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 have the carrier review it for any insurability issues. You should also have the contract reviewed by your local attorney.
2. Projects Outside Expertise – Taking on a project where the firm has limited experience or expertise can increase overall project risk.
3. Consultants – Without proper screening for financial stability or an understanding of project expectations, sub-consultants can negatively impact a job. You should also make sure your sub-consultants are carry the appropriate insurance coverages.
4. Sustainable Design – ‘Green’ buildings require specialized expertise in order to achieve the desired environmental impact without increasing liability
5. Client Selection Process – Clients under financial duress may not pay on time and are more likely to sue. Having a screening process in place can also give you credits when applying for professional liability insurance with some carriers.
6. Data Theft – Sensitive intellectual property related to building designs, especially public projects such as bridges, can be stolen by criminals looking to wreak havoc. Please contact your Professional Underwriters Inc., agent for a quote or contact us here.