{"id":891686,"date":"2017-03-02T12:25:25","date_gmt":"2017-03-02T19:25:25","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=891686"},"modified":"2017-03-02T12:25:25","modified_gmt":"2017-03-02T19:25:25","slug":"agree-use-professional-best-may-lose-insurance-coverage-law-note","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/agree-use-professional-best-may-lose-insurance-coverage-law-note\/","title":{"rendered":"Agree to Use your \u201cProfessional Best\u201d ? You may lose Insurance Coverage! (Law Note)"},"content":{"rendered":"<p>Melissa Dewey Brumback | <a href=\"http:\/\/constructionlawnc.com\/2017\/02\/24\/professional-best-insurance\/\" target=\"_blank\">Construction Law in North Carolina<\/a> | February 24, 2017<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-4857\" src=\"https:\/\/i2.wp.com\/constructionlawnc.com\/bwh-wp\/wp-content\/uploads\/2017\/02\/mistakes.jpg?resize=300%2C242\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" srcset=\"https:\/\/i2.wp.com\/constructionlawnc.com\/bwh-wp\/wp-content\/uploads\/2017\/02\/mistakes.jpg?resize=300%2C242 300w, https:\/\/i2.wp.com\/constructionlawnc.com\/bwh-wp\/wp-content\/uploads\/2017\/02\/mistakes.jpg?resize=150%2C121 150w, https:\/\/i2.wp.com\/constructionlawnc.com\/bwh-wp\/wp-content\/uploads\/2017\/02\/mistakes.jpg?resize=768%2C620 768w, https:\/\/i2.wp.com\/constructionlawnc.com\/bwh-wp\/wp-content\/uploads\/2017\/02\/mistakes.jpg?w=769 769w\" alt=\"mistakes\" width=\"300\" height=\"242\" \/>Yesterday, I was part of a panel at the NC Bar Association Construction Law Winter Meeting, discussing insurance issues for\u00a0design professionals.<\/p>\n<p>One topic we touched on was how to avoid invalidating your insurance.\u00a0 As most of you know, Errors &amp; Omissions insurance (\u201cE&amp;O\u201d coverage) \u00a0is meant to provide coverage for mistakes you may make in performing your professional architecture or engineering services.\u00a0 E&amp;O\u00a0coverage is important to protect you in the\u00a0event of a lawsuit because, as you know,\u00a0no set of plans is perfect (nor is perfection the standard of care).<\/p>\n<p>Be careful, though.\u00a0\u00a0Do not promise to provide\u00a0a higher standard of care than the \u201cprofessional standard\u201c.<\/p>\n<p>If you are asked to sign a contract\u00a0that states you will use your \u201cprofessional best,\u201d \u201cbest efforts\u201d, \u201chighest care\u201d or similar, you are being asked to sign something that\u00a0could cost you your\u00a0E&amp;O coverage.<\/p>\n<p>Examples of such language:<\/p>\n<blockquote><p>[Architect] [Engineer] shall perform the Services in accordance with the highest standards of professional competence in the industry.<\/p>\n<p>[Architect] [Engineer] shall exercise a high degree of care and diligence in providing the professional services.<\/p>\n<p>Architect\u2019s] [Engineer\u2019s] services shall be of first class quality and free from defects.<\/p><\/blockquote>\n<p><strong>E&amp;O policies cover you for failing to meet professional standards, but not in cases\u00a0where you agree\u00a0by contract to provide a higher\/better\/best standard.\u00a0<\/strong><\/p>\n<p>Explain the risks in such language to your owner clients.\u00a0 No owner will want to put your insurance policy in jeopardy, and they should be willing to strike\u00a0or modify that language to ensure that your work on the\u00a0construction project is fully protected\u00a0and covered by your E&amp;O policy.<\/p>\n<p>Some examples of coverable standards:<\/p>\n<blockquote><p>All services to be performed shall be performed in a manner consistent with that level of care and skill ordinarily exercised by members of Designer\u2019s profession.<\/p>\n<p>All services shall be performed in a manner consistent with that level of care and skill ordinarily exercised by members of Designer\u2019s profession currently practicing in the location of the project for which the services are rendered, or similar locations.<\/p><\/blockquote>\n<p>Remember this, and <strong>make sure your future construction contracts contain favorable language<\/strong> that will actually be insurable.\u00a0 You know\u2013 the whole reason you have professional liability insurance in the first place!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Melissa Dewey Brumback | Construction Law in North Carolina | February 24, 2017 &nbsp; Yesterday, I was part of a panel at the NC Bar Association Construction Law Winter Meeting, discussing insurance issues for\u00a0design professionals. One topic we touched on was how to avoid invalidating your insurance.\u00a0 As most of you know, Errors &amp; Omissions&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/agree-use-professional-best-may-lose-insurance-coverage-law-note\/\">Continue reading <span class=\"screen-reader-text\">Agree to Use your \u201cProfessional Best\u201d ? You may lose Insurance Coverage! (Law Note)<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9009,9914],"tags":[9895,8795,8701,23],"class_list":["post-891686","post","type-post","status-publish","format-standard","hentry","category-design-professionals","category-insurance-coverage","tag-advise-consult","tag-design-professinals","tag-errors-omissions-insurance","tag-insurance-coverage","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Agree to Use your \u201cProfessional Best\u201d ? 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