Professional liability insurance for damages caused by the activities of certified architects

BASIC professional liability insurance

Insurance Policy
Effective October 1, 2015, insurance policy no. 8059840216 was agreed between the CCA and ČSOB pojišťovna, a.s. to provide professional liability insurance covering an architect's activities under the certification granted to the policyholder pursuant to Act No. 360/1992 Coll., on the Professional Practice of Certified Architects and on the Professional Practice of Certified Engineers and Technicians Active in Construction, as amended and supplemented.
The policy is annually automatically extended to the next insurance year, always on the 1st of October.

Who is insured?
All members of the CCA are insured automatically, including resident persons, except for certified persons who have explicitly and demonstrably refused the insurance negotiated through this policy and who accept the risk of loss of the insurance as originally agreed, to which they will have been alerted by the broker in writing. The premium is CZK 1,140 or CZK 2,800 per year (depending on the limit selected).

Unsubscribing and insurance rollback
It is possible to unsubscribe from the basic insurance, but this can have negative consequences for individual certified persons with regard to the principle of "claims made" (which means that certified persons must be continuously insured at the time the damage occurs, encompassing the time of its occurrence, the filing of a claim for damages and the notification of the damages to the insurance company).

Certified persons who have unsubscribed may re-apply for basic insurance through insurance “rollback.” The insurance is effective from the date of notifying the insurance company and on the basis of payment of insurance premiums and a one-off rollback fee.

• For interruptions of up to 1 year (inclusive) ....CZK 300
• For interruptions of up to 2 years (inclusive) .......CZK 550
• For interruptions over 2 years ..............CZK 1000

Insurance limit and deductible
The insurance limit is set at CZK 200,000 or CZK 1,000,000 for any and all insured events arising during the insured period, with a deductible of CZK 5,000 for each insured event. The insurance limit is available twice per insurance period. If the limit is exhausted, it is possible to purchase more insurance up to the existing limit.

Scope of coverage
The insurance is negotiated for cases in which the insured's liability for damages caused to the other party is legally stipulated, i.e.:

  • damage to health, loss of life,
  • damage, destruction or loss, and/or
  • net financial damage, and in connection with the professional activities of the insured as:
  1. a certified architect under Act no. 360/1992 Coll., on the Professional Practice of Certified Architects and on the Professional Practice of Certified Engineers and Technicians Active in Construction;
  2. an authorised inspector in accordance with Act No. 183/2006 Coll., the Building Act;
  3. a workplace health and safety coordinator, in accordance with Act 309/2006 Coll., stipulating further requirements for health and safety at work;
  4. an energy auditor in accordance with Act No. 406/2000 Coll., on energy management,
  5. engaged in the performance of supervision in accordance with Section 17 of Act no. 360/Coll 1992,
  6. engaged in the drawing up of energy performance certificates of the building,
  7. an organiser, juror and/or auditor of competitions.

In accordance with the New Civil Code, from October 1, 2013 the insurance also covers non-material damage, up to a sub-limit of CZK 100,000.

The territorial scope is worldwide, excluding the USA/CAN.

The insurance also covers the insured's liability for damages caused during the operation of their office, i.e. activities related to the professional activity of the insured (general liability).

The insurance also covers persons who have worked for the insured in the form of subcontracted work or in an employment relationship in connection with the insured’s above-mentioned professional activity. Furthermore, the insurance also covers liability for claims for damages filed by health insurance companies in the event of damage to the health or life of a person other than an employee of the insured. In such cases, this concerns medical expenses paid by the health insurance company in connection with damage to health caused by an error in the project (i.e., regressive health insurance).

The total insured amount also covers legal costs and legal defence fees incurred in the event of a court hearing for damages.

Retroactive coverage
The insurance contract provides retroactive coverage (effective for breach of obligations) from 30. September 1997, i.e., it continuously follows on from the original insurance.

The full wording of the insurance policy and conditions of coverage are available on the website www.cka.cz

The insurance is arranged and administered from Prague; regional branches send all contacts to Prague.

In the event of any questions, please contact us at our Prague address.

Contact
Helena Durchánková
tel: + 420 221 418 149
tel: +420 770 120 690
email:

MARSH s.r.o.
Atrium Flora, entrance B
Vinohradská 2828/151
130 00 Prague 3

The information contained in this publication provides only a general overview of the topic. It is not intended as advice on any individual situation and should not be construed as such. Contact your insurance or legal adviser for specific issues concerning insurance coverage.

Neither this document nor any part of it may be copied or reproduced in any form without the written consent of Marsh, with the exception of Marsh clients, who do not need to obtain this consent if they use this document for their internal needs.

MARSH, s.r.o.
Registered office: Vinohradská 2828/151, 130 00 Prague 3
IČ (Company Registration Number): 45306541
Entered into the Commercial Register held by the Municipal Court in Prague, Section C, Insert 7847, on March 12, 1992.
© Copyright 2012 MARSH, s.r.o. All rights reserved.