In every professional services agreement, architects assume not only professional risk but also commercial exposure through the contract language they accept. Client-generated agreements often contain onerous cost-recovery provisions that exceed a firm’s normal legal liability in the provision of professional services. Few contracts are truly balanced, fair, or structured to support a productive working relationship.
Professional liability claims are an inherent risk in practice. In any given year, approximately one-quarter of design firms insured through the CNA professional liability insurance program experience a claim alleging harm arising from the negligent performance of professional services. While only about one-third of these claims result in an insurance payment to address a cost, loss, or damage, every claim requires significant time and resources, affects firm profitability, and can impact reputation.
This webinar will provide insight into the legal foundations of professional liability claims and analyze key statistics and trends, including who brings claims against architects. It will also explore strategies firms can use to protect their assets and remain viable by managing risk—particularly through thoughtful contract language and the purchase of professional liability insurance. The discussion will reference the language of standard AIA agreements as tools to help mitigate both professional and contractual risk.
Speaker:
Frank Musica, Professional Liability Risk Advisor, Victor insurance Managers LLC
About the Speaker:
Frank Musica, Esq., is a Professional Liability Risk Advisor with Victor Insurance Managers LLC. Frank is a graduate of the School of Architecture of the University of Notre Dame. In addition to his professional degree in architecture, he holds a Masters in Business Administration and a law degree. Prior to returning to graduate school, Frank worked in small architecture firms in Chicago and, during that time, was one of the three co-founders of the Chicago Architectural Assistance Center, a community design group. Following his graduate studies, Frank served as in-house legal counsel in the management of a West Coast A/E firm. For over a decade Frank held staff positions in the national professional organizations for architects and engineers. At the AIA, ASCE and NSPE, he managed programs in government relations, federal and state regulations and legislation on procurement, practice management and professional liability issues. In 1991, Frank joined the staff of Victor Insurance Managers LLC as a risk management attorney. In his position, Frank produces risk management publications and website information for the Victor design professionals insurance programs with CNA. He also provides webinars and seminars for insured firms and for the professional societies and trade associations in the design and construction industry including seventy-four presentations at national AIA conferences.
AIA New York; Victor insurance Managers LLC
