Professional Liability Insurance for Architects, Engineers and Design Professionals
Professional Liability insurance protects architects, engineers, environmental consultants, land surveyors, and other building design professionals in the event a client alleges that you were professionally negligent or failed to perform the duties as promised in your contract.
Professional Liability Coverage Includes
Professional Liability insurance includes legal defense costs—no matter how baseless the allegations. It will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.
Some of your clients may require that you and your subcontractors carry Errors & Omissions insurance. The right kind of E&O policy can protect both the service firm and subcontractors from claims of a perceived error or omission, even if the problem occurs months after the initial job.
Additional Coverages for Professional Liability
Your Professional Liability Insurance policy for architects and engineers can include:
- A business owners package that includes general liability insurance and property insurance
- Options including coverage of personal injury claims
- Defense costs outside the limits of liability
- Deductibles beginning at $0
Errors & Omissions Is Different Than General Liability
Errors and Omissions insurance coverage is not provided by a Commercial General Liability policy. Commercial General Liability does not provide coverage for errors, contract performance disputes or any other Professional Liability issues. Property management consultants and companies who have General Liability without Errors & Omissions coverage are taking a serious risk.
What is Claims-Made Coverage?
Most professional liability policies operate on a claims-made basis. That means that you must have a policy in good standing when an incident occurs and when you file a claim.
For most architectural, engineering, or design firms it’s best to continuously carry professional liability insurance for the life of the business. Otherwise, you risk having a claim denied if you’ve canceled your policy.
What are Professional Liability Coverage Limits and Deductibles?
The coverage limit on your policy is the maximum amount your policy will pay per year in the event of a professional liability claim. Professional liability insurance is sold in increments of $1 million—a level we recommend to even small and startup firms. The deductible on your policy is the amount you must pay out of pocket before your policy covers a claim. This dollar amount is sometimes referred to as co-insurance and it’s something we will work with you to determine based on several factors of your business.