A Lapse in Judgment—and Insurance

A contractor subcontracted the design of a ventilation system to a mechanical engineer. The engineer miscalculated the cooling needs of the building and specified an inadequate ventilation system. Because of the system’s poor performance, the building owner demanded $180,000 to replace it. At the time of the claim, the mechanical engineer had let his Errors and Omissions policy lapse. Therefore, the contractor was held liable for replacing the system.

This is a claim scenario developed from a single claim or several claims and has been developed for illustrative purposes only.

Leave a Reply

Your email address will not be published. Required fields are marked *