Architects and the public expect that there be sufficient funds available to pay for errors and omissions of the profession.

Pro-Demnity operates much like a mutual insurer, putting the protection and interests of its
policyholders – architectural practices – first.

To support the profession as it grows, it is important that we maintain the financial strength necessary to ensure we are always there to protect and defend Ontario architects. Our capital is the key measure of that strength: not only must we comply with insurance regulations of the Financial Services Regulatory Authority (FSRA) of Ontario, but we must also plan for economic and other trends that affect the company, both now and in the future.

In 2023, Pro-Demnity’s financial performance was stronger than in previous years, safeguarding our
sustainable insurance operating model and furthering our efforts to protect and defend architects.

See below for highlights of our Reliably Protective financial performance in 2023:

Read the 2024 Annual Update:

February 3, 1957 – February 29, 2024

The Pro-Demnity family is heartbroken at losing our dear friend and valued colleague, Margarette Chan. 

Margarette was the heart of our organization, ensuring that everything ran smoothly and that everyone was taken care of. She was the first to acknowledge and celebrate special occasions and important milestones such as birthdays, anniversaries, and company achievements. Her generous spirit, warmth, and kindness were just a few of her many qualities that distinguished her as the one we all gravitated to during celebrations as well as challenging moments. She was gracious, dignified, and the wind beneath our wings.

Never seeking out recognition for herself or her many valuable contributions, Margarette praised and raised those around her. She had an unparalleled work ethic, was unfailingly professional, and committed to both her work and team, supporting us at every turn. 

Margarette joined the OAA in April 1988 as Secretary, about one month after arriving in Canada from Hong Kong. Six months later, she started as Assistant to the General Manager of the OAAs Indemnity Plan playing a key role in our company’s growth, development, and transformation into a full-fledged insurance company. She was a Chartered Insurance Professional (CIP) who served Certificate of Practice holders in the early days and was instrumental in establishing enduring relationships with Lloyd’s. As Corporate Secretary for over 35 years, she was our knowledge keeper, organizer, and trusted confidante – a best friend at work for many. In her professional role, she excelled in providing management support to the Board of Directors alongside our first President and CEO, Byron Treves, and more recently, Bruce Palmer. With a keen eye for detail, and ability to deliver with speed and accuracy, Margarette always ensured that we had the latest information at our fingertips.

Her joyous, sparkling eyes also held wonderment for the beauty of our world. No one loved the magic of Disney more than Margarette! Prized Mickey Mouse memorabilia and merchandise could always be found at her desk, and her sense of play and fun made the most mundane days, brighter. We will miss her dearly.

Our deepest condolences and love to her daughters Marsha and Meghan, her mother, sister, brother and her extended family. 

Margarette Lilia Chan, CIP | Catholic Cemeteries & Funeral Services – Archdiocese of Toronto – TORONTO ON (catholic-cemeteries.ca)

Clear, modernized professional liability policy wordings.
Same robust coverage for architectural firms.

Innovation and continuous improvement to our services and products are fundamental to Pro-Demnity’s strategic plans over the next three to five years. We’re building on our promise to provide an alliance for protection to Ontario’s architectural firms, actively considering and responding to client as well as employee feedback. To this end, we’ve initiated a four-phase underwriting project that aims to address policy wordings (phase 1), the current pricing model (phase 2), introduce more efficient processes (phase 3) and enhance technology (phase 4) to improve the new application and renewal experiences for all Certificate of Practice holders.

Today, we’re pleased to announce the upcoming modernization of the professional liability insurance policy wordings.

Updated policy wordings

Improved clarity and harmonization are the key drivers in modernizing Pro-Demnity’s professional liability insurance policy wordings. Your policy wordings are a detailed explanation of your coverage. They describe what is covered under your policy and any endorsements, exclusions, conditions, or limitations that apply. Starting April 1, 2024, upon renewal, we’ll be introducing a refreshed policy that features clearer wordings, terms, and definitions.

Professional liability insurance coverage from Pro-Demnity, which is already robust and effective in protecting and defending architects remains fulsome and we continue to insure Ontario Architects for allegations of error, omission, or negligence in the usual and customary practice of the profession of architecture.

After a detailed review of our core product, we’ve clarified coverages and harmonized language to make it easier for clients to understand their coverage, resulting in one seamless professional liability insurance policy for all architectural practices.

• One policy only.  Whether you are purchasing mandatory or increased limits, you will receive the same Professional Liability Insurance policy. The wordings of Policy 1 (mandatory limits) and of Policy 4 (increased limits) have been harmonized, with coverage clarified, eliminating the need for two separate types of policies. This one policy will be known simply as the Professional Liability Insurance policy.
• Standard endorsements and extensions are included within one Professional Liability Insurance policy. Every existing Standard Endorsement and Extension are now integrated into the policy for ease of reference.
• A new Technical Requirements Schedule is part of the Policy. Technical requirements previously refenced in Endorsements and Extensions, have now been consolidated in a Technical Requirements Schedule for easier and quicker reference. The Technical Requirements Schedule may be updated from time to time as technical requirements change, without us needing to re-write our endorsements or policy wordings. Any updates to the Technical Requirements Schedule will always be communicated to you prior to coming in force.

  Please note that a new standard endorsement specific to Precast Concrete Panels/Cladding is being added, further to a successfully completed pilot with a handful of architectural practices.

• Easier to read. The readability of the policy is improved with a friendlier overall tone to aid in understanding of insurance coverage.
• April 1, 2024. Refreshed policy will be introduced for renewals beginning April 1, 2024. This date is historically aligned with the start of the next policy year (Year 38).
• Other products/policies are not impacted. Retirement from Practice (currently known as Policy 2) and Spike up on Annual Practice Limits remain unchanged.

Coverages and limitations made more explicit

Coverage language is generally more overt in the refreshed policy wordings. Being explicit ensures that the interpretation of coverages or limitations is clear and accurately reflects our existing best practices. In making the protections easier for principals / architects to read and understand, we also endeavour to illuminate potential risk areas for architectural firms, which are exposures that Pro-Demnity seeks to reign in with respect to the broader risk of claims that may negatively impact our program of insurance for all Ontario firms.

We draw your attention to the following instances where coverage language is more explicit in the refreshed policy:

1. Addition of a new sub-limit in cases where Mandatory arbitration is required in a contract:  “If You have agreed, in a contract for professional services, to a mandatory arbitration or other type of dispute resolution clause that removes or restricts Our ability to defend You, and there is a Claim made that relates to such contract, the maximum amount of all Damages and Claims Expenses that we will pay on Your behalf or reimburse to You shall not exceed $50,000 for one Claim and $100,000 for all Claim(s) reported during the Period Of Insurance”.  

   This sub-limit will take effect for contracts signed on or after July 1, 2024. It is intended to encourage Certificate of Practice policyholders to pay particular attention to Dispute Resolution clauses in contracts which erode protections from Pro-Demnity that would otherwise be yours. [How much We will pay: Our limit(s) of Liability and Your Deductible. Important Sub-Limits and Reductions to Limits of Liability. Item 6]

2. Standardization of the Claims Expense limit when there is excess insurance with another insurer: The Claims Expense limit is capped at $300K when a policyholder, “specifically arranged professional liability insurance that applies as excess to the insurance provided by…[Pro-Demnity].”  The Claims Expense limit is now the same for policyholders of either mandatory limits or increased limits.  [How much We will pay: Our limit(s) of Liability and Your Deductible. Section C. Item 2.] 
3. Clarification of “jurisdiction”: we make it clear that where a project is located outside of Canada, Pro-Demnity only covers claims brought forward in Ontario unless we have explicitly agreed to cover them elsewhere, based on the information you provide in your application for professional liability insurance. This is consistent with our current practice and provides greater clarity than our current wording. [What is Covered? Items 3. 4. 5.]
4. Clarification of coverage related to Fee Disputes: claims arising out of a fee dispute are not covered. This reinforces our current practice and policy wording. [Exclusions: What is Not Covered. Item 3]
5. Clarification of coverage related to Geotechnical engineering and Surveying Services. The performance or engagement of geotechnical engineering services or services that constitute the practice of cadastral and professional surveying under the Surveyors Act, are not covered. This reinforces our current practice and policy wording [Exclusions: What is Not Covered. Item 17]. Further, the performance or engagement of professional services related to “pollution” are also excluded. [Exclusions: What is Not Covered. Item 18]
6. Clarification of Liability of Others Assumed Under Contract. Any liability of others You have assumed under contract or other agreement (whether written or oral), except that We will cover You for Your liability for Insureds, provided that Your liability would have already existed at law in the absence thereof. [Exclusions: What is Not Covered. Item 6]
7. Clarification of Liability to Others Assumed Under Contract. Any liability to others You have assumed under contract or other agreement (whether written or oral), except that We will cover You for Your liability for Insureds, provided that Your liability would have already existed at law in the absence thereof. [Exclusions: What is Not Covered. Item 7]
8. Clarification of coverage related to Communicable Disease Outbreak. Claims related to public health emergencies are not covered or government regulation related to same is not covered. [Exclusions: What is Not Covered. Item 19]
9. Clarification of coverage related to Strikes. Claims related to labour strikes are not covered. [Exclusions: What is Not Covered. Item 20b.]

Further updates to the refreshed policy

You will note that reference to a Plan Credit is no longer part of the refreshed policy. Pro-Demnity is obligated to ensure the financial stability of the overall program of insurance for architectural practices in Ontario, secured through annual rate changes and appropriately calibrated pricing based on actual claims experience.

The refreshed policy wordings also contain some new sections to help aid in understanding as well as to align with current practices in the insurance sector:

• Key sections added at the start of the Professional Liability Insurance Policy: an Introduction, Our Obligations, Your Obligations, and Information You have given Us. Although our overall goal is to have an approachable tone, we have toughened our wording about both misrepresentation and non-payment.
• The addition of an explicit “Sanctions” clause, based on the wording in our reinsurance policy. This clause requires us to follow the sanctions rules of Canada, the USA, the EU, and the UK. [Exclusions: What is Not Covered. Item 28]
• An expanded and updated “Definitions” section.

Resources available to you

You are encouraged to read the:

• refreshed Professional Liability Insurance policy when you receive it at your next renewal (on or after April 1, 2024).
• Technical Requirements Schedule which forms part of your policy. Do share it with your team: architects, project leaders, interns and others in your firm, who can help you manage risk during the design phases of projects. Refer to the Technical Requirement Schedule frequently to ensure your designs comply with and qualify for ingress of precipitation coverage.
• Frequently Asked Questions.

Your refreshed policy will come in force upon your next renewal on or after April 1, 2024.

For policy-related questions, the Underwriting team may be reached at 416-386-1770 x.3 or mail@prodemnity.com.

For guidance on specific risk situations that you may be facing, please contact our Risk Services team and book a meeting to Speak with an Expert.

For general information visit www.prodemnity.com.

Next steps

You will hear from our Underwriting team as you typically do 60 days prior to renewal.  Please review your renewal documentation and respond as soon as possible, and at least 30 days prior to your renewal date to ensure no interruption to your coverage.

Best-in-class coverage

Professional liability insurance is a valuable, integral component of your architectural firm’s professional services, and we’re pleased to provide you with best-in-class coverage featuring contemporary, clear wordings.

Your Pro-Demnity policy offers peace of mind, reliable protections, and coverages unique to the practice of architecture in Ontario. As your allies, we strive to provide you with professional service, innovative products and exceptional claims-handling while championing your wise, effective, and efficient management of risk.

We look forward to serving you soon and supporting your architectural practice in the months ahead and years to come.

Your professional liability insurance premium is primarily affected by two main figures: (1) the architectural fees reported to Pro-Demnity, and (2) the rate we apply to those fees. Your premium is, at its most simple, the average of the fees you have reported to us over the past three years multiplied by our rate. The same base rate is applied to all practices and policyholders. This base premium is then adjusted to reflect the mix of work you have reported to us, the “per claim” limit you are purchasing, your deductible, jurisdictions outside of Canada, etc. to get your final premium payable.

Annually, the base rate is re-calibrated. Working with our finance and actuarial teams as well as our reinsurers, we work to keep our increases predictable and as affordable as possible. Although these rate changes will not affect you until your next policy renewal, we endeavour to communicate rate increases as early as possible to enable you to better anticipate the impact to your business and adjust accordingly.

RATE INCREASE IS 3% in 2024-2025

For renewals on or after April 1, 2024 through to March 31, 2025, the base rate increase will be 3%. This rate increase is lower than in recent years and reflects the positive impacts of applying stringent cost and expense controls to the business as well as prudently and deliberately building up a stronger capital base year over year to protect against future claims occurrences (expected and unanticipated).

RATE AND PREMIUM TOGETHER

Remember your premium is calculated by multiplying the three-year average of the fees you have reported by our rate … meaning that if your three-year average fees have increased, your premium will go up by more than 3%.

In calculating your total premium, we calculate premium in bands: the premium for the bottom layer of coverage is calculated using our base rates, the next layer pays a percentage of the base rate, the next layer a smaller percentage of the base rate, and so on. This reflects the ongoing reality that most claims still settle within lower limits of insurance, which allows us to reduce the cost of the higher bands of coverage. Among the consequences of this approach is the outcome that purchasing a $5 million limit is not five times the price of a $1 million limit, and $1 million is not four times the premium of a $250,000 limit.

This “banded” approach to premium calculation also allows us to adjust how our rate applies across various limits. Since our rate increase mostly reflects the growth in claims costs, and since those costs remain concentrated in lower claims limits, we do not plan to apply our 3% rate increase to higher coverage limits. This means that those practices that purchase higher limits will see a rate increase less than 3% on their overall premium. 

PLANNING FOR THE FUTURE

In alignment with our commitment to supporting your business success, we continue to strongly encourage policyholders – as a general business practice – to budget and plan for at least a 5% rate increase every year. We have been working diligently to ensure stable, steady rates for architectural practices so that unexpected annual fluctuations are minimized. In our 2023 Rate Communication to you – worth repeating this year – Pro-Demnity has consistently shared that the costs it faces continue to climb. Several trends over the last 10-12 years have increased architects’ exposure over longer periods of time, and we anticipate these trends to persist, and we foresee the ongoing need for rate increases in the future.

We hope that clearly communicating our expectations for the future will enable you to budget, plan and forecast with greater confidence and reliability, minimal surprises, and provides you with a cushion when a lower rate increase is applied, as is the case this year. We are committed to controlling all the costs we can, but we do not want to mislead you about our future expectations.

NO INFLATION ADJUSTMENT

In the 2023-2024 rating period, we introduced a 4% inflation adjustment to deal with the impact of unusually high inflation. This inflation adjustment provided some benefit and relief to the overall program of insurance which had been under some pressure in the 2021-2022 period. Although we continue to monitor the impact of inflation closely as it affects our costs and claims, inflation is built into our planning and budgeting process.

For 2024, there is no inflation adjustment being applied in addition to the rate increase this year.

WHY PROFESSIONAL LIABILITY INSURANCE MATTERS

As a reminder, your professional liability program serves two purposes:

• To protect you, our policyholder. As the architects’ professional, trusted ally, Pro-Demnity guarantees that we will protect and defend architects in accordance with their respective insurance policies. To do so, we need to ensure we maintain the fiscal strength and capacity to meet these requirements.
• As a wholly owned subsidiary of the OAA, we serve to re-assure the public that architectural firms have the financial resources, through their insurance policy, to fulfill their duty of care to clients and society when there are allegations of error, omission, or negligence.

By being fiscally responsible, diligent in our governance and helpful in our service to you, Pro-Demnity is upholding our promise to provide architectural practices with an alliance for protection.

RISK EDUCATION RESOURCES

Speaking of protection, we offer extensive risk management resources to all architectural practices and their staff. Knowledge of the risks associated with practice and how to mitigate, manage, transfer, avoid or accept those risks, will heighten your business acumen. We actively share our knowledge and expertise with you and encourage you to prioritize your ongoing education of these risks. Even if your firm has never had a claim to date, our experience suggests that no firm – no matter their size, location, length of time in business, reputation, or expertise – is immune from being named in a claim.

The risks you face in your architectural practice may translate into actual claims. Before they do, avail yourself of the risk articles, bulletins and thought leadership news items on our website at any time.

In the next few weeks, you will also have the ability to “check your ARMr”.  ARMr is the Architectural Risk Management Assessment Report which will help you to zero-in on identifying potential risks, and to strengthen your overall risk management. The report provides guidance on how to close risk gaps.

Finally, should you need to reach out to any one of our architectural risk experts to discuss a difficult or challenging situation regarding contracts, clients, constructors etc., book a meeting to Speak with an Expert.

BEING YOUR ALLY

We take being your professional, trusted ally very seriously. No one understands the risks that architects face better than Pro-Demnity.

Pro-Demnity operates on behalf of architects, and only architects. Our unwavering commitment to Ontario’s 1,580+ architectural practices is to ensure that they, and your firm, will always be protected and defended in the event of allegations of error, omission, or negligence.

Should you have any questions about insurance rates or premiums, please contact our Underwriting team.

Understanding how your professional liability insurance premium is calculated can help you to manage your business and plan or forecast with greater confidence.

The formula is very simple and is applied equitably across all architectural practices.

As an illustration only, imagine an architectural practice had annual reported fees of $200,000, and purchased the minimum mandatory coverage of $250,000. Assume that there have been the same fees earned each of the past four years.

Fees reported for 2020 renewal:  $200,000
Fees reported for 2021 renewal:                                  $200,000
Fees reported for 2022 renewal:                                  $200,000
Fees reported for 2023 renewal:                                                               $200,000

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3-year average revenue (2020 – 2022): $200,000
3-year average revenue (2021 – 2023):                       $200,000

In 2022:

Premium = rate x 3-year revenue (i.e., Gross Fees) average.

For simplicity, assume that the rate charged for this practice in 2022 was exactly 4.0%.  This means they would have paid [(3-year average fees) x (rate)] = $200,000 x 4% = $8,000.00 as a premium in 2022.

For example, if 3-year average revenue increases by 5% and the rate increases by 5%, the premium increase will be 10.25%, all else being equal.

In 2023 with inflation adjustment:

Premium = rate x inflation adjustment x 3-year revenue (i.e., Gross Fees) average.

In 2023, the rate increase was 5%, so it is now (4.0 x 1.05) = 4.2%. The three-year average fees will have a 4% inflationary factor applied, so the three-year average will be ($200,000 x 1.04) = $208,000. This means they will have paid [(3-year average fees) x (rate)] = $208,000 x 4.2% = $8,736.00 as a premium in 2023. This new premium reflects the rate increase of 5% and the impact of the inflation adjustment of 4%.

The difference in premium between 2022 and 2023 is an increase of $736.

As your architectural practice grows, so too will your mandatory limits of liability, and consequently, your premium.

For example, when reported fees are over $500 K or above $1 M, the mandatory Claim, Project and Aggregate Limits increase, commensurate with your firm’s growth (see the chart below). The jump to the next tier up, also triggers an increase in premium.

Should you require a more detailed explanation specific to your firm, please don’t hesitate to reach out to our Underwriting team after you’ve received your renewal package.

Book your next meeting with an architect online!

Pro-Demnity has enhanced one-on-one, customized support to clients with an automated booking system that improves client access to our in-house architectural experts in our Risk Services department.

Architectural clients may now book an appointment to speak with an expert at a time convenient to them. Booking a meeting is easy – through Calendly via our website – and the meetings take place over MS Teams. Clients have access to experts who are also architects, understand professional liability, understand practice risk, and who can provide sound guidance. Members of the Risk Services team may also be contacted during business hours via email: riskmanagement@prodemnity.com or by phone: 416-386-1770 ext. 2.

One of the benefits of the online booking system is that clients may pre-select from a broad range of topics / issues that they would like to discuss with an expert. Typical topics include Contracts, Agreement and RFPs, Situations and Disputes Arising on Projects; General Coverage Questions; Specific Coverage Exclusions; Determining if a Claim Exists; Requested Undertakings/Guarantees from Municipalities, Lenders or other Third Parties; and unusual requests.

Here are just a few reasons why you might want to Speak with an Expert:

• Complimentary: Included with your professional liability insurance policy.
• Confidential: Discretion is maintained. Only the Risk Services team of Pro-Demnity is aware of your issue.
• Claims Triage: Assists you in understanding when you have a claim and help start the claims process.
• Connective: Refers architects to the Underwriting team, or Claims, or recommends other sources for further information or guidance
• Conversation: To obtain pre-emptive, remediation-driven guidance, sharing knowledge and experience, with non-binding recommendations.
• Collaboration: You need a sounding board – someone who will listen and understand the situation you are dealing with.
• Clarification: Take advantage of the opportunity to learn more about professional liability from Pro-Demnity
• Comfort: Architects are provided with actionable guidance.
• Confidence: The Risk Services team members work closely with colleagues and the community to ensure their knowledge is current.
• Competence: The Risk Services team are fellow architects with over 50 years combined experience assisting other architects.

Thirty-minute appointments are available Tuesdays, Wednesdays and Thursdays, and can be booked at: Speak with an Expert.

On November 7, 2023, Pro-Demnity’s Legal and Claims team organized a Legal Panel Conference event to bring together external legal counsel firms with our in-house litigators. The event was organized by Rosemarie Hurst, SVP of Claims and Legal, and was the first of its kind. The purpose of the event was to share information on the common goal of defending architects in litigated claims alleging errors, omissions, or negligence.

The conference was attended by several external legal counsel firms, who were invited to share their expertise and insights on a variety of topics. The event was structured around a series of presentations and panel discussions, with ample time for networking and informal discussions.

The conference began with a welcome from Bruce Palmer, President and CEO, and an opening address by Rosemarie Hurst, who welcomed the attendees and provided an overview of the objectives of the event. This was followed by a series of presentations by members of Pro-Demnity’s Legal and Claims team, who provided an overview of the company’s approach to defending architects in litigated claims.

The presentations were followed by a series of panel discussions, which provided an opportunity for attendees to ask questions and share their own experiences and insights. The discussions covered a wide range of topics, including best practices for defending architects in litigated claims, emerging trends in the field, and strategies for managing risk.

One external participant commented that “the discussions were stimulating and thought provoking.  We learned a lot from our fellow panel members. And I think it is fair to say we learned even more from the Pro-Demnity team presenters. You gave us a great look behind the curtain of the business. It gave all of us a deeper understanding of the context in which we provide services. We also appreciated the lessons in timely communication. These were good reminders and were presented in a positive and encouraging way.”

Rosemarie Hurst, SVP Claims and Legal stated that the conference was the first of its kind for Pro-Demnity and will become an annual event. “It was the perfect blend to have all the great legal, insurance, and architectural minds in one room. The camaraderie amongst the team was certainly displayed throughout the day and while it was a lot of work, everyone had a great time and learned so much.”

Overall, the Legal Panel Conference event was a resounding success. Attendees praised the event for its collegial and professional atmosphere, as well as the quality of the presentations and panel discussions. One attendee referred to the event as “wonderful” and went on to share their congratulations to the team on the “thoughtful organization and the splendid execution of the conference.”

The event provided a valuable opportunity for Pro-Demnity’s Claims and Legal team to share information and insights with external legal counsel firms, and to strengthen and build relationships that will be beneficial in supporting architects in the future.

Once more, we’re sharing the year’s most-read risk education articles and news items.* This is our fourth annual list providing a round-up of what architects found interesting to read in 2023 from their professional liability insurer.

Topping this year’s list is Season one of Architects’ Claims Stories podcast. The inaugural season features four 30-minute episodes, recounting the circumstances of a real claim, inspired by the 6,000+ that
Pro-Demnity has defended over the years.

Landing in second place is Why Architects should use OAA Contracts, written by in-house Managing Counsel, Philip Ghosh, who highlights the benefits of leveraging OAA 600 or OAA 800 as the standardized contract of choice for Certificate of Practice holders.

Capturing the third spot and appearing on the Top Ten list for the third consecutive year, is the well-received List of Lawyers, which refers architects to Pro-Demnity’s “go-to” lawyers for all things related to protecting a practice’s business interests.

New on the list this year, are articles written by Leslie Parker and Salvador Knafo of our Risk Alliance team, sharing their expertise and insights on ways to improve your risk management practices from the client engagement and design stage straight through to Site Review.

1. Season one of Architects’ Claims Stories podcast.
2. Why architects should use OAA Contracts.
3. Lawyers available to assist architects.
4. A claim in four Figures.
5. Is your Site Review as good as you think?
6. Will your architectural documents help (or hinder) your defense?
7. Limitation Periods: is an architect ever safe from litigation?
8. Lender’s undertakings (aka “bank” or “funding” letters)
9. 25 things within an architect’s control.
10. For whom the litigation tolls: what architects need to know about tolling agreements.

Most of the reads take less than 3 minutes, delivering valuable insights to support architects in their professional roles, while providing relevant and useful solutions that help architects to manage, mitigate, avoid, transfer, or assume risk with eyes wide open.

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*The rankings were driven by stakeholders including (but not limited to) architects, architectural technologists, architectural practice leaders, partners and principals, risk leaders, insurance decision-makers, policyholders and ancillary professionals (i.e., lawyers, engineers), as derived from website visits and page views from January 1, 2023, to December 1, 2023.

As this year’s COP 28 summit begins, Pro-Demnity, the leading provider of professional liability insurance for architects in Ontario, announces that it has fully divested from fossil fuel investments as of July 2023. This milestone marks the completion of a process that began in September 2018, when Pro-Demnity’s Board of Directors made the decision to stop investing or reinvesting in fossil fuels and pipelines.

Pro-Demnity’s investment philosophy is guided by environmental, social and governance (ESG) factors, which are integrated into our portfolio construction and selection of investment managers. Our investment manager is a signatory to the United Nations Principles for Responsible Investment (RI), which promote the incorporation of ESG issues into investment analysis, decision-making, ownership, disclosure, and reporting.

As a key ally of the architecture community, Pro-Demnity is committed to operating and investing in a responsible, sustainable manner. We believe that this approach not only aligns with our corporate, fiscal and social values, but also enhances our long-term performance and risk management. We are excited to share this achievement with our community of practice, clients and the broader public, and we look forward to continuing our efforts to contribute to a more sustainable future.

Read our 2021 Announcement.

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NOTE: Our active investment strategy in this portfolio was to hold assets to maturity. There was only one investment in pipelines in this portfolio, a bond which expired in July 2023. It was decided to let this bond mature in 2023 and not reinvest in it.

As an architect, you know that your work involves complex design decisions, technical challenges, and contractual obligations. You also know that sometimes, things don’t go as planned and you may face a claim or a potential claim from a client, contractor, or third party.

But do you know what to do when that happens? Do you know how to report a professional liability claim to your insurer and what benefits you can get from doing so?

At Pro-Demnity, we understand that reporting a claim can be stressful and intimidating. You may worry about the impact on your reputation, your relationship with your client, and your insurance premium. You may also think that you can handle the situation on your own, without involving your insurer.

However, reporting a claim to us is not only a contractual obligation under your policy, but also a smart move that can save you time, money, and hassle. Here are five reasons why you should report a claim to us as soon as possible:

1. You can get access to our Claims team, who can provide you with expert advice, guidance, and support throughout the claim process. They can help you assess the situation, communicate with the parties involved, and resolve the issue in a timely and professional manner.
2. You can avoid breaching your policy conditions, which may result in a denial of coverage or a reduction of your policy limits. If you fail to report a claim, or if you admit liability, make a payment, or enter into a settlement without our knowledge or consent, you may jeopardize your coverage and expose yourself to further risk.
3. You can prevent the claim from escalating or becoming more complicated. By reporting a claim early, you can prevent the other party from taking legal action, filing a complaint, or making further unreasonable demands. You can also avoid missing any deadlines, losing any evidence, or worsening any damages.
4. You won’t be judged by us. We know architects generally strive for excellence, endeavour to meet client needs and take care to avoid errors or omissions in designs and in the performance of architectural services. Our job is to support and guide you to the successful closure of the claim. You always have ready access to resources (our experts as well as our risk education articles, and podcast) to improve your risk management systems, as warranted.
5. You can benefit from our experience and expertise in handling claims. We have a dedicated team of claims professionals and lawyers who have extensive knowledge and understanding of the architectural profession and the insurance industry. They can negotiate with the other party, defend your interests, and protect your reputation.

Reporting a claim to us is easy and convenient.  You may call us at 416-386-1770 or email us at claims@prodemnity.com. We will respond to you promptly and assign a Claims Specialist to assist you.

Remember, reporting a claim to us is an obligation under your professional liability insurance policy, but it’s not an admission of fault or a sign of weakness. It is a responsible and proactive step that can help you manage your risk and protect your practice.

Don’t hesitate to contact us if you have any questions or concerns about reporting a claim. As your ally, we are here to help you.