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 MoreTopic: Risk
Contractual and professional exposures when considering design-build
On most design-build projects, architects provide their services through a design-build entity—rarely do they lead the process. The design-build method changes the role of the architecture firm, modifies its duty of loyalty, and challenges the firm’s responsibility for the adequacy of the design. In the hundreds of design-builder/architect contracts reviewed by Victor Insurance Managers for…
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 MoreDo you know? Virtually everything can go wrong!
Welcome to the “new normal” – a seemingly alternate universe where working in an office has become burdensome and employers and employees alike are often at odds as to what a work-life balance looks like. As if the practice of architecture wasn’t complicated enough, our post-pandemic reality challenges firms to adjust to a remote workforce…
Read MoreThe consultant behind the curtain
Conventional wisdom dictates that all successful construction projects have a great team. The project team is typically viewed as being the Client, Architect, and Contractor. However, other seldom discussed yet equally vital members of the team, are the Owner’s financial partners, which includes Lenders and Investors, along with their Construction Consultants.
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 MoreNavigating the Risks and Exposures of Artificial Intelligence: Essential Insurance Coverage for AI-Related Claims
Artificial intelligence is transforming industries and streamlining processes at a dizzying pace. There’s a lot we don’t understand about AI, including the risks and exposures inherent in incorporating AI into our businesses and lives.
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 MoreDo you know? Key Factors in Developing an Internal Risk Management Process
From choosing your client to closing a project, your firm can take measured steps towards managing its risk. While unpleasant, the terms “insurance” and “litigation” have taught us how to better protect design firms by minimizing claim potential, or at least to develop stronger defenses if claims cannot be avoided.
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…
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