Cost of E & O insurance

[James A]

On multi- family, where the probable lawsuit will come from a homeowners assoc. complaining about hairline stucco cracks etc, a developer I know does the following:
Architect and developer both form LLCs under their corporations and conduct all work through these LLCs and dissolve them at completion of each multifamily project.
All engineering consutants have contracts with developers LLC and not with architect. Most lawsuits are aimed at the structural engineer.
I have not done this but I reviewed it with several attorneys and they all said it is the best protection possible.