What is Rectification Expense Coverage?
Rectification Expense Coverage is a special add-on often found in Architects & Engineers (A&E) Professional Liability policies. Here’s what it actually protects you from — in simple terms:
What It Covers
Rectification coverage (sometimes called mitigation of loss coverage) pays for the cost to fix a design error before it becomes a bigger, more expensive claim.
In other words, if an architect or engineer realizes their design mistake early—before the client suffers a financial loss—this coverage helps pay to correct it.
Why It Matters
Normally, professional liability insurance only pays after a claim is made by a client. But rectification coverage steps in before a formal claim, allowing the firm to fix the problem quickly. This can:
- Prevent a project shutdown
- Reduce overall liability exposure
- Avoid lawsuits
- Keep client relationships positive
Examples
- An engineer discovers a miscalculation in load capacity after construction has begun. Rectification coverage can help pay for the redesign and necessary corrective work.
- An architect realizes that the HVAC layout is impossible to build as drawn. This coverage helps pay for the redesign and associated costs of correction.
What It Typically Pays For
- Redesign costs
- Consultant fees
- Necessary demolition or modification related to fixing the error
- Overtime or expedited design work
What It Doesn’t Cover
- The cost to fix construction defects caused by contractors
- Upgrades or improvements not related to the error
- Pure cost overruns unrelated to professional negligence
For more information please contact your Professional Underwriters, Inc. agent or please contact us here.