Welcome to the Clark Insurance A&E Newsblog
FMI: Gregg Ritter, Susan Nason, Stacy Karem, Bret Cote
The following material is provided for informational purposes only. Before taking any action that could have legal or other important consequences, speak with a qualified professional who can provide guidance that considers your own unique circumstances.
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April 2012
CAD Capabilities and Liabilities Evolve
Advances in Computer Aided Design (CAD) may have improved your ability to serve clients but it also has changed expectations and exposure to liability. This article, in two parts, addresses these challenges and how you can minimize your exposure.
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February 2012
Comprehensive Scope of Services Boosts Bottom Line
The absence of a clear and comprehensive scope of services is a major cause of disputes, claims and counterclaims between design firms and their clients. FULL TEXT
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October 2011
Avoid those verbal contracts:
Handshakes Can Present Risks for Everyone
Sometimes an environmental consultant and client can indeed iron out a project conflict with a quick conversation and a handshake. But rarely does that happen when there is a lot of money at stake. All of a sudden, that trusted client isn't quite so amicable and he or she doesn't remember that verbal agreement quite the same way as you do. ... FULL TEXT
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April 2011
The added responsibilities of doing construction management:
A risk management perspective
During a slow economy, design firms are often in search of additional revenue streams. Many consider offering construction management services. Providing such services cannot only generate new income, it can increase the value a design firm delivers to its clients.
Keep in mind, however, that providing construction management services brings additional liabilities along with the added income. These new liabilities are the types typically assumed by contractors and are likely not covered by your professional liability..... Read more
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January 2011
25 Questions: Measuring Your Risk Management IQ
1. Recent court decisions have made Limitation of Liability clauses virtually unenforceable. True or false?
2. Contractor led design-build projects are not necessarily any riskier than a traditional design-build project delivery method. True or false? Read on ...
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December 2010
The Essentials of Negotiating a Limitation of Liability Clause
A limitation of liability (LoL) clause can be one of the most effective risk allocation tools available to design firms. However, these clauses can also be among the most difficult to negotiate with your client and, depending on your jurisdiction, one of the most contested once applied. Therefore it is crucial that any LoL clause be carefully drafted in a fair and equitable manner that is likely to hold up to a challenge in court.
While courts generally do not favor limiting someone's liability for their own negligence, they will uphold LoL clauses when they are fair, reasonable and mutually agreed to by parties with equal bargaining power and ample opportunity to negotiate. Note that these agreements will not apply to any third parties to a dispute. Read on ...
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October 2010
Typically, a project owner demands that the contractors, design professionals and environmental consultants it hires have ample insurance to provide coverage against major project upsets and losses. Some go so far as to demand minimum insurance limits from subcontractors and subconsultants as well.
It is not uncommon for project owners to also insist that they be an "additional" or "named" insured on the contractor's general liability policy. This is a sensible step to ensure that the owner receives optimum protection in the event of a jobsite accident resulting in property damage or bodily injury.
Some owners go a step further. They ask their design and environmental consultants to make them additional insureds on their professional liability policies. They reason that if it's a good idea to be named an additional insured on a GL policy it must be an equally good idea to be named an additional insured on a PL policy.
But in truth, being named an additional insured on a PL policy can actually reduce your client's protection and increase its liability should a claim be filed on your PL policy ... Read On
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FMI: Gregg Ritter, Susan Nason, Stacy Karem, Bret Cote
