- Whether the dollars spent in defense of the case by the insurance provider affect the amount of your liability coverage in the event of a verdict.Insurance companies frequently offer policies that either decrease or do not erode the amount of coverage. Keep in mind that litigation can be costly, with defense costs exceeding $100,000 in some cases.Nothing is worse than having your entire coverage undermined by defense fees.
- How much your insurance coverage will pay for a defense in a grievance action. A grievance action’s defense might also be costly.You do not want to be forced to accept a suggested disciplinary stipulation from the licensing agency just because you cannot afford to defend yourself in action.
Although many of these measures are common sense, circumstances can and do exist that encourage design professionals to disregard prudence in pursuing an intriguing or lucrative project or simply for personal pride.
When approaching any client or matter, remember to keep cool and consider the big picture, including your other projects and professional reputation.
Adhering to these rules, such as communicating properly, documenting your activities, and safeguarding yourself and your reputation, can pay off enormously by preventing a lawsuit or grievance or drastically improving your defense.
