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logologologo
  • About Us
    • Our Team
  • Our Focus
    • Professional Liability Insurance
    • Commercial Insurance
    • Employee Benefits Coverage
  • Risk Management Seminars
  • Newsletters
    • Professional Liability
    • Employee Benefits
  • Contact
  • Request A Certificate
  • About Us
    • Our Team
  • Our Focus
    • Professional Liability Insurance
    • Commercial Insurance
    • Employee Benefits Coverage
  • Risk Management Seminars
  • Newsletters
    • Professional Liability
    • Employee Benefits
  • Contact
  • Request A Certificate
Professional Liability

When Trouble Strikes: A Crisis Management Guide

The following material is provided for informational purposes only. Before taking any action that could have legal or other important consequences, speak with a qualified professional who can provide guidance that considers your unique circumstances.

In the AEC world, crises are always a potential. If there’s a catastrophic failure on one of your projects or one of your executives is arrested, will everyone in your firm know what to do? Who should be notified? What should you communicate to the press, to your clients, or on your social media accounts?

Whether it’s a design flaw, major accident, or legal dispute, how you manage these situations can significantly impact your professional reputation and financial wellbeing. Here is a guide on how to prepare for, respond to, and learn from crises.

Before a Crisis: Preparation is Key

Develop a Crisis Management Plan

The foundation of effective crisis management is a well thought out plan. This plan should outline procedures for various high-risk scenarios, ensuring that your firm is prepared for any situation.

   

Anticipate High Risk Scenarios

Identify – and internally talk about – potential crises that could impact your projects. Whether it is a structural failure, environmental concern, or contract dispute, understanding where risks lie allows you to prepare more effectively.

Create a Resource List

Compile a comprehensive list of key contacts—such as insurers, lawyers, experts, and government agencies—who can mobilize within the first hour, first day, and first week of a crisis. Ensure this list includes updated contact information.


Assemble and Train a Crisis Management Team

Select a team that will be responsible for managing a crisis. This team should be trained to issue notifications, coordinate information flow, and conduct investigations. Designating a leader to oversee the process is critical. This team should include representatives from different departments (and possibly your other office locations), such as communications, legal, financial management, IT, and HR.

Run Emergency Drills

Regularly conduct drills that simulate potential crises. These drills will help your team understand their roles and responsibilities and identify any weaknesses in your plan.

Identify a Public Relations (PR) Firm

Establish a relationship with a PR firm before you need one. This ensures that you are not scrambling to find help when a crisis hits.

Develop a Forensic Specialist List

Maintain a list of forensic specialists who can assist in investigating and documenting the cause of the crisis.

Implement Document Management Software

Consider using software that facilitates easy storage and retrieval of project related documents. This can be invaluable during a crisis when quick access to accurate information is crucial.

When Trouble Strikes: Immediate Actions

Convene the Crisis Management Team

Time is of the essence. As soon as a crisis occurs, bring your team together – virtually or in person – to assess the situation and implement your plan.

Contact Insurance and Legal Advisors

Reach out to your insurance broker and lawyer immediately. They can guide you on the best course of action to protect your firm.

Control Internal and External Communications

Instruct employees to refrain from discussing the incident externally. Designate a sole media contact and develop clear talking points.

Engage Your Public Relations Firm

Contact the PR firm identified in your plan to help manage the public narrative. A consistent and controlled message is crucial to maintaining your firm’s reputation. Make sure your legal counsel is aware of your PR efforts to ensure they do not negatively impact legal strategy.

Preserve Critical Evidence

Safeguard all relevant documentation and evidence. Involve legal counsel in the creation of any new documents, communications, or other recordings related to the crisis.

Keep Business Operations Running

It is essential to maintain your business operations to minimize the impact on other projects and clients.

Support Your Employees

Ensure that your team receives the support they need, including grief counseling and time off. Taking care of your people during a crisis is vital to sustaining employee well-being.

During a Lawsuit: Strategic Management

Keep Employees Informed

Regularly update your team on the status of any legal proceedings and instruct them on how to handle inquiries. Transparency within your firm is key to maintaining trust and unity. Engage legal counsel as you prepare these communications to make sure legal strategy and privilege remain protected.

Stick to the Script

Refer all media inquiries to your designated media contact and adhere strictly to your prepared talking points.  In the face of finger pointing, avoid engaging.

Focus on Client Service

Despite the ongoing crisis, continue to provide top quality service to your other clients. This not only protects your reputation but also helps retain client trust.

Set Aside Time

Litigation requires a significant amount of time, whether it is for gathering documents, preparing for a deposition, or reviewing strategy with your legal counsel. Make sure to maintain your work calendar in a way that enables you to focus on the litigation and allows for flexibility, including delegating duties to others and blocking off time.

Keep Settlements Private

If a settlement is reached, strive to keep the details out of the public eye. This can prevent further damage to your reputation.

Post Crisis: Reflect and Refine

Debrief with the Crisis Management Team

After the dust has settled, conduct a thorough debriefing with your team. Discuss what went well and what could have been handled better.

Document the Process

Keep a detailed record of the crisis management process and debrief for future reference. This documentation can be invaluable for training and improving your plan.

Examine Lessons Learned

Analyze the lessons learned from the crisis. Understanding these insights can help prevent similar issues in the future.

Update Your Crisis Management Plan

Update your crisis management plan after a crisis and on an established schedule. Incorporate the insights and experiences from a recent crisis into your existing plan. Regular updates ensure your plan evolves to meet new challenges and best utilizes evolving resources.

Conclusion

Crises are an unfortunate reality in the AEC industries. However, with thorough preparation, a swift and organized response, and a commitment to learning from each experience, your firm can navigate these challenges effectively. Proper crisis management not only protects your firm but also strengthens it’s resilience and reputation.

PLAN Knowledge & Resource Committee

Michaela Kendall, Strategic Partnerships, AXA XL Design Professional

Can We Be of Assistance?

We may be able to help you by providing referrals to consultants, and by providing guidance relative to insurance issues, and even to certain preventives, from construction observation through the development and application of sound human resources management policies and procedures. Please call on us for assistance. We’re a member of the Professional Liability Agents Network (PLAN). We’re here to help.

STUCKEY INSURANCE focuses on providing Professional Liability and Employee Benefits for Architects, Engineers, Accountants, and Attorneys in Arizona.  Please call us if you would like to schedule a consultation for your other insurance needs.

Legal Disclaimer: This message does not and is not intended to contain legal advice, and its contents do not constitute the practice of law or provision of legal counsel. The sender cannot be held accountable for actions related to its receipt.

2850 E Camelback Rd., Suite 325 | Phoenix, AZ 85016
Phone: (602) 264-5533
E-mail: stuckey@stuckeyinsurance.com

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