Know Your Limits — The Consequences of Being Underinsured
Read moreMost professionals, including engineers, understand that claims are one of the inevitable costs of doing business. Engineers buy professional liability insurance to ensure that the cost of defense, settlement, and/or liability associated with a claim will not fall predominately on their shoulders.
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Know the Limits of Your Contract
In Construction, Contracts onRead moreGeneral contractors and developers rarely have insurance covering construction defect claims, and they regularly become insolvent and/or judgment proof after a project is completed. Because of this, homebuyers often attempt to expand the duties of design professionals beyond those imposed by common law or agreed to in a contract.
Effective Ways to Handle Claims
Read moreWhen claims surface during an ongoing project, engineers are often under pressure to act quickly in order to prevent further damages. However, acting too hastily may jeopardize their insurance coverage. It’s imperative for the engineer to report claims to their professional liability insurance carrier immediately.
How Document Retention Could Save You
In Documentation onRead moreA professional’s inability to produce important evidence during a lawsuit alleging negligence may result in sanctions. State law determines whether spoliation of evidence may result in sanctions, and the nature of any sanctions imposed against a party who fails to preserve important evidence can vary greatly by state.
Getting to Know Your Retroactive Date
Read moreThere are typically two initial timing requirements that must be met in order for there to be a potential for coverage under your professional liability (PL) insurance policy. The first requirement is that the claim must be first made (i.e., received by the insured) during the coverage period.
A Closer Look at Your Reporting Requirements
In Claims, Documentation onRead moreAll professional architects and engineers risk having claims brought against them in relation to their work. Some claims may have merit. However, some professionals can get caught in a wide net cast by a claimant trying to recoup unexpected losses, regardless of actual fault.
How to Avoid Uncovered Exposure
Read moreAlmost all professional liability (PL) insurance policies are written on a claims-made basis. It is important to understand the claims-made nature of your PL policy, as it is a fundamental aspect of your insurance coverage.
The Truth About Tolling Agreements
In Claims onRead moreA "tolling agreement" is "an agreement between a potential plaintiff and a potential defendant by which the defendant agrees to extend the statutory limitations period on the plaintiff’s claim, usually so that both parties will have more time to resolve their dispute without litigation."
What You Need to Know About Liability Clauses
In Contracts onRead moreMany architects and engineers incorporate a limitation of liability clause into their contracts. A limitation of liability clause is exactly what it sounds like: a clause that limits your liability in the event of a claim. Limitation of liability clauses establish "a contractual ceiling on the amount of damages to be awarded if a plaintiff prevails in later litigation between the contracting parties."
