What does it mean when I retire?

You may be entering retirement, but your projects keep working. Because the liability for any completed project remains, despite closing your practice, retiring from practice or switching to another firm,
Pro-Demnity may provide continuing coverage, through Retirement from Practice insurance so that you don’t find yourself or your family at risk, which the last thing you want to worry about at this stage.

This solution is unique to Pro-Demnity and protects architects in three specific situations:

  1. For a retiring architect, this allows you to effectively manage financial risk in your estate planning knowing that potential claims associated with the work you did when still practicing are covered. Should you pass away, it will also protect your estate from claims for up to six years after your death.
  2. If you decide to close or merge your practice but continue to work as an employee at another firm, it protects you from potential claims associated with the work you did when you owned your own practice.
  3. If you decide to close a practice and work in an unrelated field – you would be covered for previous work as a Holder of a Certificate of Practice.

This coverage is applicable to all current and former OAA members.

The only requirements are that:
a) you participated in the Indemnity Plan or have had Professional Liability Insurance with Pro-Demnity for a minimum of two years;
b) paid all the premiums, levies, deductibles and taxes during that time.

For those current or former OAA members who retired prior to January 1, 2003, the Pro-Demnity Retirement from Practice Program replaces similar coverage previously offered through the OAA Indemnity plan.

When does it apply?

This coverage starts once you have surrendered your certificate of practice. At that point, Pro-Demnity will automatically provide continued professional liability coverage at no cost to you except for payment of the deductibles should a claim arise.

What does it cover?

This insurance covers potential claims associated with the work you did when still practicing. It will also protect your estate for up to six years from claims should you pass away.  The coverage limits are as follows:

Claim Limit (total value of any one claim):       $250,000

Aggregate Limit (total value of all claims):       $500,000

Deductible:        $1,000 (each and every claim)

Premium:           $nil

Keep in mind that defence costs are in addition to the above limits for damages.

How does it work?

Depending on your circumstances, this coverage comes into effect automatically from the moment you surrender your Certificate of Practice and your Professional Liability Insurance expires (this insurance cannot be cancelled mid-term). There is no premium, and the only cost obligation is to pay the deducible should a claim arise.

Recommended Reads:

Policy Wordings, Technical Requirements Schedule, Endorsements and Extensions