Notifiable Situations

Reviewed Feb 2017 incorporating May 2014 and othersYour policy provides not only cover for claims made during the policy period, but for claims that arise from circumstances occurring during the policy period. Circumstances that could give rise to a claim are those which a reasonable architect in the same position as you would fairly and reasonably consider might end up with a claim being made against the firm.Not every dispute on a building site or every dispute over fees will be circumstances that could give rise to a claim; but if you are in receipt of information, oral or written, which criticises the firm’s work in a material way then those are circumstances which could give rise to a future claim and should be notified to your insurer.The “claims made” nature of your Professional Indemnity (PI) policy means that the policy can change from year to year, and can do so in a material way. Ensure that you notify to get the best cover available at the time. It may avoid potential heartache and cost at a later stage.If after a review of your circumstances you think you may be “at risk” then you should notify a claim – or at least contact the Claims Committee – so that you can seek some feedback before continuing. This may be helpful in establishing your position, and your client’s options. There is no harm in a chat, and often it resolves the issues and/or confirms that you were already on the right track.Hence the use of the term “potential claim”: whether it matures into an actual claim or not may not be known for some time. If it looks likely to mature, then prudent measures can be taken to minimise the impact, and the information will be at hand to deal with it. If the problem “goes away” (and many of them do) then the file can be closed, and no harm is done.Accordingly, Members should notify a potential claim:

• when an actual claim is made against them
• when they become aware of the likelihood of a claim against them,
• if they learn of circumstances which may lead to a claim against them.

Examples are:

• Where a Member discovers the office has made a mistake, even though no one else is aware of it.
• Where another member of the team (another consultant or the contractor, say) alleges that the Member has made a mistake.
• Where a problem arises with design work under taken by another consultant, but which the Member coordinated.
• Where the contractor claims its delay is due to the late receipt of information (not the result of changed client instructions).
• Where the client contacts the Member some time after the building is completed regarding a latent defect.
• Where a dispute arises between other parties on the job.
• Where the client makes a joke about suing you for a particular reason.
• Where the client refuses to pay your fee.
• When you learn that an independent report has been sought on defects and remediation
• If you notice unusual repair work being done on the building, and suspect that it might be in relation to a design or construction defect.
• If you get a letter from the client or their lawyer indicating that remediation is (or has been) required and that you should inspect/co-operate in your own best interests