May 17, 2022
Professional Indemnity Insurance Part 2
This is the second in a two-part series on Professional Indemnity Insurance (PII). This post will provide more details and provide some case studies. The Main Exclusions of Professional Indemnity Insurance fraudulent or international acts contractual liabilities express warranties and guarantees time and cost overrun non-compliance with building regulations costs of redesigning plans, specifications, or schedules construction damage if designers are within the same legal entity as the Contractor cross-liability, if not otherwise agreed fines and penalties loss of profit, lack of performance (entrepreneurial risk) asbestos gradual pollution The Premium Basis of Premium Calculations The Premium rate depends on: type of covered activity nature of the project type of service(s) experience of the Architect/Engineer total fee income contract value territory claim experience limit of indemnity insurance duration, retroactive period and extended reporting period Case Study 1 An…
May 5, 2022
Professional Indemnity Insurance Part 1
An Overview of Professional Indemnity Insurance Professional Indemnity Insurance (PII) policies protect against legal liability and pay damages arising out of negligence and performance of professional duties. Professionals such as doctors, legal professionals, Chartered Accountants, Architects and Engineers (A/E), etc. are covered by PII. Risks are classified into three broad groups. For doctors, professional negligence may result in bodily injuries. Whereas, for auditors and accounts, professional negligence may result in financial losses. As far as architects and engineers are concerned, the risks associated with professional negligence may result in material damage and/or bodily injury. So, the basis of liability is negligence. For professionals, there exists a duty of care. Negligence is the breach of that duty and the loss or damage caused by that breach. In terms of the professional indemnity for architects and engineers, during the design phase, exposure arises due to error,…
December 10, 2021
Progress Reports – stick to the facts
One way Contractors can cause themselves difficulty with claims is by not being completely truthful in progress reports to the Employer’s team. It can be tempting to report good news and an inexpert Consultant may even believe such reports because good news will save them work. The problem with this is that even if the Contractor is entitled to an extension of time, it will be difficult for him to later ask the Employer’s team for that entitlement after repeatedly denying there was any delay to the completion date. Progress update, as-built programme, or updated programme - whatever you call it, it is created by using the latest agreed programme, converting the planned start and finish dates and the percentage progress for any activity started but not finished to actual dates up to the data-date of the update. The logic contained in the programme and the programming software will then predict the completion date based on progress to date. Before specialising in contractual matters and…
October 13, 2021
A New Era for Claims Class
For nearly ten years, Claims Class has been offering training on construction contracts and claims to professionals around the world. Over the years, the catalogue of courses has expanded as has the delivery methods from in-person to online to live online. Some of these courses have also provided an alternative training route to ICCP membership for a number of claims practitioners. As Andy Hewitt moves toward retirement, Claims Class is also transitioning to a new era. Claims Class will now fall under Hewitt Decipher Partnership (HDP) and while Andy will still be taking an active role in training and course development, Managing Director of HDP and current ICCP President, Paul Gibbons, will be overseeing Claims Class.