NEW YORK CITY—Guiding you through risks and potential underwriting perils, Lance J. Ewing of AIG provides his market-spanning insights. A recipient of the Risk Manager of the Year for Business Insurance and Risk Innovator of the Year awards, Ewing is an internationally recognized authority on insurance, risk management, crisis management and risk financing, among many other insurance and risk-related subjects. At AIG, he serves as the leader for Hospitality and Leisure, as well as the Real Estate Industry Practice Groups.

Have a question for the Insurance Leader? Ask him about it by clicking here.

Dear Insurance Leader,

I'm a developer of multifamily residential. My architect asked me just yesterday about protection for condo design so that he can feel safe with delivering a design, and won't break his budget. He has historically delivered drawings for for-rent, only but is considering the for-sale market today. What, if any, new programs are available for architects?

—Alan D., California

Dear Alan D.,

The basic coverage's for an Architect would be Professional Liability (also known as errors and omissions) and General Liability.

Most professional exposure risk comes from negligence in the performance of professional services. Most often the claimant's damages are manifest in one of the following ways:

Cost to correct insufficient or improper design specifications for the application
Delay in construction, due to insufficient or improper design
Construction cost overruns caused by insufficient or improper design

Insurance coverage under professional liability may provide coverage for pre-claims (ADA, FFHA, etc.); a defined explanation as to professional services; a blanket additional insured status for clients; joint ventures, innocent insureds; ownership interest coverage; and other risks. The American Institute of Architects (AIA) has a Risk Management Committee that may also be of benefit.

Instant Insights /

Drawing Down a For-Sale Risk

Related Stories

Recommended For You