New Liability Laws for Design Professionals in Florida

As of July 1 2013, Florida Design Professionals have liability protection under the condition they follow specific requirements of the new bill.  Previous court decisions have stripped engineers of the right to enforce liability clauses in design professional contracts.

Under Senate Bill No. 286, signed by Governor Rick Scott in April, redefines the term "design professional to include Geologists . It also specifies that individual design professionals employed by a business entity may not be held liable for negligence.  

In order to be protected by this statute, contracts between the business entity and claimant, must exclude mention of specific design professionals, and include a clear statement specifying that the individual employee or agent may not be held liable.   A design professional will not be held liable for negligence for professional services under these conditions:

1. The business entity must execute the contract with a claimant or with another entity for the provision of professional services on behalf of the claimant; 
2. The contract includes a prominent statement, in uppercase font that is at least 5 point sizes larger than the rest of the text, that, pursuant to this section, an individual employee or agent may not be held individually liable for negligence;
3. The contract does not name the individual employee or agent as a party to the contract;  
4. The business entity maintains any professional liability insurance required under the contract; and any damages are solely economic in nature the damages do not extend to personal injuries or property not subject to the contract.
5. The conduct of the design professional giving rise to the damages occurs within the course and scope of the contract; and
6.  The harm does not extend to persons or property not subject in the contract and is exclusively economic in nature.

If a contract fails to meet these specifications, then a licensed engineer employed through a business entity is not except from personal liability for negligence, misconduct and wrongful acts.  

Visit Florida Senate Bill No. 286, to learn more the liability protection for design professionals. 

For the past 35 years, RGD Consulting Engineers has provided Florida and the Caribbean with mechanical, electrical, plumbing, fire protection and structural engineering services. You can also find RGD on LinkedIn, Twitter and Facebook.