As an architect or engineer you are expected to provide quality services and produce error-free work on a daily basis. Such precision is obviously important in such a highly skilled industry, but despite your best intentions, some mistakes or misjudgments are bound to occur.
Unfortunately, when they do, even the smallest error can have serious consequences. Clients could sue you or your company, and in addition to paying to defend yourself in court, you would also be responsible for potentially extensive restitution costs if found at fault.
As such, here are some ways to manage the risk and minimize errors and omissions claims:
Professional Liability Coverage
First and foremost, architects and engineers can protect themselves with professional liability insurance coverage. In the event of a claim, this policy will cover the cost of defending you in court and any monetary damages awarded to the claimant if you are found at fault.
However, just purchasing coverage is not enough. You will also need to engage in effective risk management as well as report claims on first knowledge.
Reporting and responding to claims immediately by developing an appropriate response plan can ensure that you have the best chance of a favourable outcome.
Response Plan
Your best risk management defence is to craft a very specific plan for responding to errors and omissions (E&O) claims. The following elements should be addressed in your plan:
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The cost of defending yourself in court can be huge, not to mention the restitution costs if you’re found at fault. Therefore, having proper professional liability and vicarious liability policies in place will help cover these costs in the event of such claims, which may otherwise financially cripple your business.
Download our free guidebook “Avoiding Vicarious Liability from Subpar Subconsultants” here to get all the details on how you can further protect yourself from liabilities: