Welcome back to our CDFA Spotlight series! After a brief hiatus, we're excited to return with fresh stories and insights from our members who have recently achieved their Certified Design Firm Administrator designation. Our time away has been spent gathering some truly inspiring interviews, and we’re eager to share them with you. This week, we’re proud to feature Viviana Garcia, CDFA, Operations Manager with Michael G. Imber Architects in San Antonio, TX.

What motivated you to earn your CDFA certification?

I wanted to gain more knowledge in the business of architecture and felt learning the different aspects of administration would help me grow in my profession.

Did you have any concerns, or fears, about taking the exam? If so, how did you address or overcome them?

My concern was allocating enough time to study and managing my personal time. I studied during lunch hours and at night.

What role, if any, has your CDFA played in advancing your professional or personal development, growth, network or career?

This helped in my personal development, but I feel my office is not very aware of the value of having the CDFA designation.

What is your top tip to someone considering the pursuit of a CDFA designation?

Do not be afraid to reach out to others for questions; everyone I have met within SDA has been so helpful.

What has obtaining your CDFA meant to you?

It has brought me insight to the business of architecture and, more importantly SDA has given me the knowledge to help me grow in my job.

Feeling inspired by our CDFA Spotlight features? If you're ready to elevate your career and join the ranks of Certified Design Firm Administrators, now is the perfect time to take the next step. The CDFA designation not only strengthens your skills but also positions you as a leader in our industry. Visit our certification page to learn more about the application process and how you can start your journey today!

In the world of business, risk management is a crucial component for ensuring smooth operations and safeguarding against potential liabilities. The Certificate of Insurance (COI) is a key tool in this process. Understanding a COI, why it is necessary, and how to read and manage it can significantly enhance your business's risk mitigation strategy. Here’s an in-depth look at Certificates of Insurance.

What is a Certificate of Insurance (COI)?

A Certificate of Insurance is a document that serves as evidence of insurance that an outside organization or company has insurance should an accident occur.  It summarizes the policyholder’s coverage, detailing the types of insurance, limits, and other critical information. However, it is essential to note that a COI is only valid for the period specified and must be reissued when the policy is changed or renewed. Note that a COI is not an insurance policy and provides only general information. 

Why are COIs Necessary?

1. Risk Transfer: COIs are vital for transferring risk from one party to another, ensuring that the financial burden does not fall solely on your business in the event of a claim.
2. Mitigation of Risk: COIs help mitigate potential risks by verifying that all parties involved in a project are adequately insured.
3. Ensure Alignment with Contract Requirements: Clients often require specific insurance coverages for a project. Ensuring that your sub-consultants comply with these requirements is crucial. If they do not, your firm could be liable for any gaps or excess above their insurance limits, leading to unnecessary exposure.

How to Read a Certificate of Insurance and What to Look For

These definitions and explanations are referenced by number on the Certificate of Insurance image - click here for complete form.

1. Producer: Individual or business entity licensed by the state to sell, solicit, or negotiate insurance.
2. Insured: The named insured is the primary entity covered by the insurance policy.  Confirm that the named insured is the entity you are doing business with. Being listed as “additional insured” on the Certificate has limitations, and your entity may have no legal rights or access to the stated coverages. Insurance companies can and do deny coverage to entities named as “additional insured” on the Certificate. This is why you need an Additional Insured Endorsement; it changes the insurance policy, adding your entity to the definition of Who Is Insured or Covered.
3. Insurance Agent/Broker/Contact: An insurance agent or broker sells insurance policies and provides related services, often working for a producer. They act as intermediaries between insurance companies and customers, helping clients find the right coverage for their needs.
4. Insurer(s) Affording Coverage: The name(s) of the insurance company providing the coverage. Note that there may be multiple insurance companies involved.
5. Types of insurance, coverage included, and policy effective/expiration dates: Check the types of insurance listed and the corresponding coverages. Note the policy dates and ensure they cover the period you require.  Look for check boxes that provide important information about the coverage.
6. Limits and Coverages: Understand the limits and coverages, distinguishing between each occurrence (maximum coverage per individual claim) and general aggregate limits (maximum coverage for all claims within the policy period). These are the maximum amounts the insurance company will pay for covered claims. The only reliable way to verify whether the limits have been reduced is to obtain a current loss report from the insured for the policy period. You may have specific coverage limits required by your client and will want to ensure that your sub-consultant carries the same or higher amounts to avoid leaving your firm in the gap.
7. Descriptions of Operations: Ensure that the operations described match the scope of work covered by the insurance, for the project. If additional insured or endorsements are included for a given project, they are listed here.
8. Certificate Holder: A certificate holder is an individual or organization that receives a certificate of insurance from a policyholder. If your company is the certificate holder, ensure your business name and address are correct on the certificate. When sending a Certificate of Insurance (COI) to a client or other party, verify that their address is accurate.
9. Cancellation Notice: Check the notice period to understand how much advance notice you will receive if the policy is canceled.

Types of Coverage

1. Commercial General Liability: Typically, covers bodily injury, property damage, personal and advertising injury, and medical payments resulting from business operations.
2. Automobile Liability: Provides coverage for vehicles used in business operations.
3. Umbrella or Excess Liability: Offers additional coverage limits above primary policies.
4. Workers’ Compensation / Employer’s Liability: Covers employee injuries and illnesses that occur in the course of employment.
5. Professional Liability: Protects against claims of professional negligence, errors, omissions, or mistakes. It can be either claims-made or occurrence-based.
6. Pollution Liability: Covers liability for pollution-related incidents.
7. Cyber Liability: Provides coverage for businesses against risks related to cyberattacks, data breaches, and other technology-related issues.

Additional Considerations

1. Additional Insured: If required, ensure your firm is listed as an additional insured and that the endorsement adding your firm is included with the COI. An endorsement changes the policy to add your entity to the definition of who is insured (covered).  A statement on the certificate is insufficient to prove that coverage is extended to your firm. Most Professional Liability Coverages, as described below, do not permit adding entities as "Additional Insured." Consequently, if a claim arises, the insurance company will not cover any losses for or caused by the additional insured.
2. Understanding Primary & Non-Contributory: This clarifies the priority and obligation of an insurance policy in the event of a claim. The primary insurance policy responds first, paying up to its coverage limit before any other policies are triggered. Non-contributory insurance prevents the primary insurer from sharing the loss with another insurer, ensuring that the primary policy handles claims without seeking contributions from other available insurance policies.
3. Waiver of Subrogation: This prevents the insurer from pursuing recovery from the third party that caused the loss, ensuring that your business does not become entangled in subrogation claims.

Post-Project COI Requirements

Even after a project is completed, it is essential to maintain COIs for a specific period, typically ten years post substantial completion or according to the state’s statute of repose. This ensures continued coverage for any claims that might arise after the project's completion.

Certificates of Insurance are an integral part of a robust risk management strategy. By understanding their importance, how to read them, and the various types of coverage they entail, businesses can better protect themselves and ensure compliance with contractual requirements. Stay vigilant and proactive in managing your COIs to safeguard your business against potential risks and liabilities.

Want to Learn More? Check Out This Resource:

SDA Webinar Recording - Understanding and Complying with Client Insurance Requirements

As a 20 year member of SDA, and a member of the AEC industry for almost 25 years, I have been witness to a fundamental change in our industry and the professional responsibilities of our members.  I have held operations positions ranging from secretary to administrative assistant, office manager, associate and vice president. 

For all of those years, the SDA has been the catalyst to highlight the incredible value of administration and operations.  I never believed my position should be limited, since I felt I needed to understand the full picture of my company and its functional departments in order to best provide value.   But never have I felt the reality of our power than in this year’s convention, EDSymposium24 in Colorado Springs.

I felt a powerful focus this year by many of our speakers on the limitless abilities of operations staff in our firms.  Several speakers in particular delivered this message very clearly:

·      FMI Consulting presented a “Strategic Value Blueprint” (attached) which had a chart showing the functions of a firm.  They asked us to look at the chart of 24 areas and answer the following questions:  Where do I fit in?  Who do I impact?  What company processes support me?  How does my role impact other processes?

The chart listed functions and processes, not departments, such as Reputable Brand; System, Security & Innovation; Payment and Collection; Managing Teams; Project Coordination; Local Expertise; and Legacy Relationships.  Looking at the big picture of expertise rather than segregation into departments made it obvious that operations has a vital impact on the major functions of our companies.

·      NCARB provided a 2 ½ page list of specific competencies where administrators can provide essential services to our firm, such as helping develop leadership skills within the firm, contract administration, staffing planning, reviewing legal documents related to the site, developing tracking systems, and managing project closeout procedures.

·      Deborah Gill, CPA FSDA of Profit by Design, focused on Firm Succession Planning and made a powerful case that operations can play a fundamental role in both recognizing the need for a firm to create an exit strategy for firm principals and adding value to the process as the company begins that journey through merger/acquisition of the firm, either external or internal, and principal retirement/exit options. 

·      The CDFO inaugural Accreditation Process, which was announced at EDS24, is a revitalization of the CDFA certification, which will change the Certified Design Firm Administrator (CDFA) program to a Certificate in Design Firm Operations (CDFO).  The CDFO adds leadership as a dimension to the CDFA and transforms the administration section of the resource guide to a broader Operations expertise.  The Operations knowledge will be expanded to include areas such as strategic planning, firm governance, firm transition, team communication and management, and IT apps and systems used for collaboration.

Beyond the presentations described above, I felt the energy of our members as they spoke of the reality of their experience and transformed careers.  I believe SDA is on the brink of a new era which will create concrete value in the Operations arena.  Join us in remaking and enriching our career responsibilities! 

We visited with Pat about her EDS24 experience. Click here to listen to the interview.