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O P I N I O N
Coverage extensions
Review and understand any new or enhanced supplemental coverages available under your policy and note those most timely and valuable to your firm.
D esign firms may want to double-check their professional liability insurance policies for valuable added protections. Increased competition has led some leading PLI insurers to enhance their policies with supplemental coverages to address a wider array of risks confronting design professionals. What’s more, they’re generally available without any additional premium.
Wayne Marshall GUEST SPEAKER
Here are five popular and timely supplemental coverages currently available under some PLI policies: 1)Claim prevention assistance. This coverage, also known as “pre-claim assistance,” gives design profes- sionals the chance to report circumstances that may become claims early in an effort to resolve them before they actually become claims. No deductible applies and insurers may assign legal counsel to help resolve the situation or avoid a larger exposure. This might apply to many situations, such as if a firm is served with a subpoena for records. When the request relates to professional services, most insurers will assign legal counsel to evaluate the breadth of the information request and push back if it is overly broad. They’ll assist with document exchange, assess the pending dispute and whether your firm is likely to get drawn into it, as well as how to position your firm to minimize potential risks.
Pre-claim assistance also can help when an owner or contractor attempts to unilaterally change your de- sign without your consent. Often, such changes are either contrary to the design professional’s intent or increase risk by raising health and safety concerns. Reporting these situations to your professional li- ability insurer on a timely basis allows the insurer’s claims professional (or pre-claims counsel) to help your firm navigate through the issue. Correspon- dence detailing the owner – or contractor – directed change typically is needed to document the situation and protect against potential liabilities. Be sure to follow the policy’s reporting requirements, including giving the insurer sufficient detail for a preliminary evaluation of the circumstance. 2)Rectification/mitigation coverage. This supple- mental coverage may apply when you identify a
See WAYNE MARSHALL, page 12
THE ZWEIG LETTER April 2, 2018, ISSUE 1242
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