SB261/HB587 has been signed by Governor Ivey and is now law. This is significant legislation that protects Design Professionals in Alabama. What is also significant is that Interior Designers are named in the statute (along with Architects and Landscape Architects, etc.) as recognized Design Professionals in the state.
From the statute:
Section 1. (a) As used in this section, the term "design professional" means a person or entity who is licensed or authorized in this state to practice architecture, landscape architecture, interior design, or geology.
The statute makes Design Professionals responsible for their own professional negligence, but not for mistakes of third parties and others whom they don’t control. Design Professionals’ liability insurance does not provide coverage for defending their clients and others against a lawsuit until a determination has been made that the Design Professional was actually negligent, which creates staggering upfront costs for Design Professionals.
In addition, Design Professionals’ liability insurance does not cover acts of a third party outside the control of a Design Professional, which significantly adds to their financial exposure. American Council of Engineering Companies of Alabama (the bill's primary proponent) and its industry partners asked that the statute narrow -- not eliminate – the obligation a Design Professional must shoulder to indemnify a first-party client to just those situations where the Design Professional has been found to have committed a professionally negligent error.
Thanks to American Council of Engineering Companies of Alabama, AIA Alabama, as well as The Alabama Interior Design Coalition for spearheading and/or promoting this important legislation.
