Covered by Architect's Liability Insu...

Log Out | Topics | Search Moderators | Register | Edit Profile

Author Message David G. Axt, CCS, CSI ,SCIP Senior Member Username: david_axt Post Number: 1934 Registered: 03-2002 Posted on Wednesday, June 22, 2022 - 07:47 pm:    I know some of you believe that you will be covered by the Architect's liability insurance. Well I had an incident a few months back where a subcontractor threatened to sue me (long story). The architect then promptly stepped back and said that the issue was between me and the sub. Luckily the issue got resolved, I did not get sued and I dropped the architect as a client. So don't go around believing that your client will always protect you. They may, but I recommend that you protect yourself....in case your client decides to throw you under the bus. David G. Axt, CCS, CSI, SCIP Specifications Consultant Axt Consulting LLC Guest (Unregistered Guest) Unregistered guest Posted on Thursday, June 23, 2022 - 01:12 pm:    I have PLI policy...and my broker has said that "additional insureds" (e.g., subconsultants) cannot be added to PLI policies. So even though some may think (or have written into their agreements) they are "covered" under A/E's coverage, they are really not; have you ever noticed that prime agreements with public entities do not require naming public entity as "additional insureds" to PLI policies...only to general liability policies...maybe they realize they can't require something that can't be provided? Even with insurance coverage, if/when litigation starts to "fly", it will be everyone for themselves; it's naive to think your client will "lookout for you" when it's either your neck or theirs! Besides isn't it the reason you DBA as an LLC? To better protect your personal assets? Your LLC may go bankrupt but hopefully your personal assets won't be attached? If I may ask, would you "sleep better" if you did "bite the bullet" and pay for PLI? I sure do. Phil Kabza Senior Member Username: phil_kabza Post Number: 713 Registered: 12-2002 Posted on Friday, June 24, 2022 - 09:30 am:    David: Thank you for your post. New consultants need to hear this. And Guest: Very good points. I enjoy a good relationship with a local AE liability insurance specialist agency. They have us placed with RLI at a reasonable cost with no deductible - it seems these folks understand our role as a technical consultant to the AOR. Phil Kabza FCSI CCS AIA SpecGuy Specifications Consultants www.SpecGuy.com phil@specguy.com Mark Gilligan SE, Senior Member Username: mark_gilligan Post Number: 974 Registered: 10-2007 Posted on Saturday, July 02, 2022 - 04:19 pm:    I think a key question is the specification writer a design professional who stamps and seals his work or does the specification writer make recommendations to the architect who freely decides to incorporate the recommendations into his work. John Bunzick Senior Member Username: bunzick Post Number: 1881 Registered: 03-2002 Posted on Sunday, July 03, 2022 - 04:32 pm:    I think that Mark has an interesting take. And along these lines, can an independent specifier have a clause in their contract with the architect that says they are not to be considered a "professional" in this context? If this exists, would it make any difference in a lawsuit? If it exists and there is no specifiers insurance, and the specifier has no significant assets, would such a lawsuit go anywhere? An example that is somewhat similar is the "interior designer" who is not licensed and provides primarily services regarding finishes and the like. Are they liable to be sued in such cases? How can they carry professional liability insurance if they are no considered "professionals" by law (in states where that is the case)? Phil Kabza Senior Member Username: phil_kabza Post Number: 716 Registered: 12-2002 Posted on Tuesday, July 05, 2022 - 08:22 am:    We do incorporate such a clause in our services agreement with Architects, or require they add this to a contract drafted by them. Anyone can sue anyone. The cost of getting out of an unjustified or inappropriate lawsuit can be significant. A few thousand dollars for PLI insurance seems like a good deal. Phil Kabza FCSI CCS AIA SpecGuy Specifications Consultants www.SpecGuy.com phil@specguy.com Jeffrey Wilson CSI CCS SCIP Senior Member Username: wilsonconsulting Post Number: 339 Registered: 03-2006 Posted on Tuesday, July 05, 2022 - 12:12 pm:    Specifiers can have liability regardless of whether they are acting in the capacity of design professional. Something as simple as a typo that causes a claim is the direct responsibility of the specifications consultant. There are other types of liability associated with our services where we can be considered at fault. Although my agreements contain a clause deferring responsibility for decisions that are in the province of the architect, this will not protect me from errors that I might make. This alone justifies carrying liability insurance in my view, but many of my clients require it anyhow -- many in response to requirements of their clients. My practice would be cut by a substantial portion if I did not carry the insurance. Jeffrey Wilson CCS CSI SCIP Wilson Consulting Inc Narberth PA David G. Axt, CCS, CSI ,SCIP Senior Member Username: david_axt Post Number: 1939 Registered: 03-2002 Posted on Tuesday, July 05, 2022 - 04:26 pm:    I do not believe there is any way for a specifier to defend themselves by saying, "Hey I worked on the project but am not liable for my work." In the real world EVERYBODY gets sued. Then the lawyers sort out who is responsible for what percentage. Here is a video on the $1.2 BILLION dollar settlement for Surfside Condo project. https://www.youtube.com/watch?v=lXBtvov3DLg David G. Axt, CCS, CSI, SCIP Specifications Consultant Axt Consulting LLC Nathan Woods, CSI, CCCA, LEED AP Senior Member Username: nwoods Post Number: 867 Registered: 08-2005 Posted on Tuesday, July 05, 2022 - 09:02 pm:    Wow, that video was very interesting. Amazing that the engineering firm that accurately reported the conditions and predicted the failure felt compelled to pay $16M in insurance money for the settlement. I kinda hate this world that requires insurance, but having insurance makes you a target. And what's worse is that insurance companies elect to settle, and just raise everyone's rates to pay for it. They never learn to stand up and fight these things, because the legal process is so inherently broken, no one needs to take accountability for anything. As a society, we are learning the exact wrong lesson and punishing the wrong people. Sigh....