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Zach Waters
Zach Waters is the founder and CEO of Black Swan Risk Management, a specialized risk management firm dedicated exclusively to architects and engineers. With a professional background that intersects between legal tenets, insurance practices, and contract negotiation, Zach has become a well-versed expert in managing the intricacies related to risk in the architectural and engineering sector. His company aims to simplify the complexities of risk management and empower their clients to navigate through unpredictable and severe events.
Episode Summary:
In this episode of Design Development, hosted by Rens Hayes of H+O Structural Engineering, the focus is on real estate development, design, construction, and professional liability insurance. Zach Waters, CEO of Black Swan Risk Management, shares his expertise on liability insurance, risk management, and essential contract details for AE firms.
Zach begins with riveting examples of professional liability insurance cases, such as the Millennium Tower incident and a devastating bicycle accident, showing how exposure can lead to unforeseen liabilities even in seemingly unrelated events. The discussion transitions to emphasize the importance of understanding and negotiating contract languages like limitation of liability and the notable differences between 'at fault' and 'exposure'. He stresses the importance of understanding contract language, like limitation of liability, and the risks of poorly reviewed agreements. Zach also covers cyber insurance, construction risk management, and the significance of clear scopes of work.
Key Takeaways:
- Exposure vs. Fault: Understanding that exposure to claims can lead to significant financial burdens even without direct fault.
- Importance of Limitation of Liability: How capping your liability through specific contract clauses can protect your business from massive financial hits.
- Contract Language: The critical role of precise contract language in ensuring your insurance policy covers potential liabilities.
- Cyber Insurance: The growing importance of cyber insurance in safeguarding against modern digital risks and how even small firms are vulnerable.
- Risk Management Practices: Integrating comprehensive risk management strategies within firms to avoid long-term detrimental impacts.
Resources:
- Black Swan Risk Management: Black Swan Risk Management Website
- Zach Waters' LinkedIn: Zach Waters on LinkedIn
- 'The Black Swan: The Impact of the Highly Improbable' by Nassim Nicholas Taleb
- 'Atomic Habits' by James Clear
- 'Start with Why' by Simon Sinek
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