Joint Venture – Contract Tip of the Week

Q: We’re joint venturing with another firm who wants to be covered under our professional liability insurance policy. Can we add them?

A: The RLI professional liability insurance policy provides coverage for your participation in a joint venture, but only for your liability arising out of your firm’s professional services under the joint venture. Since all participants in a joint venture typically have joint and several liability, we recommend that you confirm that your joint venture partners maintain coverage at least as broad as the coverage that you’ve secured.

The Risk Specialty Group and RLI Design Professionals are pleased to feature our Contract Tip of the Week series. Each week, we’ll review a question submitted by a design firm relating to the subject of contracts. Keep in mind, though, that these discussions are general in nature and in making specific business decisions, it’s important to review your options with a knowledgeable attorney.