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.
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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."
How to Memorialize Your Scope of Services
Read moreRecent claims have revealed that a number of engineers have not been memorializing the scope of their services in writing, either in a written contract or even in a written work order. While this may not be problematic if the project proceeds smoothly, projects often involve complications and issues, leaving the client/owner dissatisfied with some aspect of work.
He Said/She Said is Not a Good Plan
In Contracts, Documentation onRead moreThe specter of litigation will never instill peace of mind, but engineers are wise to implement document retention practices to prepare for the moment we all hope will never come. If you find yourself facing a lawsuit, the documents that you provide to your attorney will serve as the foundation of your defense.
Putting the Pieces in Place for Licensing Proceedings
Read moreThere has been an increase in the number of licensing proceedings being pursued against engineers. If you receive any correspondence from your local or state licensing board, you should immediately provide notice of the licensing proceeding to Underwriters via Pearl Insurance for coverage under your Professional Liability Insurance Policy.
