Important Insurance Terms for Architects and Engineers

There are many terms when it comes to insurance policies, below is a list of some of the terms that will be significant for your firm.

Dec page – Also know as declarations page, this is the first few pages of the policy that includes information such as policy number, effective dates, named insured, address, premium, limits of liability and deductible.

Loss runs – The loss runs is the claims history report of any policy.  If your firm has had any claims, it will list the name of the claim, the expenses paid and indemnity or damages paid out.  Each insurance company has a different way that they set up the loss runs however this is typically the key information included.

Extended Reporting Period (ERP) – The ERP is specifically on a Professional Liability policy.  An ERP can be purchased after a policy is cancelled or non-renewed, it is an extended period of time (1, 2, 3, or 5 years) that claims can be reported.

Waiver of subrogation – Is an endorsement, or may already be included in a policy, that prohibits an insurance carrier from recovering the money they paid on a claim from a negligent third party. An owner client may require this endorsement from their design professionals to avoid being held liable for claims that occur on their jobsite.

Hired and non-owned auto liability – This coverage provides liability for bodily injuries or property damage that you or your employees cause while driving for work.  The coverage does not pay for collision damage; you will still require a separate policy for that. This policy is strictly for liability associated with accidents, so if someone involved sues you claiming that you were negligent.

There are so many terms out there in the insurance world and it can be confusing.  If there is ever insurance terms that your firm has come across please be sure to check with your Professional Underwriters agent for assistance.