[Inspired]

I'm thinking about what insurance I might need as a designer and why. The guy that sold me my general liability policy isn't real experienced with insurance for designers. He's got the contractor end down very well, but I got the blank look when I asked about insurance for a designer. I've heard people mention Errors and Omissions and I can imagine what it's for, but do you really need it for ALL of the residential work most of us do? I can understand the larger more complicated jobs, but a lot of what I do is pretty simple to install really.

I'm thinking a little tweaking on my design only contract might be a good idea, as well. Any pre-emptive "errors and omissions" ideas for a design contract?

Anyone have some suggestions on either?

[agla]

You have to weigh risk vs. consequenses.

E&O insurance is not cheap and is based in part on your your credentials and track record. The track record in not just whether or not you have had claims against you, but how much you documented to have been in the position to have had that kind of responsibility. That is a hard record to document unless you have worked for a major design firm. The result is that you won't get the benefit of the doubt, so your rates will start high.

I was quoted $5,000+ for very minimal coverage for a part time business not doing contract administration. I have worked in professional design offices (landscape architects, civil engineers, and surveyors for 8 years as a licensed landscape architect) with no claims or negative issues of any kind. Since I only do about $10k a year in design work in my part time office and only do "schematic" landscape designs rather than full construction documents, I make sure I do not take on any high risk work. I also try to cover as much as possible with disclaimers on plans and a very thorough description of responsibilities of the client and contractor in the design contract.

Always have a note about underground utilities, a note stating that it is the property owners responsibility to see that it complies with any regulatory authorities or HOAs, a note stating that the property ines are estimated and that locations of things are from tape measures and not by instrument, and that the purpose of the plan is solely for the purpose of a landscape plan. If there is any room left, you can actually draw a plan, too.