Can my architecture/engineering firm switch insurance companies on our professional liability policy at renewal? This question comes up often with design firms at renewal time. Your firm can switch insurance companies at renewal time although if your firm can stay with the same insurance company, that is always better. It is better because your firm has a relationship with that company, your firm may get longevity credits, and the stability is always better.
If your firm does decide to change insurance companies here are some things to look out for.
Is the insurance company offering full prior acts or a retroactive date to the start of your business. There are times an insurance premium is quite a bit lower, and it is tempting to change insurance companies. But probably one of the more important pieces of a professional liability policy is the retroactive date the insurance company is offering.
Another suggestion if you are looking to change insurance companies is to review the policy and specifically the exclusions. If your firm does residential work and the policy is excluding that type of project, then it doesn’t make sense to change insurance companies. Also reading the specific provisions such as the hammer clause and pre-claims assistance, is really important.
Sometimes a surplus lines insurance company will provide a quote for your firm. These premiums will seem lower, but it is really important to read the fine print and also review the surplus lines insurance company. They are not bad, it is that the surplus lines companies are not backed by each State and are not under the Guaranteed Association Act.
If you have questions about switching professional liability insurance companies please call, or email, your Professional Underwriter agent for assistance.