That’s good to know!  Things you may not have known about Professional Liability, Workers Compensation and Business Owner policies

There are so many intricacies with insurance; there are a few highlights and things to know about different insurance coverage’s for design firms.

Professional Liability claims, on average, are filed two to three years after substantial completion of the project.  Keep in mind this is just an average, that doesn’t mean that claims can’t be filed beyond this time; it will depend on the different statute of limitations and repose in the specific state that the project is located.

There are four states (North Dakota, Ohio, Washington and Wyoming) in the United States that are monopolistic states for Workers Compensation policies.  Meaning that if you are domiciled in these states or work in these states you have to purchase that states Workers Compensation policy.

Business Owner policies include three primary coverages that your design firm may require.  General Liability is included, which is the ‘trips and falls’ type coverage for negligence outside of your design work.  Also included is automobile liability that protects your business from liability that is related to autos that you or your employees drive (aka Hired and non-owned auto).  Lastly, the Business Owner Policy includes Business Personal Property; this is coverage from everything from paperclips to desks in your office.

If your firm is doing design work outside of the United States make sure you check with your Professional Liability carrier to verify your policy has worldwide coverage.  Your firm will also need to check the country rules and laws to find out if the insurance you carry will be accepted in that country.  Mexico, for example, requires that your firm purchase a separate policy in the country for the project.

If owners, partners and corporate offices are included on the Workers Compensation policy the salary used for rating has a maximum amount.  In 2016 the maximum was $52,300 and in 2017 it is $53,700.

Your Business Owners policy may have some additional coverages for your firm.  Some of those coverages are fine arts, valuable papers, employee dishonesty, equipment breakdown and computers and media.  Read your policy so you have an understanding of what is included.

These are just a few highlights and tips that you may not have down about on the Professional Liability, Workers Compensation and Business Owner policies.  Your PUI Agent is here to help or to answer questions, please call or email.