What is covered by a CGL policy? - ✔✔Losses caused by construction methods resulting in BI
or PD from an accident, including ordinary construction methods.
What is not covered by a CGL policy? - ✔✔Negligence or errors and omissions in a design
professionals provision of professional services.
What is Design Malpractice? - ✔✔The failure to meet the standard of care and a client
sustains damages as a result. * Financial/economic losses, bodily injury, property damage *
Usually involves E&O in a structures design
What does a Joint Venture assume? - ✔✔Joint and Several Liability. Both assume
responsibility for construction defects, subcontractor financial risks, and job site safety issues.
What are some specific responsibilities of design firms during construction observation? -
✔✔* Interpreting plans/specifications * Keeping records * Reviewing/certifying payments *
Determining the date of substantial completion
What legal elements must exist for a design malpractice claim to be valid? - ✔✔1) A duty is
owed by a design professional 2) A breach of that duty has occurred 3) Injury/damage to a
client or 3rd party or that 3rd parties property has occurred 4) A casual connection between the
breach of duty and damage exists
Where are industry standards most commonly found? - ✔✔* Building codes * License laws *
Zoning regulations
What happens if "Joint/Severability" is replaced with "Proportional Liability"? - ✔✔The
liability of the total loss would be decreased. * Proportional liability only holds defendants
, responsible for their part of the total damages attributable to their negligence rather than
having full liability and the right to seek reimbursement
What is an exception to the Economic Loss Doctrine? - ✔✔Excludes purely economic damage
claims and claims if no contractual relationship exists
What do the Statutes of Repose do? - ✔✔Set fixed limits on the period of time within which
certain parties may be held liable for defects in products they design, build, or manufacture
What is the difference between Statutes of Repose and Statutes of Limitations? -
✔✔Statutes of limitations specify the amount of time a plaintiff is permitted to pursue legal
remedies rather than file a claim. * Clock may start at the time of injury or at the time the injury
could have been recognized rather than at project completion
What does an Indemnity Agreement do? - ✔✔One party (indemnitor) assumes liability of
another (indemnitee) by contract. * AKA: Hold Harmless Agreement
To what extent do states regulate design professionals? - ✔✔* Regulate & license design
professionals within their borders * Building codes are regulated locally (sometimes by
adopting the IBC) * Design professionals are found negligent if not following set guidelines
What is a defense against allowing frivolous claims? - ✔✔The Certificate of Merit Statute *
Requires claimants to seek a certification from an expert to prove validity of the claim
What are the three main parties of the construction process? - ✔✔* Project Owner *
Designer (Architect or Engineer) * Builder (Contractor)
Faulty Workmanship excludes what claims? - ✔✔Claims arising out of faulty workmanship in
any construction the insured performs
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