In 2003, the Ontario government adopted the regulation (previously known as Bill 124) requiring individuals submitting designs of any type to municipalities to obtain a Ministry-issued designer registration number. This number is issued after successful completion of the appropriate Ministry examinations based on the contents of the Ontario Building Code.

Within this regulation is a requirement for E&O insurance to cover the design function. The individual/company must obtain the appropriate E&O insurance to cover the design function prior to applying to the Ministry for a registration number that satisfies the following: $1,000,000 per claim and $2,000,000 in the aggregate if the person bills $100,000 or more in fees in a 12 month period; $500,000 per claim and $1,000,000 in the aggregate if the person bills more than $50,000 and less than $100,000 in fees in a 12 months period; $250,000 per claim and $500,000 in the aggregate if the person bills less than $50,000 in fees in a 12 months period.

HRAI says most members do not have a professional designation and are finding it extremely challenging to find this type of insurance.

The E&O group insurance program is available to HRAI member companies employing HRAI-certified persons in all the disciplines of: Residential Heat Loss/Heat Gain, Residential Air System Design, and Residential Mechanical Ventilation (Install and/or Design).

The insurance underwriter will recognize HRAI certification as an insurable designation because the training curriculum is based on national standards and codes, includes the arbitration/decertification process to maintain the integrity of the certification, and has a recertification process to update certification holders. HRAI emphasizes the E&O coverage is over and above the company's general liability insurance, which is a requirement to participate in this group insurance program.

Publication date: 02/28/2005