On January 20, 2020, AIBC Council approved, in principle, proposed amendments to Council Rules 8: Terms and Conditions for Mandatory Professional Liability Insurance (“PLI”).
Council Rules 8: Terms and Conditions for Mandatory Professional Liability Insurance (“PLI”) was approved in January 2018. As of February 1, 2019, all architectural firms, members and licensees holding a Certificate of Practice were required to hold PLI coverage.
As part of the 2019 Annual Renewal process, staff executed an in-depth review of all PLI submissions. A report on PLI compliance and the implementation process was created; results showed that 42 percent of Certificate of Practice Holders submitted non-compliant PLI certificates (expired Certificates of Insurance, incomplete information, etc.). Given the amount of compliance and operational issues identified in the first year of mandatory PLI, the AIBC did not impose the non-compliance fines per Bylaw 25(a)(viii).
The proposed revisions to Council Rules 8 are informed by the compliance results, questions received throughout the process, and feedback from council. The purpose of the proposed amendments is to provide greater clarity.
The proposed revised Council Rules 8 include the following revisions:
- Rule 1.2 (new) – has been added to mention the addition of commentary embedded in the Rules.
- Rule 2.2 (old) – removed as it is covered in Rule 2.6.
- The new Rule 2.2 replaces the previous Rule 2.3. It has been revised to emphasize that the PLI coverage must be continuous over the term of the Certificate of Practice. It also clarifies the obligation at initial and renewal of registration, and includes commentary to assist with compliance.
- Rule 2.3 (new) – outlines the required information on the Certificate of Insurance for the AIBC to assess compliance.
- Rule 2.4 – revised to further clarify that the PLI coverage must not be limited to certain type of services, building/commissions, and clients. PLI coverage should be aligned with the services that registrants can provide through their Certificate of Practice.
- Rule 2.5 – minor revisions, changing terminology to “Certificate of Insurance” instead of “Certificate of Coverage”.
- Rule 2.6 – revised so the notification of non-compliance is not limited to Rule 2.5.
Rule 2.4 may have significant implications for those Certificate of Practice holders with certain exclusions to their PLI, such as clients, certain building types, or commissions. The intent is to have assurance that insurance coverage is in place for all architectural services that could be provided through a Certificate of Practice.
As per Council Policy 3.10, registrants are given notice regarding any proposed new or amended council rules. The notification period for Council Rules 8: Terms and Conditions for Mandatory Professional Liability Insurance (“PLI”) opens January 23, 2020 and will run until February 24, 2020.
During the notification period, registrants are invited to review the council rules and share their feedback or questions through the online feedback form:
All feedback (without identifying information) is provided to council prior to its consideration and vote on the rules. Council is expected to vote on these rules in March 2020. If approved, the rules will be posted online.