The annual comprehensive report profiling a collection of case studies on professional liability claims against consulting engineers in South Africa has recently been released.
The collection of case studies, which is a joint collaboration by Aon South Africa Professional Risks Division and Consulting Engineers South Africa (CESA), provides invaluable insights into the scope, severity and magnitude of risks faced by consulting engineers in a practical and easily understood format.
This is according to Malcolm Padayachee, Manager of Professional Risks at Aon South Africa, a leading risk consultancy and insurance brokerage.
“The risks that engineering professionals are exposed to are complex, and in many instances understanding and getting a handle on these risks is massively challenging, as they often arise out of complex interdependencies which may not be immediately visible,” explains Padayachee.
“These case studies provide an invaluable tool to study and further explore the potential risks faced by professional companies in this sector with real-life accounts and scenarios providing lessons to be learned,” he continues.
Threats provide opportunities for growth
The case study collection covers various claims and actual case studies from CESA members covering cancellation of contracts, faulty design, the value of limitation on liability clauses and negative payment certificates among others.
Another crucial topic for professionals is that of legal risk management, ensuring that professional services organisations and individuals fully understand their potential exposure to legal liability.
“Threats provide opportunities for growth in that the best-prepared companies will be the ones that better manage their vulnerabilities and thus can withstand a greater range of threats; that can recover more quickly and can return to commercial activities sooner than their competitors.
This case study book provides practical insights that allow for proper planning and pre-empting of the range of threats faced by engineers that could lead to a PI claim,” concludes Malcolm.