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Title Substituted Material
Subtitle An architect was retained to design a residential property. Based on the contractor’s recommendation, the architect agreed to a product substitution for exterior fixtures even though the architect had no experience with this product. Years following occupancy, the owners issued a claim against the architect alleging that the product, as specified, failed and was intended specifically for interior use only. As the only design professional retained, the architect was held to a higher standard of care than the contractor and faced considerable exposure for the costs associated with repairs.

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Title 50 Years
Subtitle ENCON introduced professional liability for architects and engineers almost 50 years ago.

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Title Lien and Counterclaim
Subtitle An architect of a commercial property filed a lien against the property in an attempt to recover outstanding fees from the project owner. The owner issued a counterclaim alleging negligent design. The owner also brought the architect into a pre-existing lawsuit alleging that the architect failed to meet the terms of the construction management contract and directed work without written approval.

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Title Engineering Design Approval
Subtitle An engineer approved design changes based on abutment foundation materials used in the building of a small bridge, which resulted in partial destruction of one abutment foundation after a heavy rainfall. The engineer was sued for the under-design of the bridge.

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Title A&E Practice, Project and Small Firms Claims by Claimant
Subtitle Professional Liability for Architects & Engineers
Adjacent Landowner 1%
Commercial/Developer 3%
Contractor 12%
Injured Person 3%
Insurance Company (by Subrogation) 3%
Other 7%
Owner (Private Sector) 47%
Owner (Public Sector) 17%
Prime Consultant 3%
Private/Individual 3%
Subconsultant 1%
Subcontractor 1%

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Field Value
Title A&E Practice, Project and Small Firms Claims by Allegation
Subtitle Professional Liability for Architects & Engineers
Design Error 52%
Other 16%
Inspection Error 8%
Supervision Error 6%
Horizontal Measurement 3%
Difference in Conditions (Soil/Water/etc.) 3%
Improper or Insufficient Check of Documentation 3%
Lack of Information/Incorrect Information Provided 3%
Disputes Over Extras/Change Order 2%
Vertical Measurement 2%
Misc./Multitude of Problems 2%
Faulty Specification 2%

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Field Value $0 to $500,000 $500,001 to $2,000,000 $2,000,001 to $5,000,000 $5,000,001 and up
Title A&E Practice - Limit Profile by Fee Range
Subtitle Professional Liability for Architects & Engineers
X-Axis Title Limits
Y-Axis Title Policy Count
$250K 141 9 0 0
$1M 1696 247 63 56
$2M 480 135 51 20
$3M 2 0 0 0
$5M 116 9 15 32
$10M 7 0 0 6

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Field Value $0 to $500,000 $500,001 to $2,000,000 $2,000,001 to $5,000,000 $5,000,001 and up
Title A&E Project - Limit Profile by Fee Range
Subtitle Professional Liability for Architects & Engineers
X-Axis Title Limits
Y-Axis Title Policy Count
$1M 1 0 2 0
$2M 1 6 1 0
$5M 0 7 7 4
$10M 0 0 1 7
$15M+ 0 0 0 1

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Field Value
Title Indemnity vs. Defence Costs
Subtitle Professional Liability for Architects & Engineers
Defence Costs Only 63%
Indemnity Including Defence Costs 37%

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Field Value Settlement Type
Title Average Defence Cost per Claim
Subtitle Professional Liability for Architects & Engineers
X-Axis Title Settlement Type
Y-Axis Title Canadian Dollars ($)
Claims With Defence Costs Only 13307
Claims With Indemnity Paid 57508
Blended for all Claims 29501