Liability of private professional providers

Ark. Code Ann. § 14-1-512 — under General Provisions.

Ark. Code Ann. § 14-1-512

(a) When performing plan review or inspection services under this subchapter, a private professional provider is subject to the disciplinary guidelines of the applicable professional licensing board with jurisdiction over the private professional provider's license or certification, as applicable.

(b) Any complaint processing, investigation, or disciplinary action that arises from a private professional provider's performance of plan review or inspection services shall be conducted by the applicable professional licensing board unless the action constitutes a violation of a local ordinance or law.

(c) Except as provided under the disciplinary rules of the applicable professional licensing board with jurisdiction over the private professional provider's license or certification, a local government official may decline to accept a plan review or an inspection report submitted by a private professional provider who has submitted multiple reports that required revisions due to:(1) Negligence;(2) Noncompliance; or(3) Deficiencies.

(1) Negligence;

(2) Noncompliance; or

(3) Deficiencies.

(d) A private professional provider providing plan review or inspection services under this subchapter shall secure and maintain insurance coverage under an errors and omissions policy for professional liability insurance.

(e) The limits of the professional liability insurance under this section shall be not less than:(1) One million dollars ($1,000,000) per claim and one million dollars ($1,000,000) in aggregate coverage for any project with a construction cost of less than five million dollars ($5,000,000); or(2) Two million dollars ($2,000,000) per claim and two million dollars ($2,000,000) in aggregate coverage for any project with a construction cost of five million dollars ($5,000,000) or more.

(1) One million dollars ($1,000,000) per claim and one million dollars ($1,000,000) in aggregate coverage for any project with a construction cost of less than five million dollars ($5,000,000); or

(2) Two million dollars ($2,000,000) per claim and two million dollars ($2,000,000) in aggregate coverage for any project with a construction cost of five million dollars ($5,000,000) or more.

(f) (1) Professional liability insurance under this section may be a practice policy or project-specific coverage.(2) If the professional liability insurance under this section is a practice policy, it shall contain prior-acts coverage for the private professional provider.(3) If the professional liability insurance under this section is project-specific, it shall continue in effect for two (2) years following the issuance of the certificate of final completion for the project.

(1) Professional liability insurance under this section may be a practice policy or project-specific coverage.

(2) If the professional liability insurance under this section is a practice policy, it shall contain prior-acts coverage for the private professional provider.

(3) If the professional liability insurance under this section is project-specific, it shall continue in effect for two (2) years following the issuance of the certificate of final completion for the project.

(g) An applicant using a private professional provider shall verify compliance with the insurance requirements of this section and provide the information to the local government official.