Drafting business insurance and liability ?

[perryh]

I don't believe there's the big conspiracy theory Perry describes

What you don't know will hurt you.

Also the Insurance Company's will sometimes change your policy details, after you file a claim, to benefit them, I have seen it many times on larger money cases. Especially if its a tort action. You will not even notice it. They will hire you an inexperienced attorney to lose the case, on purpose. Then, they don't have to pay anything because, it was willful mis-conduct and they don't ever pay for those actions.

[sutcac]

I know many old school who said/did this, but nobody current. The climate has changed. We've gotten more litigious. Nobody asks if you have insurance. If something goes horribly wrong, they do "mud against the wall" and sue everybody.

This has been my experience too. I have really only run into two actual engineers (both old school, had been around here a long time) who said this when I was asked to hire them by a client. In each case I could not since I was insured and they weren't. They both claimed the "it just makes you a target" defense but digging a little deeper, both did some rubber-stamping of others plans for a nominal fees and got burned on it, then couldn't get insured because their rates went up too much. I think they have both pretty much retired now.

The others I heard about were all second hand hearsay.

[barkeatr]

its hard to insure illegal activity, check your state laws....here in NY its clear what you propose is illegal. "...you cannot perform or offer to perform any or all phases of architectural design..."

Although I will say here in upstate NY its not well enforced and illegal practice has gone viral.

barkeater

[WendyWelton]

Barkeater,

Laws are state by state, and NY is one of the most restrictive. In most states, I believe including Missouri, a non-registrant is permitted to do residential design.

[barkeatr]

btw - the attorney they put on my case with Jack - $350 an hour. And I like him enough that I then paid him separately to re-review the contracts Jack had done for me, and he caught several significant problems.

..good read on this... thanks Wendy...I was thinking of going bandit ( sans insurance) in the boot up phase of my small firm but not now.

Tim McCarthy

[chd624]

Well, if you are talking about Lincoln University Missouri, and your engineer is just reviewing and stamping your drawings, he is likely in violation of that state's Code of Professional Conduct. To quote two sections-

(7) Licensees shall not assist non-licensees in the unlawful practice of architecture, professional engineering, land surveying or landscape architecture.

and-

(1) An architectural, engineering or landscape architectural entity shall incorporate a title block on all drawings and other documents required to be signed and sealed by Chapter 327, RSMo and these regulations.
(2) The title block must, at a minimum, contain the following information:
(A) The name of the licensee either as a sole proprietor, partnership, corporation, limited liability company or other appropriate entity;
(B) The licensee’s address and phone number;
(C) Name or identification of project;
(D) Address/location of project (city/county and state);
(E) Date prepared;
(F) Space for the licensee’s signature, date and seal;
(G) The printed name, discipline and license number of the person sealing the document; and
(H) The printed name, discipline and certificate of authority number of the corporation as defined in section 327.011, RSMo.

State of Missouri Code Professional Conduct

That is exactly what the client that tried to make a claim against me did, the city threatened that engineer with a complaint against his license, and why he had to call me to clean up his mess. He still went on to try and blame me for it later. I should have known better and won't make that mistake again.

Nope........Lincoln University, Pa.

[perryh]

..good read on this... thanks Wendy...I was thinking of going bandit ( sans insurance) in the boot up phase of my small firm but not now.

Tim McCarthy

BTW-- 350 hr. is cheap around here.

[barkeatr]

YOU must be joking...350 per hour!

[frans]

There is also a difference between designing and drafting. Supposedly, if you are drafting, you follow instructions from the designer, which can be an architect, homeowner, inventor, etc. It may help limit your liability by naming the designer of record on the plans as well as the drafter's name.