Source: Professional Underwriters Agency (PUA)

A mechanical engineer was retained to provide mechanical and plumbing design and construction administration  services on a condominium project. The owner sought to use a specific mechanical system, which the insured was not  familiar with, for part of the project and asked the architect to hire another mechanical engineer to design this portion of  the project. When this specialized mechanical system failed, the insured was named as a defendant in the owner’s lawsuit.  Although the insured did not design the specialized  mechanical system, because said system tied into the insured’s design, the insured had exposure and the litigation was settled with a contribution of more than $500,000 on the part of the insured.