An HVAC subcontractor sued the prime general contractor for $2 million for delays, acceleration, and related impacts that it asserted were caused by the actions of the contractor.
For design professionals, finding the right insurance broker can present a challenge. You need someone with ample experience handling the professional liability needs of architects and engineers, and who offers a wealth of value-added services. Only if your broker has a comprehensive understanding of what you and your firm are all about can he or she be of real use to you.
The use of broker-verification questionnaires has been a growing trend seen most commonly in the context of construction insurance. In attempting to secure a contract, it is becoming increasingly common for project owners to request that brokers complete questionnaires wherein the broker is asked to verify whether the client’s policies meet the contractual requirements, contains specific exclusions, etc.
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 management strategy, which only addresses a portion of an effective risk management program. As they say – “you cannot manage something that is not measured.”
Engineering firms often take jobs that knowingly expose the firm to legal risk. But how much risk is too much? That’s a question that more and more engineering and design firms are asking when confronted with contracts that contain controversial “Duty to Defend” language.
In the last 20 years, regional and smaller design firms based in the U.S. have found a new demand for their services in the international marketplace. Foreign clients now seek the services of boutique firms and specialty consultants, and what was once the sole domain of large design firms is far more common. This article will discuss the international liability exposures (except for professional liability) faced by architects and engineers who provide services abroad.