ASCE Member Insurance Blog

Claims Retrospective: The Risks in Providing Professional Services to a Party Engaged in Litigation

Posted on 11/6/2017 by ASCE Insurance in Liability Engineers Claims

Requests for professional engineering services by a party already in litigation are not unusual and can present unique challenges. The parties embroiled in litigation are more likely to be emotional, frustrated, upset and/or defensive about the subject project, and pursuing a rational resolution may be clouded by the parties' intransigent positions. The engineer already has some indication that the parties may be difficult to work with, or are generally litigious, so taking precautions to reduce risk is important.

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Professional Corporations Do Not Always Protect Licensed Engineers From Liability

Posted on 8/25/2017 by ASCE Insurance in Liability Licensing Engineers Claims

By Sarah A. Johnson, Esq.

One of the purposes of creating a corporate entity is to limit the liability of those individuals involved with the corporation. Engineers often believe the professional corporation will protect them from liability, in other words, the corporation is liable, not the individual. Unfortunately, that is not always the case.

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Claims Retrospective: Identify and Document the Work You're Hired to Do—and Not Do

Posted on 8/25/2017 by ASCE Insurance in Documentation Claims Engineers

It is not unusual to discover problems outside a project's scope of work that may adversely affect the outcome, especially when the project involves an aging building or the property around it. Nor is it uncommon to find clients who do not wish to pay for remedying these "other" problems. It is always advisable to document all recommended work for a project, including other deficiencies, as well as any direct instructions from the client. To illustrate this point, the following real-world example provides a context for further explanation and discussion.

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Jurisdictions Where the Economic Loss Doctrine Bars Extra-Contractual Claims Highlight the Importance of Well-Drafted Contracts

Posted on 6/15/2017 by ASCE Insurance in Claims Engineers

By Sarah A. Johnson, Esq.

The economic loss doctrine is the legal principle that economic loss may not be recovered under a negligence or tort theory.1 “Economic loss” has been defined as damages for inadequate value, cost of repair and replacement of a defective product, or the consequent loss of profits, as well as the loss of value of the product due to its inferior quality.2 The theory behind this doctrine is that a purchaser’s wish to reap the benefits of his bargain is not an interest protected by tort law.3 Rather, the remedy for economic loss relating to the purchaser’s disappointed expectations properly lies in contract.4

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Claims Retrospective: Subrogation Demystified

Posted on 6/15/2017 by ASCE Insurance in Claims Engineers Insurance

Meticulous Engineer was hired to do the calculations for the demolition plans in connection with the renovation of Old Warehouse. The drawings indicated that part of Old Warehouse was to be demolished and a small addition was to be added to the remaining part of Old Warehouse. Unfortunately, Destroy Contractors, the demolition contractor, did not follow the demolition plans, causing a collapse to part of Old Warehouse that was intended to be restored and reused.

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Claim Retrospective: Clients’ Unauthorized Use of Plans and Drawings or Seal and Stamp

Posted on 3/9/2017 by ASCE Insurance in Claims Liability Clients Documentation

Unfortunately, clients commonly use engineers' plans and drawings on subsequent projects without the engineer's permission. Even worse, clients have altered engineers’ plans and drawings before using them in subsequent projects, again without the engineer's approval. Shockingly, clients have even used an engineer's seal and stamp without their authorization.

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Claim Retrospective: The Significance of a Global Settlement in Multi-Party Litigation

Posted on 10/6/2016 by ASCE Insurance in Claims Contracts

Why can’t we settle the claim? The answer is often that we cannot obtain a global settlement. Unfortunately, such an answer is not always easy for engineers to understand. As you might imagine, the more parties involved in the litigation, the more difficult it can be to get everyone to agree on a resolution.

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Know Your Limits — The Consequences of Being Underinsured

Posted on 6/9/2016 by ASCE Insurance in Claims Liability Coverage

Most professionals, including engineers, understand that claims are one of the inevitable costs of doing business. Engineers buy professional liability insurance to ensure that the cost of defense, settlement, and/or liability associated with a claim will not fall predominately on their shoulders.

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Effective Ways to Handle Claims

Posted on 4/15/2016 by ASCE Insurance in Claims Liability

When claims surface during an ongoing project, engineers are often under pressure to act quickly in order to prevent further damages. However, acting too hastily may jeopardize their insurance coverage. It’s imperative for the engineer to report claims to their professional liability insurance carrier immediately.

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Getting to Know Your Retroactive Date

Posted on 12/17/2015 by ASCE Insurance in Claims Coverage Insurance

There are typically two initial timing requirements that must be met in order for there to be a potential for coverage under your professional liability (PL) insurance policy.1 The first requirement is that the claim must be first made (i.e., received by the insured) during the coverage period.

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