Practice Management Member Conversations

I'm getting through the start-up process of my own firm and am trying to figure out what insurance policies/coverage other local (Maine) design/build firms carry...  My insurance broker is having trouble finding coverage for the "paper GC" portion of my business which in effect is the Build in Design/Build.  I'm willing to not offer design/build services for the time being but am curious what others have for insurance.

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Michael Pednault, AIA, NCARB
Alliance-DCM, LLC
Windham, ME
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Michael:

I have not done design build but may have a general suggestion for your research. We use a brokerage company out of the DC area which offers policies nationally. They are truly remarkable in their services. They have attorneys who will review the insurance portions of contracts, they offer cont ed seminars...in office if you want it and most importantly, review my firm each year, discussing strategies for keeping rates reasonable and they shop rates very aggressively. This year we had to contact RLI on an issue for a consultant and the attorney I spoke with at the insurance company said he knew them well and felt they did the best ob of any brokerage firm with whom he had he worked. I am certain it would be worth your time to even just give a call to get some background info on the issue. If you are interested drop me an email and I will send you their contact information. npoole@2pa.net

Good luck with your endeavors!

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Nea Poole AIA
Principal
Poole & Poole Architecture, LLC
Midlothian VA

If you are going to support your GC business with architecture, then you should get blanket coverage that includes E&O for design services. One such policy I'm aware of allows for a maximum 10% of overall construction value to come from design services. If you are primarily an architect and occasionally plan to build, I would advise two separate policies. One strategy would be to only purchase the construction liability when you need it and charge it to the project.

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Gordon Rogers AIA
EAS Department Executive
Kitchell CEM, Inc.
Phoenix AZ

Original Message:
Sent: 05-31-2016 18:02
From: Nea Poole
Subject: Design/Build Insurance Policies?

Michael:

I have not done design build but may have a general suggestion for your research. We use a brokerage company out of the DC area which offers policies nationally. They are truly remarkable in their services. They have attorneys who will review the insurance portions of contracts, they offer cont ed seminars...in office if you want it and most importantly, review my firm each year, discussing strategies for keeping rates reasonable and they shop rates very aggressively. This year we had to contact RLI on an issue for a consultant and the attorney I spoke with at the insurance company said he knew them well and felt they did the best ob of any brokerage firm with whom he had he worked. I am certain it would be worth your time to even just give a call to get some background info on the issue. If you are interested drop me an email and I will send you their contact information. npoole@2pa.net

Good luck with your endeavors!

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Nea Poole AIA
Principal
Poole & Poole Architecture, LLC
Midlothian VA

We carry Professional Liability - Errors and Omissions - for the design side of our practice and a General Liability Policy to cover the build side of our Design/Build operations.

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Martin Sell AIA
President
RKETEK.COM, LLC
Albuquerque NM

I am a design/build architect; I carry normal Professional Liability along with a General Contractors GL policy; Allied and Cincinnati are the two GL insurers I have had policies with.  I would recommend splitting your company into two separate LLC's one for the design and one for the construction.  The AIA Design/Build contracts have the contractor hiring the architect.

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Thomas Roof AIA
President
TXR Architects + Constructors
Sunrise Beach MO