The importance of quality professional liability insurance: Meet the skeleton designer who was negligent and will pay compensation totaling approximately 3 million shekels
Sep 14, 2020
בית המשפט המחוזי בחיפה קיבל לאחרונה (יוני 2020) פסק דין המהווה תמרור אזהרה בוהק לגבי החשיבות שמקופלת בטיבו של ביטוח אחריות מקצועית למהנדסים, הנדסאים ואדריכלים (ת"א 3071-07-16). נסקור בקצרה את סיפור המקרה, ונגזור מתוכו השלכות רלבנטיות לענייננו, לגבי המשמעות הדרמטית שעשויה להיות לביטוח אחריות מקצועית לעוסקים בתכנון.
פסק הדין מתחיל עם בני זוג שרכשו מגרש ביישוב קהילתי והתקשרו עם אנשי מקצוע שונים לפרויקט "בנה ביתך". כאשר התגלו במבנה ליקויי בנייה חמורים, הדבר הוביל להגשת תביעה נזיקית כנגד חברת ההנדסה שעסקה בתכנון הקונסטרוקציה, ומתכנן השלד מטעמה (שהוא נושא משרה בכיר בה).
הנתבעים ניסו להעלות טענות מן הגורן ומן היקב להעדר רשלנות. בנוסף הם ביקשו "לגלגל" מעליהם את האחריות על ידי שליחת הודעות צד ג' כנגד שורה של גורמים. החל ממפקח הבנייה והאדריכלית, דרך החשמלאי שביצע חציבות בנכס, וכלה אפילו בני הזוג עצמם (מכיוון שהם "מבצעי הבנייה" בהעדר קבלן מפתח).
בית המשפט דחה (כמעט) את כל טענותיהם של חברת הקונסטרוקציה ומתכנן השלד, ומצא כי הם חייבים בפיצויים משמעותיים לבני הזוג. פיצויים בסך כ-2.7 מיליון שקלים שמגלמים את עלויות הריסת המבנה הקיים ובניית בית חדש במקומו, כמו גם ראשי נזק נוספים שכללו פיצוי בגין דיור חלופי, אחסון הרהיטים בזמן הבנייה, אגרות, היטלים, עוגמת נפש ושכר טרחתם של המומחים שמסרו חוות דעתם להליך).
The Haifa District Court recently (June 2020) received a ruling that constitutes a glaring warning sign regarding the importance inherent in the nature of professional liability insurance for engineers, civil engineers, and architects (Ta 3071-07-16). We will briefly review the case story, and draw from it implications relevant to our case, regarding the dramatic significance that professional liability insurance may have for those involved in planning.
The ruling begins with a couple who purchased a plot of land in a community settlement and contracted with various professionals for a "Build Your Home" project. When serious construction defects were discovered in the structure, this led to a lawsuit being filed against the engineering company that was involved in the construction design, and the structural designer on its behalf (who is a senior executive in the company).
The defendants attempted to raise claims from the threshing floor and the winery that there was no negligence. They also sought to "shift" responsibility away from themselves by sending third-party notices against a number of parties. Starting with the building inspector and architect, through the electrician who performed the excavations on the property, and even the couple themselves (since they are the "construction operators" in the absence of a key contractor).
The court rejected (almost) all of the claims of the construction company and the skeleton designer, and found that they owed the couple significant compensation. Compensation totaling approximately 2.7 million shekels, which covers the costs of demolishing the existing structure and building a new house in its place, as well as additional heads of damage that included compensation for alternative housing, storage of furniture during construction, fees, levies, emotional distress, and the fees of the experts who provided their opinions for the proceedings.
How did the court reach its conclusion?
The court reached its conclusion based on the opinion of an expert appointed on its behalf, as well as on the evidence presented, the cross-examinations, and the complex legal process that took place before it for approximately 4 years (since July 2016).
Without going into the intricacies of engineering negligence, we will explain that the skeleton designer's negligence was on several levels and mainly stemmed from:
Failure to conduct a soil test.
Designing piles that are shorter than necessary.
Lack of iron on the living room floor.
Poor design of the roof support beams.
The damage was so great that it was decided that the compensation due to the couple would not only be useful in "repair", but that there was no escape from demolishing the structure and rebuilding it.
From the specific to the general – the importance of quality professional liability insurance
The ruling teaches us several things about the great importance of having professional liability insurance that is purchased wisely, prudently, and with quality coverage.
From the perspective of the defendants – the skeleton designer and the construction company, who are in fact one entity – there is no doubt that the amount of compensation awarded against them is high and significant. This is in addition to the legal expenses they were required to bear in order to conduct a complex and extensive legal process for over four years (which was conducted in two instances – first in the Magistrates' Court, and then, in light of the growth in the amount of compensation, in the District Court).
Neither is this true, there is no involvement of an insurance company in the verdict. From this, it can be assumed with high probability that the defendants were not properly insured (since if an insurance company had been behind them, it would likely have been sued in addition to them as the insurer). In other words, the defendants will be forced to bear the full amount of the high compensation themselves, without insurance coverage behind them.
Moreover, the lawsuit was filed not only against the construction company, which is a limited liability company, but also directly against the skeleton designer personally. Even without the need to lift the company's legal incorporation veil, but by virtue of the skeleton designer being a very senior figure in the company, and its sole director.
Planners such as the skeleton planner in the above ruling, who is an engineer by training and education, are exposed to claims that can amount to huge sums. In the absence of adequate insurance coverage in terms of professional liability, these claims may cause personal damage, financial ruin, emotional distress, and harm.
(Human) in the name of good, legal expenses, etc.
It should also be noted that professional liability insurance is insurance that must be held at any given time, as it is a policy based on the "date of filing the claim" (Claims Made). That is, in order for the insurance to be valid, two cumulative conditions must be met:
- The insured had a valid policy at the time of planning.
- The insured had a valid policy at the time the claim was filed.
The quality of professional liability insurance is derived from the task of emphasizing all the conditions of coverage, and minimizing the "holes in the net". This is done while taking into account the totality of the risks that lie ahead for the insured. Similarly, an optimal balance must be created between broad coverage and an attractive premium (according to commercial considerations, of course). Therefore, it is unfortunate to know that many planners do not emphasize the full attention required for this, and resort to taking out professional liability insurance only in order to meet the conditions of tenders (while trying to strive for the minimum cost from their point of view).
The claim can be filed even after years.
Please note that when it comes to planners, claims for professional negligence can be filed even many years after the project was designed and completed. The statute of limitations begins to run from the date the defect was discovered, not the date of execution or planning. Sometimes the claim is even filed after the planning office has closed, and sometimes even against the heirs of a deceased planner.
The nature of professional liability insurance is measured, among other things, by maximum liability limits, run-off coverage for protection after cessation of activity and for a significant period, extension of the disclosure period in cases of non-renewal of a policy by the insurance company, maintaining insurance continuity in the transition between policies and projects, and more.
Highlights regarding professional liability insurance for planners
"Professional Liability Policy" and the date of filing the claim
A professional liability insurance policy, as a civil engineer or architect, is the only defense a supervisor can have against claims alleging negligence.
It is important to know that professional liability insurance for supervisors (and in general) is a policy based on the "date of filing the claim" (Claims Made). In order for the coverage to be valid, two cumulative conditions must be met:
- The inspector had a valid professional liability policy at the time of the incident.
- The inspector had a professional liability policy at the time the claim was filed.
Please note that the purpose of a professional liability insurance policy for inspectors is not only to help cover compensation that the inspector will be required to pay. The insurance also provides coverage for the legal expenses (within the limits of liability set out in the policy*) of conducting the trial.
When a "lawsuitable" event occurs on a construction site, it is likely that the lawsuit will be filed against all parties involved. Starting from the client and the construction operator, through the subcontractors, and of course ending with the planners, supervisors, third parties, and more. Although the lawsuit may be dismissed against some of the defendants, the conduct of the trial itself requires significant financial expenses.
Even a construction inspector who acted with the utmost professionalism, and whose performance was excellent, may be required to defend himself in court. Law firms that represent construction inspectors are specialized firms whose fees are charged accordingly. Without a valid professional liability insurance policy for inspectors, the legal expenses will be borne by the defendant.
פוליסה לביטוח אחריות מקצועית, בהיותם הנדסאים או מהנדסים או אדריכלים היא המענה היחיד שיכול להיות למפקח כנגד תביעות הטוענות לרשלנותו.
חשוב לדעת כי ביטוח אחריות מקצועית למפקחים (ובכלל) הוא פוליסה שהבסיס שלה הוא "מועד הגשת התביעה" (Claims Made). בכדי שהכיסוי יהיה תקף, חייבים להתקיים שני תנאים מצטברים:
המפקח היה בעל פוליסת אחריות מקצועית תקפה במועד האירוע.
המפקח היה בעל פוליסת אחריות מקצועית במועד בו הוגשה התביעה.
שימו לב כי מטרתה של פוליסת ביטוח אחריות מקצועית למפקחים איננה רק לסייע בכיסוי פיצויים אותם המפקח יידרש לשלם. הביטוח מעניק גם כיסוי עבור ההוצאות המשפטיות (בגבולות האחריות הקבועים בפוליסה*) של ניהול המשפט.
כאשר מתרחש באתר בנייה אירוע "בר-תביעה", סביר להניח שהתביעה תוגש כנגד כל הגורמים המעורבים. החל ממזמין העבודה ומבצע הבנייה, דרך קבלני המשנה, וכלה כמובן במתכננים, במפקחים, בצדדים שלישיים ועוד. למרות שייתכן שהתביעה תדחה כנגד חלק מהנתבעים, ניהול המשפט לכשעצמו דורש הוצאות כספיות לא מבוטלות.
גם מפקח בנייה שפעל במקצועיות יתרה, ושתפקודו היה לעילא ועילא, עלול להידרש להגן על עצמו בבית המשפט. משרדי עורכי הדין המייצגים מפקחי בנייה הינם משרדים בעלי מקצועיות מיוחדות אשר שכר טרחתם בהתאם. ללא פוליסה תקפה של ביטוח אחריות מקצועית למפקחים, ההוצאות המשפטיות תוצאנה מכיסו של הנתבע.
מסמכים
