Pro-Demnity is updating its premium calculation model so that it reflects an architectural practice’s claims experience.

This is a notable and significant response to the majority of architectural firms who have called for premiums to be priced in accordance with their unique claims experience, as evidenced and expressed through loss ratios. Pro-Demnity has heard these concerns and intends to uphold fairness and integrity in our pricing, and to reward positive risk-awareness habits within the architectural community through applicable discounts.

The change is part of our planned Underwriting Project, a four-phased initiative that began in 2023 with the update to our Policy Wordings in Phase 1 (2024). Phase 2, which began earlier this year and will continue into 2025, focuses on re-evaluating the premium calculation model (or the pricing model). Phase 3 (2025) will concentrate on Underwriting processes, workflows and service standards, and Phase 4 (2026) will implement technology and digital solutions to make it easier for policyholders to renew annually.

More details about the premium calculation model will be included with the annual renewal packages, effective April 1, 2025.

As we approach the holiday season, Pro-Demnity is excited to announce our sponsorship of two inspiring and festive events hosted by the Toronto Society of Architects (TSA): TSA Gingerbread City 2024 and the TSA Gingerbread City: Kids’ Main Street Workshops 2024. These events celebrate creativity, innovation and collaboration – attributes that align with Pro-Demnity’s commitment to support the architectural community to take the risks necessary to build a better (gingerbread!) world, by championing their efficient, effective management of risk. In fact, TSA Gingerbread City is the only design activity where Pro-Demnity happily challenge architects to take all the uninsured risks that they would like that fall outside of their usual and customary professional services! 

TSA Gingerbread City 2024: Celebrating Architecture and Design Through Gingerbread 

This December, TSA Gingerbread City 2024 promises to be a delightful fusion of architecture and holiday spirit. The event invites architects, designers, and artists to build gingerbread structures that represent the urban landscapes and iconic architecture of Toronto. It’s a fun and festive way to showcase the creativity and craftsmanship that define the architectural community. 
Pro-Demnity is proud to sponsor this unique event, where art meets architecture in the form of edible masterpieces. Whether you’re an architect looking to showcase your work in a new and sweet way, or a community member wanting to admire the creative genius of local architects, TSA Gingerbread City 2024 is not to be missed. 

Event Details: 

• Event Dates: Dec. 12 – Jan. 10 (In-Person Display Up) 

• Registration Date: Dec. 2 (Registration Deadline for In-Person Display); Dec. 11 (Deadline for all Submissions) 

• Registration Form: In-Person Display Registration form 

• Submissions Form:  Online Submissions Form 

For more details, including how to submit your gingerbread creation, please visit TSA Gingerbead City 2024. 

TSA Gingerbread City: Kids’ Main Street Workshop – Inspiring the Next Generation of Architects 

We’re also proud to sponsor the TSA Gingerbread City: Kids’ Main Street Workshop, an event that encourages young minds to explore the world of architecture. Through hands-on activities, children will learn about city design, architectural principles, and the art of building with creativity and fun. This event is all about fostering curiosity and giving kids a glimpse into the world of architecture in a way that’s engaging and educational. 

By supporting the TSA Gingerbread City: Kids’ Main Street Workshop, Pro-Demnity is helping to inspire the next generation of architects, designers, and thinkers. It’s a wonderful opportunity to nurture their creativity and empower them to think about how they can contribute to the built environment of tomorrow. 

For more information and to register your child for this hands-on workshop, visit TSA Gingerbread City: Kids’ Main Street Workshops 2024 

A Shared Commitment to Community and Creativity 

At Pro-Demnity, we understand the value of fostering creativity in architecture and beyond. As a trusted ally to architects in Ontario, we are committed to supporting events that help build stronger, more vibrant communities. Both Gingerbread City 2024 and the TSA Gingerbread City: Kids’ Main Street Workshop are excellent examples of how creativity, design, and collaboration can come together to make a lasting impact on our community. 
 
We look forward to celebrating the holiday season with the TSA and all those involved in these remarkable events. If you’re an architect or designer, we encourage you to get involved and contribute your skills to TSA Gingerbread City 2024. And for families with young aspiring architects, the TSA Gingerbread City: Kids’ Main Street Workshop is a fantastic way to spark their interest in the built world. 

Dear Policyholders,

Due to the Canada Post strike, we want to ensure that you are aware of the necessary steps to continue managing your professional liability insurance policy payments and documentation without interruption. 

Payments:

• Electronic Payments: We strongly encourage you to make your payments electronically using the Pre-Authorized Debit (PAD) form. This method is secure, efficient, and unaffected by postal delays. For the duration of the postal strike, we can also provide you with instructions for making one lump sum payments directly from your bank account using online banking:  EFT transfer, Bill Payment or Wire Transfer. Electronic payments are crucial during this time to ensure your payments are received and processed without delay.

• Cheques in the Mail: If you have already mailed a premium payment or deductible payment cheque to our lockbox, please contact our Finance Department immediately at finance@prodemnity.com or 
  416-386-1770 X4 to discuss alternative arrangements for your upcoming payment, if necessary.  
• Processing time: Our team is working actively to support impacted clients. Please be aware that due to the strike, you may experience longer than expected wait times for this service, and that we will process requests in priority sequence.
• Maintaining your professional liability at all times: Certificate of practice holders are required to maintain professional liability insurance coverage at all times as per the Architects Act. This means prioritizing premium payments to ensure continuous coverage.  

Renewal, Spike-up or Increased Limits Applications:

• Continue to submit applications for renewal, spike-ups or increased limits electronically to mail@prodemenity.com.
• For underwriting documents such as applications for renewal, spike-up, or increased limits, please be assured that there are no impacts to processing times. Our team is fully equipped to handle these documents promptly and efficiently.

Reporting a Claim and Claims Processing:

• Submitting Claims: Please continue to report any claims via e-mail at Claims@prodemnity.com or call 416-386-1770 X1 to ensure timely processing.
• Claims Documentation: If you have sent any claims or litigation documentation via mail, please contact our Claims Department or your Claims Specialist to confirm receipt and discuss any necessary next steps.

We appreciate your understanding and cooperation during this time. Should you have any questions or require further assistance, please do not hesitate to contact us.

Thank you for your continued trust and support.

Season 3 of the podcast has a new name and is brimming with fresh episodes, situations and risk advice.

The Claims-Free Architect podcast takes a deep-dive into situations faced by licensed architects and architectural practice owners, that lead to claims against them.
 
The episodes look at predicaments and projects that vary in size and complexity, from small home renovations to large commercial complexes. When a project goes sideways, the consequences can include every kind of loss—financial, reputational, physical and personal.

The Claims-Free Architect (formerly Architects’ Claims Stories) presents the timeless stories originally penned by former VP, Claims, David Croft. Now updated, revised and brought to life in an audio format, making them accessible and invaluable to today’s professionals. This podcast will enable you to gain wisdom from the missteps of others. You’ll gain the insights needed to identify potential risks, and learn how to manage, minimize, mitigate, transfer, avoid or even accept risks, and ultimately, protect your practice from claims.

The re-brand to “The Claims-Free Architect” better captures the aspirations of licensed architects, practice owners and interns, to be better-informed about the risks associated with architectural practice. The relatable situations, pulled from Pro-Demnity’s case files, deliver valuable lessons and risk advice that any architect can apply in their practice immediately.

Subscribe to The Claims-Free Architect from your favourite podcast provider. Rein in risk while unleashing your creativity.

Listen on Apple Podcasts

Listen on Spotify

Listen on Amazon Music

Captions available on podcast platforms.

*Actual participants and some circumstances have been fictionalized, to protect the identity of the parties involved.

Did you listen to the podcast? Share your feedback.

The final report of the inquiry into the Grenfell Tower fire, released on September 4, 2024, revealed a series of systemic failures which resulted in tragic fatalities. While the cladding was identified as the principal reason for the rapid spread of the fire, the report highlighted dishonest practices by companies involved in the building’s refurbishment, who manipulated safety tests and misled the market. It cited ethical, professional and cultural failures within government, private sector and the construction industry in the UK.

The architect’s role could not be overlooked. The report also highlighted their “failure to act in accordance with the standard of a reasonably competent architect,” particularly in the selection and approval of building materials. The Judge emphasized, “Architects must pay close attention to the inquiry’s findings and recommendations,” underscoring the critical role of architectural diligence.

Pro-Demnity is in the midst of this very exercise. We are currently reviewing the report with the intention of offering comprehensive, useful and relevant insights for Ontario architects in the near future.

Our goal is to ensure that your architectural firm enjoys continuous professional liability insurance coverage and peace of mind.

Here are four things you can do – and the timeline to do them in – to ensure that your renewal is completed well before the policy expiry date:

• Start Early. Your firm will receive e-mail notification that it’s time to renew at least 60 days prior to your expiry date. Start gathering key information required in the Renewal Application within 5 days of receiving your Renewal E-mail.
• Review your Coverage Needs. Between 10 to 15 days of receiving your renewal e-mail, consider your firm’s growth over the previous year, as well as any upcoming projects or business development plans. This is the time to consider increasing your limits or your deductible. Contact the underwriting team for a quote. Alternatively, if you’re planning to wind down your practice, do so before your renewal. Contact the OAA to surrender your Certificate of Practice and Contact Pro-Demnity to let us know. If eligible, you will be transitioned to the Retirement from Practice Program.
• Complete the Application. Within 15 to 20 days of receiving your Renewal E-mail, fill out the Renewal Application and complete all sections in full. Call the Underwriting team to answer any outstanding questions you might have, before sending in your documentation.
• Submit the Application. Ensure all sections of the application are completed and that all your supporting documentation is in hand. E-mail your Renewal Application and supporting documents to mail@prodemnity.com a minimum of 30 days before your policy expiry date. Please allow 15-20 business days for the renewal to be processed.

Architects and Pro-Demnity set legal precedent                  

Of the cases that Pro-Demnity has taken to trial, which are few, we are proud to say that we have won in every instance, including at the Appellate level. This good news story concerns a recently closed case where Pro-Demnity defended the architect all the way to the Ontario Superior Court and won.

The Decision to go to Court

The decision to take a matter all the way to the end of trial is not made lightly and, in fact, is not the norm for most insurance companies. Most cases of allegations of error, omission or negligence acts will settle long before trial, either at mediation or at other opportunities during the lengthy litigation process.  This matter happened to take seven years to make it to trial. There were several attempts by us to settle earlier in the process, but settlement was thwarted at every turn. In our view, it was due to the intransigence of our opponent, a condo developer who was confident it was in the right. However, it eventually was proven wrong. Working in concert with the architectural practice, we reviewed the situation in great detail, conducted a thorough investigation, assigned and retained Shibley Righton (a top construction law firm), tapping into the extensive legal expertise of Charles Simco, senior partner and head of the Construction Law Group, alongside Megan Marrie, Partner. Further, we identified key experts, and carefully established the foundation for a strong, solid case.

The Project

The Project was a 17-storey condominium with four levels of underground parking completed in 2015 located in Toronto.  The developer engaged the architect and all consultants independently.  This arrangement was a key factor at trial.

Fee Claim and Counterclaim

The matter started out as a fee dispute. The architect commenced a lien action for non-payment of fees in the order of $156,000 against its developer client. It was at this point that the Architect notified Pro-Demnity.

As is often the case, a counterclaim ensued from the developer for multiples of the unpaid fee claimed, intended to quash the architect’s claim; the counterclaim was for $1.2 million. 

The developer alleged negligence, breach of contract for design deficiencies, inadequate site review, delay and failure to coordinate.  Failure to coordinate became the prime allegation and focus of the lawsuit.

The Architect’s Agreement

The architect used a standard OAA Document 600 with supplementary conditions. The developer engaged all the engineering consultants separately. As the engineering project consultants had not been engaged by the architect, the agreement was amended to reflect that and was expressly limited to coordination with the developer’s consultants.

This became germane to our understanding of the case and in the Judge’s reasons when Judgement was finally rendered. Many of the arguments were predicated on the consultant relationships and the duty to coordinate as defined in the agreement.

(Lack of) Coordination

There were many instances showing a lack of coordination between the engineering designs, that is, as between the mechanical and structural drawings. There were very few involving architectural aspects of the project. The conflicts in the design drawings were discovered and resolved during construction but not without the creation of extensive delays. In effect, certain aspects of the project were being designed, and conflicts worked out, as construction proceeded. The developer blamed the architect for the lack of coordination of the various disciplines. It viewed the architect as having an overarching coordination role akin to a prime consultant.

Pro-Demnity rejected this position based on the specific wording of the agreement and felt that the developer was the author of its own misfortune having taken on the primary role of coordination by virtue of the wording of the agreement and having hired the engineering consultants directly.

To back up its position, the developer engaged an expert who produced a report that opined that the architect was responsible for coordination of all consultants, even though the language in the architect’s agreement suggested otherwise.  Our view was that the architect was not acting as prime consultant and each consultant had an equal duty of coordination with each other.

Ultimately, this case came down to two simple words “coordination with” as opposed to “coordination of” other consultants.

In the end, the Judge ruled in Pro-Demnity and the architect’s favour and found that the architect’s duty of coordination was with that of other consultants. Moreover, the Judge found that the architect professionally discharged its duties and met the standard of care expected. His reasons were contained in a 34-page long document issued several months after the end of trial.

Summary:

The case came down to a simple preposition in the contract, “of” or “with”.   The developer argued that the architect was responsible for the coordination of the consultants; we argued it was coordination with the consultants.  Our position prevailed and the developer’s counterclaim was dismissed.

The architect received a good portion of its unpaid fees owing and substantial legal costs were awarded to Pro-Demnity, offsetting the hefty litigation costs.

With respect to the Profession, this case set a legal precedent regarding an architect’s duty to coordinate, enshrining into law a more nuanced definition of coordination on projects where architects do not engage the engineering consultants directly and have an agreement that accurately reflects that.

Pro-Demnity followed through with its conviction that its position was the correct one — and thankfully succeeded at trial.

This case was presented under the title “A House of Cards: Risks in Residential Design” at the 2024 OAA Conference, with the Architect’s endorsement to socialize this issue more broadly: “Anything to improve the awareness level of the membership has my support.”

Here are five Lessons Learned that you can apply in your practice today:

• Use the most current OAA documents as a form of contract.

• Ensure that any changes are reviewed by a lawyer and the document is signed before proceeding with the work.

• Be explicit about what you will or will not do in the Supplementary Conditions to your agreement with respect to duties that vary from the standard.

• Stick to your scope of work and consistently follow through on your duty of care.

• Use best practices for record keeping and archive your documents. Any verbal conversations must be recorded in case of future reliance. Treat each document as a potential court exhibit. Good record keeping can make or break a case. It helped win in this litigation.

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Our Contributor

Pro-Demnity is proud to support the architectural profession in its pursuit of Housing: Pushing the Envelope at the 2024 OAA Conference in Niagara Falls, Ontario. We are pleased to be a lead sponsor again this year.

The conference resources below provide you with the latest tools and knowledge to help you and your firm navigate risk in a wise, efficient and effective manner.

Join us at the Pro-Demnity booth for a fun try at building your own House of Cards and a chance to win a customized Risk Education presentation from Pro-Demnity for your firm (valued at $1250.00 CDN). See instructions and contest rules below.

Resources/Presentations

Risks of Expedited Housing Design and Construction. Leslie Parker, Senior Architect and Iliana Arapis, VP Client Experience.

LL1: Professional Liability Insurance for Architects
Presented by: Andrea Lalonde, VP, Underwriting
Qualifies for 1 Structured CE credit.
Wednesday, May 22 12:30 pm to 1:30 p.m.

CE32: A House of Cards: Risks in Residential Design
Moderated by: John Hackett, VP Practice Risk Management
Presenters: Phil Ghosh, Managing Counsel; Leslie Parker, Senior Architect; Salvador Knafo, Lead Architect.
Qualifies for 1.5 Structured CE credit.
Thursday, May 23 10:30 am – 12 noon

Best-in-class Professional Liability Insurance: Learn more about the refreshed Professional Liability Insurance Policy and supporting FAQs.

NEW: Take the Architectural Risk Management Assessment Review (ARM/r) for a quick way to potentially identify gaps in your risk management systems. Check your ARM/r now!

To download any of the following resources, click on the ellipses embedded with the resource shown and select “Download PDF File”.

Join us at the Pro-Demnity booth for a fun try at building your own House of Cards and a chance to win a customized Risk Education presentation from Pro-Demnity for your firm (valued at $1250.00 CDN).

Simply:

1. Build your House of Cards to a minimum of three levels.
2. Take a picture of it.
3. Upload the photo to your professional (or your firm’s) LinkedIn profile and promote it!
4. Be sure to Follow Us on LinkedIn.
5. Tag Pro-Demnity.

HOUSE OF CARDS CONTEST RULES: House of Cards designs which reach or exceed three levels AND garner a minimum of 5 “Likes” on LinkedIn qualify to be entered in a random draw for a chance to win a customized 2-hour Risk Education presentation from Pro-Demnity to an OAA Certificate of Practice in good standing that is also a Pro-Demnity policyholder in good standing at the time of the draw. Prize valued at $1250.00 CDN. Your House of Cards must be built at our OAA Conference booth between May 22 to May 24, 2024, and you must be an attendee of the OAA Conference, an OAA or an architectural intern in Ontario to enter. Group entries are accepted as long as the group is employed by the same firm. Prize draw will be made on Monday, May 27th. Winner will be contacted directly and announced in the June edition of the Straight Line Newsletter. Prize to be delivered in Ontario at a mutually agreed upon time and place prior to June 30th, 2025. Odds of winning depend on the number of qualified entries received. This Pro-Demnity contest is run separately and independently from the OAAs daily prize contest during the 2024 OAA Conference.

2023 was an important year for Pro-Demnity and by extension, for architects in Ontario.

For Pro-Demnity, opportunities to demonstrate innovation and forward-thinking set the tone for the year. We began the process of updating our policies and underwriting procedures and implementing some critical new systems to better-serve architectural practices. Solidifying the strength and resilience of the organization, also served to heighten our focus on people: you, our valued policyholders, and our steadfast employees. In brief, we have endeavoured to be ever more reliably protective.

Here’s why we believe these four areas are important to us and to you:

Our insurance policies and underwriting process are where we make and fulfill our promise to protect and defend you. Updating our policy to ensure it is best-in-class, and to better reflect current and contemporary practices in insurance and architecture is a cornerstone initiative. With this work well underway in 2023, it will continue throughout 2024 and 2025 to include improvements to the processes and technologies by which your annual policy is issued, along with spike-up endorsements and other coverage-related enhancements.

New technologies such as the Claims Management System, launched in March, and the Legal Management System, launched in October, improve our ability to manage claims and legal processes, more closely monitor expenses, and enhance the flow of information between key service areas. As a bonus, there is improved access to the data behind claims against architects, which should give us better insights to share with you over time.

Our strength and resilience were certainly put to the test since March 2020. Here again, 2023 was an important year with respect to our financial condition, with the company increasing its capital strength and moving towards its desired longer-term financial situation. This matters to you because it is our financial strength and capital that assures you of our ability to pay claims. The outcome of every claim is always uncertain, but you never want any uncertainty about our ability to pay. Our financial strength is what provides that certainty to you.

A focus on people and our values of Trust, Accountability, Collaboration, and Innovation has taken on even greater importance. We continue to work in a hybrid model, ensuring that your needs are dealt with in a timely fashion regardless of whether our staff are in the office or working from home. Geographically, our team is spread across Ontario, from Waterloo to Ottawa, from the Great Lakes to Lake Simcoe (and beyond, when we include our Board of Directors). Further, we continue to act on issues of diversity, equity, inclusiveness, and belonging. Employee engagement surveys, conducted twice per year, help us understand just how engaged our team is … and engaged people serve you better.

Client Experience, your experience, is a particularly important aspect of our attentiveness to people, and we leverage your feedback through client surveys, meetings with practice leaders, presentations, and social media to stay abreast of industry trends, and listen to concerns. We continue to innovate and evolve new tools to help you access the information or services you need, whether by booking an appointment online to speak with one of our Risk Services experts or by interacting with you in person, or virtually, at industry events and meetings.

Your architectural work is vital to society, as you design and shape the extraordinary spaces where we live and interact. Our work is to ensure you can fulfill that mission without having to worry about financial ruin – or even just painful annoyance – brought about by a claim or other allegation of error, omission, or negligence. That’s why we strive to be reliably protective.

In an uncertain world, we bring you the certainty of an ally, to help protect and defend you.

Debra Krakow, Chair, Board of Directors

Bruce H. Palmer, President and CEO

WE’VE GOT YOUR BACK.

Ontario’s architectural practices count on us to protect them when there are allegations of error, omission, or negligence, and rely on our team to provide support before, during and after a claim.

Throughout 2023 Pro-Demnity leaned into being Reliably Protective for every architectural practice – an intention we are carrying into 2024.

This annual update highlights the ways in which we earn our client’s trust and our enduring support of architectural practices to design a better world through their wise, effective and efficient management of risk.