• Welcome to The Building Code Forum

    Your premier resource for building code knowledge.

    This forum remains free to the public thanks to the generous support of our Sawhorse Members and Corporate Sponsors. Their contributions help keep this community thriving and accessible.

    Want enhanced access to expert discussions and exclusive features? Learn more about the benefits here.

    Ready to upgrade? Log in and upgrade now.

E & O Insurance

You should be covered under the ahj you work for. Next issue only the personal things you own are able to be taken in the event of a law suit. They also have to win. If you are married and own something in joint ownership it would not be subject. E&O insurance is getting steep.

What is your fear?
 
Architects and engineers have personal liability because of their professional license. I would suggest that building officials and plans examiners do not necessarily have the same personal liability exposure. Thus I would suggest that you would not be personally liable unless they werecriminally liable and in which case your insurance might not cover it.

I will suggest that currently there is little need for building officials and plans examiners to need this insurance. As more and mor individuals obtain E&O insurance their will be mor law suits in an attempt to get this money. This is what happened with architects and engineers.
 
our local code indemnifies me as long as I notify within 7 days of receiving a personal suit. Barring local law that indemnifies you, I don't know that they would have to do so. Laws vary across states, so it might be work talking to somebody about. I wouldn't be happy iwth a "don't worry, we'll cover it" response, I would want to see where it says they will.
 
I was looking at starting a 3rd party agency here in PA. Labor & Industry requires the insurance, I was just shopping around, very preliminary...

Thank you all!
 
As a third party agency performing plan checks you might be considered to be practicing architecture or engineering and thus have to be licensed. You will no longer have the legal protection that a agency employee would have.

As a third party agency your clients may require that you have E&O insurance coverage.
 
RShuey,

The way things are going with local governments not being able to keep staff; there seems to be plenty of room for more 3rd Party companies to contract the Building Safety Departments; especially in small to middle size communities.

A lot of States that have Building Code Commissions allow cities to contract out their inspection department.

Good Luck,

Uncle Bob
 
Last edited by a moderator:
Building Officials are often statutorily protected under the government employee indemnity (with some exceptions).

Stand alone inspection services is a different issue. Architects and Engineers typically are NOT government employees when they engage services to the public. Architects & Engineers have professional liability NOT because of license but because they are commercially engaged in providing service(s) to people for remuneration. Drivers have insurance because they drive. Architects and Engineers have insurance to cover costs of errors and omissions because of decision in case of a lawsuit based on negligence/tort. Building Designers ALSO have liability and they do have insurance especially if they are designing non-prescriptively. In Oregon, I can face lawsuits of tort/negligence based on E&O and other Professional Liability when I am the designer of responsible charge.

If I was a consultant to an Architect, some indemnification would be in place because A) I am not engaging in practice of architecture and B) The Architect is by law the responsible party for practice of architecture and C) I won't engage in the practice of Architecture without an architect and D) I want no liability to the Architect's service and E) I want to protect myself because it is the Architect's responsibility to make sure the work is properly reviewed before he/she stamps the work and I'm not taking any share of liability even if it is in part my fault, the architect is suppose to catch it. Just like an employee.

However, when I design a building (under the exemptions) for a client, I have ultimate responsibility just like the Architect would. If you take charge, you have the responsibility of that charge. Simple.

Hence the saying - Architect/Engineer of Responsible Charge or in my case - Building Designer of Responsible Charge. It is legal theory by contractual law that the "Contractor" (generally not just Construction Contractor) assumes responsibility for the service the "Contractor" provides. Architects, Engineers and Building Designers are "Contractors" (ie. INDEPENDENT CONTRACTOR) not just Construction Contractors which is also commonly called Contractors for short.
 
You must log in or register to reply here.
Back
Top