We too have two separate corporations, one for the construction and one for the design, and separate insurance. We too believe this works well, but although we've been using this structure for 10 years+, it is actually untested as we have not been in a lawsuit. My limited experience in disputes is that one should try to settle right away and not even go to arbitration, mediation, or court as that always costs more than it's worth in time and energy and money. If a lawsuit transpires, one would do well to note that the insurance companys' goal is to settle for what they consider will be the least amount out of pocket for them and they will bring anyone into the case they want to -- it often has little to do with the merits of the situation.
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Buzz Tenenbom AIA
CTA Design Builders Inc.
Seattle WA
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