Architects/Engineers Professional Liability By the Numbers

Some interesting facts and statistics for design professionals-

One – The most common policy term among architects/engineers for Professional Liability is one year.  Some carriers offer multi year policies for different sized firms; however one year is the most common.

Two – on average most claims are filed two to three years after substantial completion of a project.  This means that once the project is complete most claims, are filed, on average, within two to three years.

Three – The number of years that Travelers and Victor O. Schinnerer have policies terms for small firms.  Other carriers such as Navigators and RLI offer two year policy terms.

Four – There are four commons types of insurance for architects/engineers.  Professional Liability, General Liability, Umbrella and Workers Compensation are the most common types of insurance that design firms carry.

Five – The maximum amount of years that your firm can get an extended reporting period from most carriers.  The options on the extended reporting period or tail policy are 1, 2, 3 or 5 years.

Six – Most frequent types of claimants for architects/engineers – 1. Project owners, 2. General contractors, 3. Third party. 4. Bodily injury 5. Specialty contractors 6. Other claimants.  These are the parties that file claims against architects/engineers most commonly.

Seven – The number of key risk factors for architects/engineers is seven– clients, projects, your firm, consultants, time & budget, contractors and contracts.  Be aware of the risk management practices that your firm has in place for each project.

There are many things to think about when it comes to a Professional Liability policy.    Please be sure to ask questions of your Professional Underwriter agent with regards to Professional Liability.