Louis:
First question is did you personally sign the drawings? If not then you have nothing to worry about you are not directly involved in the insurance. If you did sign them, first bit of advice going forward is if you do not have an ownership position NEVER sign drawings. Liability goes with the signature. If you leave a company you still have liability but may not have the umbrella of their insurance.
Either way when an issue that could lead to an insurance claim comes up, even just could, always alert the insurance company. Most big ones have realized than when issues get contentious it is in their (the insurance folks) and their client's best interest for the client to have the advice of an attorney so they get you a specialist attorney in the right state to help you navigate the traps. Most policies DO NOT CHARGE for this help unless a claim is settled in the case in which case you pay the deductible. It is the best service ever. Additionally most insurance policies can be considered voided if there is an issue that the insurance company is not made aware of as early as possible.
I deal with all contract/claims/insurance issues at my firm. I have incredible brokers and I would be happy to tap their general knowledge for you if you have specific questions just send me a PM.
Finally, for what it is worth, no set is perfect and at some point most architects will face a problem involving insurance whether or not it is their fault. It is scary but not crippling; after all this is what insurance is for. The first time I did it was a MEP problem but the owner had to sue us to get to them. I lost so many nights sleep...I wish someone had told me then that in the end, it will be ok. So I tell you, you will be ok.
Best.
Nea
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[ Nea May] [Poole] AIA
[Principal]
[Poole & Poole Architecture, LLC]
[Midlothian, ] [Virginia]
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Original Message:
Sent: 09-11-2020 17:08
From: Louis Edwards
Subject: Material Breach - Future Implications
I am co-AOR for a institutional project and in the midst of construction our client had given our company a letter stating that we've incurred a Material Breach over items that were apparently missed in the design phase. We're pushing back against this however I am unsure how this can eventually pan out in the future. I suspect that if we lose the fight the Error-&-Omissions insurance will be tapped.
I am an employee of the firm and don't have any partnership role. In the event that E&O is tapped would this be on my 'record' in the future if I decide to move on from my current employer? I worry that premiums for my future insurance will increase. Has anyone had faced this situation or have any insight?
Thank you,
Louis
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Louis
Dallas, TX
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