Insurance &
Risk Management

Specialized Insurance for
Design Professionals

Insurance and Risk Management Specialized Insurance for Design Professionals

The Risk Specialty Group | 888-421-RISK (7475) | info@riskspecialtygroup.com

Should I sign a Letter of Reliance?

Q: My client mentioned that their lender will request to have a separate agreement signed, in addition to my professional services contract.  Is this typical, or does this signal additional risk? A:  Your client’s lender is not generally the intended recipient of your...

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Should I waive the consequential damages provision?

Q: Why should I ask my client to waive consequential damages, as suggested in some of the standard industry documents?  A:  Deleting a provision that waives consequential or special damages increases your risk, perhaps substantially.  The mutual waiver A201-1997...

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How should I resolve a dispute?

Q: Is litigation, arbitration, or mediation a more favored method of resolving a dispute?  A:  There are many variables to consider when determining which resolution method is best for your firm, and even for a particular project.  Find a knowledgeable attorney to...

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Should I name third-party beneficiaries?

Q: Does my risk increase if I name third-party beneficiaries in my contract? A: Naming third-parties as beneficiaries in your contract may allow those parties the right to bring claims directly against you.  Since those parties might not otherwise have that right, by...

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Who owns my project documents?

Q: Does my client own my project documents? A: It depends on your contract language. A license to use your documents is often intended only when you’ve been paid in full for your services.  Also, some clients don’t understand that documents are project-specific and...

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Does indemnification leave me exposed?

Q: The indemnification section of my contract places the majority of responsibility on me.  How can I manage this exposure?   A: Be wary of references to damages or obligations beyond those that are proximately caused by the negligent rendering of your professional...

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Should I be concerned about a Set-off Provision?

Q:  My new client has proposed a set-off provision for our contract.  Is this an issue I should be concerned about? A:  A set-off provision typically allows your client to offset their own (real or potential) monetary claim against you by reducing their next payment...

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