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  • 1.  Professional Liability-Per Project

    Posted 07-05-2011 11:45 PM
    This message has been cross posted to the following Discussion Forums: Practice Management Member Conversations and Small Project Practitioners .
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    Can anyone recommend a broker and/or underwriter that provides professional liability insurance on a per-project basis?  Thanks.

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    Jason Sheets
    Principal Architect
    MODA4 Design
    Dayton OH
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  • 2.  RE:Professional Liability-Per Project

    Posted 07-06-2011 08:07 AM

    Jason,
    In the past I have spoken with XL Insurance about per-project liability insurance but they advised me it was only feasible for very large projects.  The estimated values were in the tens of thousands of dollars.

    Regards,
    Paul
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    Paul Bielicki AIA
    Project Architect
    McCarty Holsaple McCarty Inc.
    Knoxville TN
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  • 3.  RE:Professional Liability-Per Project

    Posted 07-07-2011 09:07 AM
    We have occaisionally purchased project specific insurance, generally as an add-on to our basic professional liability policy. You probably should talk to your broker. We have had good results with Wortley-Poole in Philadelphia.

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    Jerry Roller AIA
    Firm Owner/Architect
    JKR Partners
    Philadelphia PA
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    Original Message


  • 4.  RE:Professional Liability-Per Project

    Posted 07-06-2011 12:32 PM
    Your current broker or underwriter should be able to find it for you (just as our broker currently is doing for a project for us -- entire project team, duration of construction, plus a two-year tail).

    Mike Webber
    Michael A. Webber
    CFO
    The Portico Group

    Architects ' Landscape Architects ' Interpretive Planners ' Exhibit Designers

    1500 4th Avenue, 3rd Floor
    Seattle, WA 98101 USA
    T 1-206.621.2196 ' C 1-630.732.5423

    www.porticogroup.com




  • 5.  RE:Professional Liability-Per Project

    Posted 07-06-2011 02:17 PM
    Project policies went out of favor after a period in the mid 1990's where many carriers lost fortunes on them.  Unfortunately, many A/E firms sought reimbursement of premiums from owners and Owners thereafter viewed the project policy as a sort of "slush fund" that would cover any cost overruns.  A&E coverage in the form of a project policy is really for a third party - the Owner - which effectively meant there was no pressue on a carrier to settle claims and they often spent  all or most of the the money on defense costs if the A/E did not force a settlement as they would under their traditional PLI coverage (not to mention a host of other problems).  A few carriers write them again today after a long hiatus, but they are expensive and problematic in many of the same regards.

    Many carriers do offer what is called Owner's Protective coverage (OPPI) for the construction project owner on a specific project basis, which supplements the A&E primary policies as opposed to replacing them as project insurance does.  OPPI is a first party indemnity contract that pays based on an established third party liability loss, that which arises out of the owner's subcontracted A&E professional services excess over the available primary A&E insurances or a pre-determined self-insured retention.  An OPPI policy often also includes third party liability defense coverage in the instance the owner incurs a loss from a third party attributable to the negligence of it's A&E's.

    These sorts of arrangements cover the Owner for losses the A/E may cause, but only as a supplement to the traditiional A/E PLI, rather than instead of it.  It is far cheaper, it is intended to afford coverage similar to that of a project policy without all of the difficulties those policies engendered.

    Take a look at those sorts of things.  They may work well for your situation.


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    Frederick Butters FAIA
    Attorney
    Southfield MI
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