The high cost of maintaining professional liability insurance is a concern shared by many firms in the architectural/engineering profession. For some, the financial burden posed by escalating premium costs is considerable.

In our continuing efforts to serve the best interest of the profession and the public, AIA and ACEC have initiated an in-depth study of the professional liability insurance problem and possible solutions to that problem. One of these solutions is set forth in proposed federal legislation that would permit design professionals to set aside a portion of pre-tax income from services to pay any ultimate liability resulting from those services. The amount set aside would be placed in a tax-exempt professional liability trust. Attachment 1 explains the provisions of the legislation in greater detail.

But before we proceed with our legislative strategy, we must be able to provide the Congress with a better view of the scope of the problem and the viability of the solution. First, we need to verify the extent and magnitude of the liability insurance problem among profession members. Second, we need to measure the potential utility to firms of the method set forth in the proposal.

To do this, we have engaged the firm of Deloitte Haskins & Sells to conduct a survey of our membership. The survey is designed to provide the documentation we need to secure strong congressional backing for our legislation. Your prompt response is essential

To ensure the confidentiality of the information your firm provides questionnaires will be returned directly to Deloitte Haskins & Sells for tabulation. In no case will specific date from firms be disseminated.

We think the time it will take you to complete the questionnaire will be well spent. We know it will help us better serve you and other members of our profession. Because you are part of a selected sample of architectural/engineering firms, it is important that you respond.

We ask that you please return this questionnaire directly to Deloitte, Haskins, & Sells, 1101 Fifteenth Street, NW., Washington, D.C. 20005 no later than May 30, 1980. A self-addressed, business reply envelope is enclosed for your convenience.

3.

Type(s) of services provided (check all that apply)

4.

Annual gross billings of your firm for each of the last five years (please estimate if necessary)

Projected gross billings of your firm for 1980 and 1981

Does your firm now carry professional liability insurance with a commercial insurance company?

If yes, is it carried because of client requirements?

Aside from insurance carried with a commercial company, does your firm set aside funds or establish reserves for liability claims?

f your firm has carried professional liability insurance during any

of the past five years, please answer questions 7,8,9, and 10.