28th annual…
Report Workers Compensation Claims ASAP Reporting workers compensation claims in a timely manner is important. While late reporting of workers compensation claims by the employer does not affect the employee’s benefits, it often causes issues with claims handling process and…
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…
Agree to Comply? Did you know that your insurance could be compromised if you agreed to comply with all laws, rules, and regulations? As with most design professionals liability insurance there is an exclusion for claims based on or arising out…
“Contractors Insurance Requirements – A Primer” Commercial insurance for a general contractor is different than the insurance that a subcontractor needs to carry. Really?? Many owners, generals, construction managers don’t realize the importance of requiring insurance ‘apples to apples’. In this AmWins…
Waiver of Subrogation What is waiver of subrogation on insurance policies for Architects and Engineers? Waiver of subrogation is a contractual provision where your firm agrees to limit the rights of its own insurance carrier. The insurance carrier would not…
Contractors Professional Liability Insurance Trends Contractors Professional Liability insurance policies are increasing in number. Due to the increase in the proposed spending plan for our infrastructure the insurance coverage provided under this Professional Liability policy is becoming more attractive…
Limitation of Liability in a Contract for Design Professionals A limitation of liability provision in a contract is one in which a Design Professional and client agree to limits the liability of the Design Professional. It is common to have…
When should my design firm report a claim on a Professional Liability policy? This can be a tricky question because not all answers are straight forward as to when to report a claim. The most obvious answer is when you…
Who is an insured under a Professional Liability policy for Architects & Engineers? This will be defined differently with each specific insurance company. Be sure you read the policy and understand the definition and how it relates to your firm. …
Understanding Statutes in Colorado for Design Professionals The construction defect statutes are defined as follows: The statute of limitations operates to bar claims when a period of time has passed after the claim has arisen or an injury has resulted. The statute…
The importance of risk management in your design firm – Nobody wants to be involved in a claim, it is stressful and time consuming. The best way to try to elevate claims is to have good risk management practices in…
INSURANCE RATES Commercial Insurance rates can be affected by losses. Workers Compensation insurance costs can be affected by employee injuries. General Liability insurance costs could be affected by injuries to persons other than employees. Commercial Excess/Umbrella insurance costs can be…
The Importance of Having a Contract on Projects as Design Professional While it might seem tedious to have a contract on every project, no matter how small, it is important. Contracts provide both the project owner and Design Professional the…
Risk Management Resources for Design Professionals Many Professional Liability insurance companies and outside resources have risk management information for Design Professionals. It is best to check with your insurance carrier to find out what they do have available. Here is…
Claims Statistics for Design Professionals It is important to know claims statistics and information in order to help your firm with risk management. The more your firm knows what happens with claims the better you can protect your firm against…
FLOOD INSURANCE Business Property Insurance doesn’t cover it, homeowners insurance doesn’t cover it, renters insurance doesn’t cover it. It’s the time of year where flood insurance could be very important to your wallet. Business Property Insurance doesn’t cover it, homeowners insurance…
NEW CYBER THREAT! Advisen Cyber Insurance reports that a new meme is making the rounds on Facebook and could be a threat to your online security and privacy. A request to list 9 concerts you attended and one a ‘fake’ and…
Cyber Coverage In Depth – Third Party In continuation from last week’s post regarding First Party Cyber Coverage, this week we’re going to focus on Third Party Cyber Coverage. In our litigious society, businesses can expect a myriad of reasons…
Cyber Coverage In Depth – First Party In a world where thousands of data breaches occur every year, it’s critical to know where you could best protect your business with regard to network and cyber security. The most immediate concern…
Spring Home and Business Maintenance | Travelers Insurance// // The milder days of spring are a perfect time to do a thorough spring cleaning and perform home maintenance. After a long winter, it is a good idea to spend time on…
CYBER SECURITY and SENSITIVE DATA Unfortunately, the likelihood of a cyber attack on your business is no longer an “if” but a “when” scenario. Most, if not all, businesses use technology to varying degrees of severity in their everyday operations….
Cyber Coverage Last year marked the second-highest record for business data breaches: 781. In order to properly protect you, your business, and your employee and client data, you need to understand the different type of Cyber Liability coverage available. …
Ransomware Claims (and Ways to Prevent Them) A large portion of Cyber related claims are due to a type of software called “Ransomware”. It’s a type of malware (or malicious software) that allows itself to be installed extremely easily on…
CE Credits Earned at our FREE SEMINAR REGISTER HERE 2017 Professional Liability Seminar for Design Professionals Please join us at one of the following locations: GRAND RAPIDS – March 22nd TROY – March 23rd Registration: 7:30 a.m. Seminar: 8:00 a.m….
Slip and Fall Accidents Slip and fall accidents can be very costly for any business, whether they involve your employees or someone else legally on your premises. Each year these accidents result in thousands of workers’ compensation or…
FREE SEMINAR to all that register- 2017 Professional Liability Seminar for Design Professionals Registration is in full swing! Click HERE to send yours in now. Don’t procrastinate, it will only take you a couple minutes to do. Then you’ll be…
Risk management for your Design Professional Firm Risk management is important for your firm to minimize claims and it may help with your Professional Liability premium as well. Below is a list of items to review in your risk management…
Condo projects are making an emergence again all over the country but as a design firm it is important that you are cautious. Some laws have changed in some jurisdictions to help with claims on condos but we don’t yet…
Cyber Insurance 101 There is a hot new topic in the insurance industry, and it is Cyber Insurance. By now, surely you know or know of someone who has been involved in some sort of Cyber attack. Whether it…
Reviewing contracts as a Design Professional is an important part of the business. It allows your firm to assess the risk and negotiate on contracts if needed. While it is good for your firm to review and understand the contracts…
Records retention for design firms is a very important part of your business. If the project were to have issues or even go as far as a claim being filed the records are your firm’s defense and beneficial for your…
Holiday Claims This time of year if for celebrating with family and friends. What is often overlooked is the potential for accidents and negligence during the Holiday Season. Most of us will join together with our family and indulge in…
Auto Insurance Needed! Collision shops love this time of year. Foggy mornings and early darkness contribute. Did you know that in 2015, in Oakland County alone, there were 1,873 auto accidents involving deer; with 70 injuries (not including the deer!) and…
Fall is a good time of the year to assess your risk management program in your Design firm. Projects are winding down for the winter and it doesn’t seem to be as busy as it was all summer long. Take…
CYBER ATTACKS – are you next? CYBER ATTACKS seem to be happening more and more frequently these days. One reason is because we as individuals and businesses are becoming forever reliable on technology. We love the speed and convenience of it…
Cyber Insurance – Hijacked video recorders ATTACK Advisen Front Page News from CRC Swett, insurance broker, reported “attackers used an army of hijacked security cameras and video recorders to launch several massive internet attacks last week, prompting fresh concern about…
Do You Have an Effective Risk Management Program in your Office? Every firm has a different approach to risk management, because every firm has different needs for risk management. One of the best ways to assess your firm’s approach to…
Risk Management resources for Design Professionals are at your fingertips. Your firm is at risk every day in all of the business activities, it is imperative to manage the risk. There are numerous resources available to your firm: Attorney –…
Document Retention We are often approached by our clients asking how long is the appropriate length of time to retain certain documents. One of the most common questions is: “How long should we keep our emails?” The best practice is…
Risk management tips for Design Professionals. Below is a list of tips that can help with your risk management program at your firm: -Good contracts – reviewing the contract at your firm and knowing what your firm is getting into…
Malpractice or Negligence by Design Professionals? What Constitutes “Malpractice or Negligence” by the Design Professional? Unless there is a specific modification in the contract, a Design Professional is required to perform in accordance with the “Standard of Care”. The Design…
Cyber/Data Breach Insurance provides coverage to help pay the costs of notification. Michigan and 46 other states have ‘Notification Laws‘ in the event of a breach. Rectification of a breach is going to cost you money. Data information covered by the law:…
Cyber Liability Frequently asked questions How is my company at risk? Hackers can gain access to your system through compromised wifi networks or lost/stolen laptops and cell phones. Phishing or social engineering attacks, via email, that direct you to a…
Cyber Liability: Will my insurance pay the ransom? Does your business insurance provide coverage if your system is kidnapped and your digital information is held hostage? Will your business insurance provide coverage if a former employee decides to take revenge by…
Continuing Education Credits can be earned at our upcoming seminar – Professional Liability for Design Professionals. This seminar is registered with AIA/CES! Click HERE to REGISTER TODAY! GRAND RAPIDS, MI – March 16th TROY, MI – March 17th Mark your…
The Use of a Well-Written Contract as an Important Risk Management Tool BY, ANDREW J. CARLOWICZ, JR. Travelers * Is a claim being asserted against you and your firm? Are you a defendant in a malpractice case? Are you…
INSURANCE CLAIMS OR INCIDENTS – Ensure the fastest possible response to your insurance claim or incident Reporting insurance claims or an incident (a situation that very well could turn into an insurance claim) as soon as reasonably possible is of…
How Effective is Your Risk Management Program? Many design firms attend risk management training sessions and implement certain practices based on an industry trend or project claim. Other firms may only concentrate on contracts and insurance coverage’s as a risk…
CYBER SHOPPING As the holiday season approaches, please be aware of the risks involved while shopping online. Pay attention to the following cyber shopping tips from the FBI (www.fbi.gov). Beware of unsolicited (spam) emails. Don’t respond, and don’t click on…