Questions and Answers Arising from the AIBC Special Meeting

Updated February 16, 2009

Section F: Mandatory Insurance

F1. Q: I am in favor of mandatory insurance. In the past, however, insurance companies have pulled insurance, leaving some firms and new graduates uncovered. What guarantee is there that this will not happen again if there is a mandatory insurance requirement?

F2. Q: If the scope of practice for registered architects will not change, will the removal of the Certificate of Practice system, replacing it with a “licensing system”, result in restrictions to the type of work available to an architect by excluding or limiting the availability of “mandatory insurance”?

F3. Q: Will associate members (i.e. builders, interior designers, architectural technologists) carry equivalent liability insurance? Will they be liable for the same length of time?

F4. Q: In what ways does the requirement for mandatory liability insurance support the establishment of new practices by young architects?

F5. Q: Will requirements for mandatory professional liability insurance coverage be the same for all disciplines under the AIBC umbrella organization?

F1. Q: I am in favor of mandatory insurance. In the past, however, insurance companies have pulled insurance, leaving some firms and new graduates uncovered. What guarantee is there that this will not happen again if there is a mandatory insurance requirement?

A: The proposed new legislation anticipates this possibility. If insurance in not reasonably available to a practitioner, council has the power to exempt that practitioner from coverage. The AIBC cannot “guarantee” the actions of the commercial insurers

F2 Q: If the scope of practice for registered architects will not change, will the removal of the Certificate of Practice system, replacing it with a “licensing system”, result in restrictions to the type of work available to an architect by excluding or limiting the availability of “mandatory insurance”?

A: There is no intention of replacing the requirement for a Certificate of Practice. Also, the system would not exclude or limit the availability of insurance. As explained above, if insurance is not reasonably available, the AIBC has the power to exempt practitioners from the requirement. Insurance providers will not be able to dictate practice. AIBC Council intends to continue a “Certificate of Practice” type of system without any insurance-related bias.

F3 Q: Will associate members (i.e. builders, interior designers, architectural technologists) carry equivalent liability insurance? Will they be liable for the same length of time?

A: Insurance premiums are specific to the type of practice and the risks specific to that practice. Accordingly, it is expected that mandatory insurance coverage for associate registrants will not be equivalent to insurance coverage carried by architects. In addition, different architectural practices will carry different insurance coverage with different exclusions, risks and premiums. As for the duration of liability, the Limitation Act governs the length of time that professional liability endures.

Note: Registered Interior Designers already have a requirement for mandatory professional liability insurance.

F4. Q: In what ways does the requirement for mandatory liability insurance support the establishment of new practices by young architects?

A: While the requirement for mandatory liability insurance is intended primarily to protect the public interest, it has the ancillary advantage of protecting architects who would otherwise be self-insured (that is, liable personally for damages) for any errors and omissions in their practice. Currently, lawyers and doctors have mandatory professional liability insurance - it is considered a cost of doing business and is ultimately paid for by clients through fees. Such a standard for the architectural professions can be regarded as a prudent “due diligence” measure for any new practitioner who undertakes to provide professional architecture design services. The provision for mandatory professional liability insurance is not intended to either inhibit or support young architects to establish a practice. However, it will provide clients with the comfort of knowing that even the smallest firm is covered. Mandatory insurance provisions, which reflect today’s public policy demands, are meant to protect the public interest in the competence and accountability of the profession.

F5 Q: Will requirements for mandatory professional liability insurance coverage be the same for all disciplines under the AIBC umbrella organization?

A: Yes. Under the proposed new act, all Certificate of Practice holders will be required to carry liability insurance. The coverage, deductions, premiums and exclusions will be specific to the practice, claim history and general insurance market. The proposed legislation includes exemption provisions for special circumstances or if reasonable insurance coverage becomes unavailable.

Should you have any further questions regarding the proposed legislation, please submit them using the Feedback resource on the New Legislation web page.

The complete Q&A is also available in PDF format. Please click here to download.