Introduction The architecture and design industry is at a critical juncture. Climate change poses escalating risks to the built environment and the people who occupy it, prompting the need for immediate, proactive, industry-wide action.
Read MoreTopic: Professional liability
2023 Trends in Professional Liability Insurance
The AIA Trust together with the American Council of Engineering Companies (ACEC) and the National Society for Professional Engineers (NSPE) work annually to conduct an insurance carrier review and interview of professional liability trends and risk management issues. The following are some highlights for 2023 as well as complimentary useful resources made available to you by the AIA Trust.
Read MoreAvoiding fee disputes
Architecture firms should take the time to establish meaningful fee collection practices so that they can remain financially solvent. Avoiding fee disputes with clients helps maintain positive working relationships while safeguarding the ability to provide services on future projects, including those of existing clients. Timely collection of fees is essential since architecture firms do not…
Read MoreProfessional Liability Safety & Other
Bridging the gap: Navigating the risks and mitigating claims in construction contract administration services
Introduction In recent years, the design industry has experienced a significant disparity in experience levels among the workforce in the field of construction contract administration (CCA) services. With a visible gap between junior staff (1-5 years of experience) and senior staff (10+ years of experience), many firms are finding themselves in a conundrum, compelling less-experienced…
Read MoreMoonlighting and Volunteer Services
The Victor and CNA professional liability insurance program does not recommend specific language on “moonlighting.” That is because the situations vary so greatly. The key is for an architecture service firm to have a workable provision in an employee handbook. There are very few instances where an employer is held liable for the actions of…
Read MoreEmbodied Carbon Reduction in the Built Environment
Earlier this year, the US passed the Inflation Reduction Act of 2022, with $369 billion in funding intended to cut climate pollution in half by 2030 (from 2005 levels). The private sector is also embracing capital-allocation strategies that take environmental, social, and governance (ESG) issues into account with their business practices. Over the next few…
Read MoreProfessional Liability Insurance: 2022 Trends
The AIA Trust together with the American Council of Engineering Companies (ACEC) and the National Society for Professional Engineers (NSPE) work annually to conduct an insurance carrier review and interview of professional liability trends and risk management issues. Following is a summary of highlights for 2022 in addition to complimentary useful resources made available to…
Read MoreProfessional liability: Sharing risks with humans, not technology
Professional liability underwriters and risk managers are often asked how risk and professional liability changes for design firms using advanced digital technologies (such as generative design, DfMA (Design for Manufacturing & Assembly), VR/AR, BIM, Digital Twins, etc.). The simplest answer is that humans manage all technologies and the liability question and associated risks stop right…
Read MoreProviding Pro Bono Services
Whether or not professional services are provided for a fee or on a complimentary basis, the professional liability risks are the same. Professional liability insurance coverage is also the same, even though no premium is calculated on the value of the free services provided. The general rule is that a professional performing voluntary services must…
Read MoreThe Effect of Economic Conditions on Insurance Rates
In today’s environment, when material prices are unpredictable, inflation is rising, claims are increasing, and disputes take much longer to resolve, that prediction of the cost of future claims becomes more uncertain. Learn how construction-related professional service firms may face certain future exposures, and how insurers must anticipate and prepare for losses from those exposures.
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