Posted on: October 27, 2017 by Huntersure LLC.
As part of the professional services industry, design firms face an onslaught of risks when it comes to potential client concerns, contracts, and more. Whether the firm is low on resources or is struggling to stay in business, risk management should remain at the forefront of priorities. As an agent and experienced broker, remind your clients of these critical downfalls that lead to increased Design Firm Insurance claims within the industry.
When it comes to hammering out contracts, design firms may believe that it is the owners’ way or the highway in the current environment. Sure, it may be tempting to bend on contract language, especially when competitors are, but there are some contractual areas where the stakes are just too high. Chief among these are indemnification provisions. Design firms should never acquiesce to language that leaves them with a duty to defend owners in claims. If they do, they could be obligated to defend a matter for which they had no responsibility – and have no insurance coverage, says Insurance Journal.
The notion of going green is here to stay. While designers want to incorporate green elements into their work, it’s important not to overpromise, especially when it comes to LEED certification. The United States Green Building Council solely awards LEED certification and many elements of the building’s particular efficiency categories and rankings are out of the designer’s hands. Therefore, designers should refrain from promising specific green savings and outcomes.
After payment has been submitted to the contractor, any disputes with the quality of work will fall back on the designer. Before submitting payments to any contractors, ensure the work was done to scale, code, and standards that were set forth by the contract.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (646) 751-3030 to learn more.