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 practices at your firm.
Written contracts – Is your firm getting written contracts on all projects? Written contracts include professional association contract (AIA), client drafted contract, your firm’s standard contract, letter agreement and purchase order.
Limitation of liability provision – Is a limitation of liability provision included in your contract? This can be beneficial when it comes to claim time that this provision is written into the contract. This provision limits the dollar amount your client may be able to acquire at claim time.
Sub consultants – Is your firm getting written agreements with your sub consultants? Also, is your firm working with sub consultants that carry a Professional Liability insurance policy? These are both important factors when working with sub consultants.
Risk management seminars and continuing education – Are employees up to date on continuing education and attending risk management seminars? These are both valuable to help in building strong risk management practices.
Quality control procedures – Does your firm have in-house quality control procedures in place? This is to make sure that the same procedures are being used for every project.
Client/project selection process – These are both important to know who you are working with and that your firm has an expertise on the project type. Your firm doesn’t want to get in a position of being unfamiliar with either.
These are a few tips to be aware of when you are thinking about risk management for your firm. Please call or email your PUI Agent for any questions you may have.