Geotechnical News March 2011
45
ASFE NEWS
Professional Practice Q&A
Q
I recently became licensed
as a professional engineer,
meaning I can now put my signature on
documents, turning them into instru-
ments of professional service. But what
does that signature really mean?
A
It means a great deal.
Among other things…
• “I abided by the standard of care
(even though I cannot be certain
about what the standard of care was
when I performed the service).”
• “Unless I restrict who can rely on
this document, anyone can.”
• “If someone who experiences a per-
sonal injury alleges that the injury
occurred (at least in part) because
I failed to abide by the standard of
care, I must defend the claim of
professional negligence.”
• “In many states, if someone who ex-
periences property damage alleges
that the damage occurred (at least
in part) because I failed to abide by
the standard of care, I must defend
the claim of professional negli-
gence.”
• “In many states, if a contractor that
bids too low alleges that the loss
occurred because I negligently
misrepresented that my inaccu-
rate findings were accurate or that
I negligently misrepresented that I
abided by the standard of care in
developing my inaccurate findings,
I must defend the claim of negli-
gent misrepresentation.”
• “In all states, if my client alleges
that I failed to abide by the standard
of care, I must defend a breach of
contract claim (even if the damages
are purely economic) and possibly
a negligence claim as well.”
• “I am aware of the severe conse-
quences that occur if I have been
or could be accused of having been
negligent in preparing the signed
instrument of professional service,
including the possibility that the
firm I work for may be unable or
unwilling (in the case of moon-
lighting) to defend me and, as a
consequence, I would have to de-
fend myself (with or without insur-
ance), and may be subject to a judg-
ment that in most states could mean
the loss of my home and savings.”
• “I am aware that my personal liabil-
ity could feasibly follow me into
the grave and prevent settlement
of my estate until the issue is re-
solved.”
• “I have checked and rechecked this
document to help prevent any care-
less errors from sneaking through.”
• “I am a professional. My signature
puts my reputation on the line.”
• “I understand that my signature
subjects me to the potential loss of
license and livelihood if it can be
shown I was intentionally or gross-
ly negligent.”
And here’s a question you didn’t
ask: When I send an e-mail or text mes-
sage about a technical issue, does that
convert the message into an instrument
of professional service? The answer:
Yes.
A Gift from Terra
As many ASFE members know, Terra
Insurance Company was created by
the same people who created ASFE.
At the time, professional liability
insurance (PLI) was unavailable to
geoprofessionals. They saw in Terra the
ability to create a company that could
be a long-lasting source of quality
insurance, no matter what happened to
the market in general. What foresight!
Terra is now the nation’s second-oldest
PLI company and, arguably, its most
successful. The success is particularly
sweet, because the folks who own
Terra are the same people who are the
insureds.
To some extent, Terra looks on
ASFE as the source of loss-preven-
tion and risk-management programs,
services, and materials. By having its
owner/insureds use these, Terra enjoys
extraordinarily good claims experi-
ence. And to further these programs,
services, and materials, Terra gives
ASFE a handsome allocation each
year, allowing ASFE to do some pretty
impressive things for all its members,
not just Terra owner/insureds. Now,
we’ve just been informed, Terra has
decided to increase its support by close
to 10% for the 2011 year, a gift for all
our members to enjoy and benefit from.
Thank you, Terra!
