What to include when developing a risk management program at your architecture/engineering firm-
First and foremost, no matter the size of your firm, it is good to have a risk management program.
The first piece of the risk management to have in place is a strong contract. If your firm is using your own contract, be sure that is drafting by a local attorney. If it is your client’s contract, ask your attorney to review the contract for legal issues and the insurance company to review the contract for insurability. Your firm may also be using a professional association contract, which are typically good contracts. The point is, use some form of a written contract.
Included in your contact, if possible, a limit of liability clause. In many cases this helps your firm to limit the amount of liability that you may be liable for in a case against your firm.
Attending risk management seminars with all staff is always a good tool in a risk management program. The more you and your staff are educated the better. There are several risk management programs available, either self-paced, in person or online.
Peer reviews are always a great risk management resource. It puts a second set of eyes on the project from someone outside of your organization. It may bring up items that may arise out of a project and be taken care of before it becomes a larger issue.
There are several other loss prevention tools that can be used in a risk management program. Such as a quality control program, a client selection process, and a project selection process. These should be written processes to avoid any conflicts within your organization.
If your firm has any questions with regards to a risk management program in your design firm please call or email your Professional Underwriters agent for assistance.