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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.
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