Insuring Your Watercraft Did you know that not all watercraft are automatically covered under your Home Owners Personal Liability coverage? Protect the life you love, on the water and off. With Hanover Insurance Company’s watercraft coverage and the help of your…

Contract on Projects – The Importance Contracts should be the start of each and every project for your firm. This lays out the groundwork for what will take place during and after the project. Contracts, first and foremost, are important…

Graduation Party – Social Hosting Liability The state of Michigan defines a Social Gathering as “an assembly of two or more individuals for any purpose, unless all of the individuals attending the assembly are members of the same household or…

The dos and don’ts of a workers compensation policy for architects/engineers- While the workers compensation policies to not have a high frequency of claims for architects/engineers, there are still items to be aware of with the policy. Do provide correct…

Defending Professional Liability Claims Your professional liability insurance policy is a contract that covers you for wrongful acts in the performance of your professional services. Your carrier has two separate obligations to your firm: 1) to defend you; and 2) to pay any judgment for…

Business Owner Policy – Dos and Don’ts for Architects/Engineers The business owner policy is not one that has many claims for architects/engineers but are an important part of business. Here are some suggestions on the dos and don’ts of a…

Dos and don’ts of professional liability for architects/engineers- There are many intricacies to a professional liability policy, here are some suggestions on the policy. Do complete the application as accurately as possible. It is important to provide the insurance companies…

It’s not uncommon to see commercial drones, unmanned aerial vehicles (UAVs) or small unmanned aerial vehicles (sUAVs) at a construction site. They can help construction businesses in many ways, such as:   Monitoring projects for employee safety Surveying large sites…

Choosing Deductibles Choosing deductibles for architect/engineer insurance policies. Depending on the policy there may be different deductibles and deductible options available. Workers compensation policy insurance companies may offer a deductible, depending on the state your firm is domiciled. The deductibles…

Spring Clean Your Insurance Spring is a great time to review of your insurance coverages. As your life changes so do your insurance needs and your insurance policies should be evaluated annually. Take the time to read them over and ask yourself…

Claims expenses in an architects/engineers professional liability policy- The expenses will include items such as investigation, attorney fees and expert witnesses, if needed. The following is a definition from a professional liability policy. “Claim Expenses” means: a. reasonable and necessary fees, costs and expenses…

Motorcycle Insurance The Insurance Information Institute issued tips for the cost-conscious rider, like finding the right motorcycle insurance for you and your bike. Click HERE for full article. Choosing the right insurance is like choosing the right bike; you need it to fit you! Liability insurance is a…

Professional Liability Pre-Claim Assistance Using the Pre-Claim Assistance Process Disputes happen. Dissatisfied clients, construction firms with cost recovery programs, injured third parties, and other claimants often try to tap into the insurance and financial assets of firms to solve real or…

Why did my architecture/engineering firm’s professional liability policy premium increase? There are several factors that go into rating a professional liability policy premium, here some examples of why your firm’s premium may have increased. An increase in billings can have…

Mediation Deductible Credit on Professional Liability for Architects/Engineers Most insurance companies will offer a deductible credit when your firm successfully has mediation in the event of a claim. Check your firm’s policy to verify that this credit is available, below…

Frequently Asked Questions About Michigan Auto Reform Michigan Catastrophic Claims Association refund Recently, the Michigan Catastrophic Claims Association (MCCA) Board voted unanimously to return approximately $3.0 billion of its estimated surplus to its member insurance companies, to be distributed to policyholders…

How is it determined if my architecture/engineering firm has a claim on Professional Liability? A claim is determined by the definition of a ‘claim’ in your firm’s policy. Generally, it will be a demand for money or services. Here is…

Does Having Work-From-Home Employees Change Your Business Insurance Needs? Small business owners are responsible for providing employees with safe work environments. All home-based workers have the same workers’ compensation benefits as in-office employees. Accidents happen during work, and they can just…

Premium credits your architecture/engineering firm can receive on insurance policies- Each type of insurance can provide different premium credits, depending on your firm and your firm’s practices. Professional Liability offers premium credits for several items in the application. For example,…

Certificates of Insurance for Architects/Engineers There are many requests for certificates of insurance from your firms clients. Here are some notes as to what can and can’t be included in the certificate of insurance. Professional Liability, the most common insurance…

Professional Liability Claims for Design Professionals The first indication that a professional liability claim might be made against your firm often comes long before an official demand for money or services alleging your negligence. Warning signs often include a client’s dissatisfaction with services provided,…

Keys to completing a Professional Liability application for architects/engineers There are many details when it comes to completing the professional liability application and it can be helpful to know what the insurance companies are requiring. One of the important details…

Choosing a Deductible on Insurance Policies for Architects/Engineers Each insurance company and each type of policy will have different deductible options. It is good to weigh your firm’s options, if possible, on the deductibles available. For workers compensation policies there…

What is Gap Insurance? Gap insurance (also known as loan/lease payoff) is an optional auto insurance coverage that applies if your car is stolen or deemed a total loss. When your loan amount is more than your vehicle is worth,…

Common Endorsements on Professional Liability Policies for Architects/Engineers While the Professional Liability policy does not have many endorsements because most policy provisions are included in the base policy, there may be some endorsements to keep an eye out for. Your…

What to Expect when Reporting a Home Owners Claim Owning a home can mean dealing with the unexpected. You likely can’t prevent all unwanted surprises, knowing what to expect if you have a homeowner’s claim can help give you some…

Can my architecture/engineering firm change Professional Liability insurance companies at renewal? Although it isn’t typically recommended your firm can change insurance companies at renewal if you choose. There are some issues to consider if your firm does decide to make…

Tips for Selecting Safe Drivers Choosing the right employees to drive for your company is the most basic element in your company’s fleet safety program. Who Are Your Drivers? Anyone who drives a vehicle on behalf of your company, whether…

What is included on a certificate of insurance for architects/engineers? The certificate of insurance is information on your firm’s insurance policies. This does not replace the policy but provides a snap shot of what your firm carries for a policy….

Compliance with Law Clause A “compliance with laws” provision requires that both parties to a contract must comply with the applicable laws with respect to some core aspect of the contract. These types of provisions are common in commercial leases….

Additional Insured Endorsements on General Liability Policies Not all additional insured endorsements are the same, each insurance company has their own endorsements or the language may even be included in the policy rather than added by endorsement. Example one: Additional…

Cyber For Homeowners We get it – understanding how to best protect yourself online can be confusing. That’s why The Hanover believes that cyber protection begins at home. See what The Hanover’s cyber coverage for homeowners does and why it’s so…

Choosing Limits on Policies for Architects/Engineers It can become difficult to know what limits on policies that make sense for your firm. It will vary from policy to policy and the size of your firm. Workers compensation limits will depend…

Keys to a Successful Safety Program Safety is an intricate part of every operation or department within any organization. Many organizations have reduced their injury rates by implementing safety programs as an integral part of their overall risk management operation. Top…

Understanding ‘claims expenses’ on a Professional Liability policy for architects/engineers- Claims expenses are the costs involved in defending your architecture/engineering firm’s claim or circumstance. First it is important to understand what a claims expense is on a professional liability policy….

ADDITIONAL INSURED STATUS ON PROFESSIONAL LIABILITY POLICIES Some clients of design professionals think they can be better protected against third-party claims by being included as a named insured or as an additional insured on a design firm’s professional liability policy….

Can my architecture/engineering firm switch Professional Liability insurance companies? There are several answers to this question when it comes to switching insurance companies. Yes your firm can switch at renewal time. There are a few items to be aware of…

ACEC Economic Impact Report We all know how much the engineering industry affects the world we live in, but when you apply real numbers to the work that is being conducted, the impact that the Engineering world has on all…

Common Exclusions on the Architects/Engineers Professional Liability Policy Here are a list of some exclusions and the sample language from policies. Cost to repair or replace faulty workmanship This policy does not apply to any Claim based upon or arising…

Who Needs Cyber Liability Insurance? Every type of organization, from global companies to mom and pop shops that use technology to do business, face cyber risk. As technology becomes more complex and sophisticated, so do the threats that businesses face. This…

Who is Covered Under a Professional Liability Policy? Professional liability insurance helps cover you and your company if you make a mistake in your professional services. This coverage is also known as errors and omissions insurance (E&O).  The insurance company will pay all…

Professional Services Defined in an Architects/Engineers Professional Liability Policy Insurance companies each have defined what ‘professional services’ are in their policies. This definition in important when your firm is defining your scope of services in a contract. It is equally…

Professional Liability Claim What do I do when I have a Professional Liability claim? Ignore it and hopefully it will go away.  This is not an uncommon response to potentially bad news.  It may be difficult to accept or acknowledge that…

Dispute Resolution It is inevitable that all design professionals will come across a fee dispute during their career. While using a well crafted contract such as the AIA standard form is a great way to mitigate this outcome, there will…

Declarations Pages – What Are They? What are declarations pages on a policy for my architecture/engineering firm? These are the first few pages of a policy that state the named insured, address, policy period, location address, mailing address, policy limits…

Directors & Officers (D&O) Liability Insurance The financial assets of your clients’ organizations and the personal assets of the directors & officers can be at risk with every decision they make. Directors & Officers (D&O) Liability insurance is designed to…

Report a claim or not? The first question your firm should ask, is this a claim based on the definition of claims in your firms professional liability policy. Here is an example from a policy for the definition of a…

Pre-claim assistance is included in most commercially available Professional Liability insurance policies. If you believe your firm needs claim prevention assistance, you should: Contact your broker as soon possible to discuss your concerns. Expect a call from one of our…

Reporting Claims – Architects/Engineers Professional Liability Policy Your firm is responsible for reporting a claim or circumstance to the insurance company as soon as your firm is aware of the situation.  This enables the insurance company to provide defense, if…

 Scope of Services In the design professionals industry, a scope of services sets out precisely what services a design professional will be performing on a particular project. A scope of services may be a  particular document, drafted for a particular project, or may be prepared…

Project Endorsement on a Professional Liability Policy for Architects/Engineers Your firm may receive a request to increase your limits of liability on your professional liability policy for a specific project.   This typically can be accommodated with insurance companies with an…

 Tips to Save Money on Your Professional Liability Policy Premium There are a lot of ways to save money on your professional liability policy premium.  The obvious one is not having any claims.  However this is sometimes out of your…

How does my architecture/engineering firm decide on a Professional Liability insurance company? Since the professional liability policy is where your firm’s biggest risk lies, it is important to have a good company by your side. There are several ways to…

Differences Between Professional Liability and General Liability for Architects and Engineers These policies are different but both necessary in the business of design professionals. Professional liability is for design errors and omissions for architects/engineers. General liability is for risks such as…

Umbrella insurance provides additional liability coverage that can help protect assets such as your home, car and boat. It can also help cover defense costs, attorney fees and other charges associated with lawsuits. What is Umbrella Insurance? Umbrella insurance coverage…

Understanding the Limits of Liability in Your Architecture/Engineering Firms Professional Liability Policy It is important to know the ins and outs of the limits of liability in your policy to help to determine what limits make sense for your firm….

What to do Before a Flood Floods can happen anywhere and just one inch of floodwater can cause up to $25,000 in damage. The best way to protect your home and belongings from flood damage is to purchase flood insurance. Flood insurance…

Client Wants to be a Certificate Holder for your Policies? What does that mean?  A certificate holder is provided evidence of insurance, similar to an auto ID card. The certificate of insurance provides the name of the insured, insurance agent’s…

Insured Status Under the Contractor’s Commercial General Liability Policy The issue of requiring protection for design firms by having them named as additional insured’s on the general liability policies of contractors is complicated. Without the professional advice of an insurance…

How to Reduce Your Professional Liability Premium Professional Liability premiums are higher premium, compared to general liability, for architects/engineers because it is an areas of higher risk. There are ways you can help out in your premium. Risk management is…

Duty to Defend and Indemnification   According to the American Bar Association (HERE), defense and indemnity clauses are routine devices used in construction contracts to shift responsibility for potential risks from one project participant to another. The terms defend and indemnify often appear in…

Policy changes that can be made to a Professional Liability policy for architects/engineers- There are some areas of the policy that can be changed, while other areas of the policy are considered standard policy language. Here are some of the…

Architects Insurance Why Architect Firms Need Business Insurance As an architect, you conceive and design buildings according to your clients’ visions. You also work with contractors to construct projects. Working with many different people in various roles can leave you…

Deductible types in a Professional Liability policy for architects/engineers- There are several deductible types on a Professional Liability policy in the market place. The most common deductible types are a straight deductible or a first dollar defense deductible, the deductible…

Definition of Professional Services in a professional liability policy- The definition of professional services in your professional liability policy is very important. If your firm provides services outside of the professional services defined in your policy it may not be…

Loss Runs What are loss runs on Professional Liability for architects/engineers? The loss runs are a claims history report on your firm’s Professional Liability policy. It provides details of claims or pre-claims that have been reported to an insurance company….

The Engineer’s Need for a Written Contract It is truly surprising to see how often professional engineers perform services for clients without the most important document of the entire endeavor: a written, signed contract for services. What many people do…

Mergers and Acquisitions of My Architecture/Engineering Firm Business is ever changing and your firm might come into a situation that you are in a merger or acquisitions. If this situation does come up for your firm call your insurance agent…

What can affect your architecture/engineering firms Professional Liability premium? There are several factors that go into determining a premium for your design firm. The information provide on the renewal application, your firm’s claims history, website information, brochure and resumes will…

Employment practices liability insurance (EPLI) has become increasingly important for employers since the recent recession. The types of lawsuits and claims related to employment issues that EPLIs cover – like workplace discrimination, wrongful termination, and lack of compliance with the…

Why did my premium change on the business owner policy? Why did my architecture/engineering firm’s premium change on the business owner policy? There may be several reasons for a premium change on the business owner policy, here some examples of…

Resuming Projects After Shutdown Reopening a construction project after a shutdown can be challenging. Whether planned or unplanned, a construction shutdown can have a significant impact on a project’s potential for loss. To help prepare your work site to reopen,…

New RVers – Safety Tips Summer travel and safety tips for new RVers | PropertyCasualty360 Independence Day travel is expected to approach pre-pandemic levels during the 2021 July Fourth weekend, according to AAA, with more than 47.7 million Americans planning…

What are claims expenses in an architects/engineers Professional Liability policy? Claims expenses are all of the costs that are associated with the defense of your firm’s claim. An example of the definition of claims expenses in a Professional Liability policy…

Employment Practices Liability Insurance  What is Employment Practices Liability Insurance?  Employment Practices Liability Insurance (EPLI) — a type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful…

Automobile liability for architects and engineers- This coverage can be confusing because there are several types of automobile insurance. Typically, in a contract, the specific automobile liability is coverage to protect your business in the case of liability due to…

Multi-year Professional Liability policies for architects/engineers – Some insurance companies, depending on your firm’s size, may offer a multi-year policy at renewal time.   The policy terms available with some insurance companies may be two or three years. There are a…

Cyber Insurance – What is it? When you run a small business, you face many physical risks, like property damage and injuries. But your business also faces risks that come from using technology. These include everything from data breaches to…

Exclusions on the business owner policy for architects/engineers- These are some of the exclusions that are included in the business owner policy. The exclusions may vary with each insurance company, carefully read your policy so your firm understands those exclusions….

Understanding Your Home’s Replacement Cost Determining home replacement cost can be confusing. Homeowners may mistakenly think home replacement cost is the same as a home’s market value. Instead, it’s the cost of rebuilding the home. Your replacement cost only covers…

Key Components on the Declarations Pages of a Professional Liability Policy for Architects/Engineers Even though the first few pages of the policy seem simple, they are imperative in the policy coverages. The policy number is typically at the top of…

Graduation Party Hosting Liability Spring is the time of year to host a party to celebrate the accomplishments of our children graduating school!  This is a very special and exciting time for your family.  Your to-do list is long; full of…

Facts About Professional Liability Policies for Architects/Engineers There are several policies in the market place and many different pieces of information to be aware of when it comes to Professional Liability policies. Your firm may have heard the term hammer…

Email Fraud or Social Engineering Fraud It’s perpetrated by imposters who intentionally mislead or manipulate unsuspecting individuals and businesses into diverting payments or sending them money.   An example: A criminal posing as a company manager or outside vendor  sends an email request…

Understanding Cancellations and Non-renewals for an Architects/Engineers Professional Liability Policy The insurance companies are regulated by each state and each state has a specific time period that the insurance company must provide a notice of cancellation or non-renewal. The insurance…

What Is Ocean Marine insurance? Ocean Marine encompasses a variety of insurance coverage’s designed to protect merchandise, goods, workers, passengers and crews aboard shipping vessels and cargo storage during marine transport domestically or abroad. Ocean marine insurance also covers other…

Additional Insured on a General Liability Policy The additional insured language in a general liability policy will vary with each insurance company. Here are a few examples of the blanket additional insured endorsements in general liability policies. Example one WHO…

Water Back Up Coverage Water damage resulting from backed up drains or failed pumps is one of the most common homeowners insurance claims. It’s also the third most costly claim behind fire and liability lawsuits. Many homeowners don’t know that…

Reporting of a Claim or Potential Claim on Your Architecture/Engineering Firms Professional Liability Policy Your firm is required to provide written notice of a claim or potential claim to your Professional Liability insurance company. Here are a few insurance companies’…

Construction Insurance From job site accidents to construction defects, the construction industry encompasses a wide range of perils. To learn more about Construction Insurance click HERE. You’ll find discussions and answers to these questions and more: What are the greatest risks…

Tips for Choosing an Architects/Engineers Professional Liability Policy There are many Professional Liability insurance companies in the marketplace, 60+ at last count. It can be difficult to choose and insurance company with so many companies available. A few suggestions are…

Cyber Liability for Design Professionals It really isn’t a matter of if you have a cyber incident it is when.  Cyber criminal activity is becoming more and more prevalent.  From criminals tricking you into paying false invoices, to liability arising from…

Certificate of Insurance Requirements in Contracts for Architects/Engineers There are often many requests in contracts with regards to insurance limits and requirements. Before signing the contract, review the insurance limits and requirements in comparison to what your current limits and…

  “Scope of Services” – Educational Video Series Architectural and engineering services means professional services of an architectural or engineering nature, or incidental services, that members of the architectural and engineering professions, and individuals in their employ, may logically or justifiably perform First in an ongoing series of educational videos put together by a/e…

Common Misconceptions with Insurance for Architects/Engineers Insurance can be extremely confusing with all of the different types of insurance and the coverage available. Here are a list of some of those misconceptions and clarifications. Clients can be listed as additional…

Gap insurance (also known as loan/lease payoff) is an optional auto insurance coverage that applies if your car is stolen or deemed a total loss. When your loan amount is more than your vehicle is worth, gap insurance coverage pays…

The Importance of a Return to Work Program Workers compensation claims cost employers in the United States billions of dollars each year. This price tag does not reflect the total (direct and indirect) costs involved in work-related injuries or illnesses….

Your Firms Assistance and Cooperation on a Claim Your firm has submitted a claim and the insurance company is now requesting your assistance. There are provisions in the policy that will lay out what assistance and cooperation your firm is…

Exhausted Limits of Liability on Your Architecture/Engineering Firms Professional Liability Policy This means that when you have a claim and the expenses and settlement have reached the policy limits then your firm is required to pay the balance of the…

Cyber security for Employees Working From Home Cyber Security | Program Development Due to work-life balance or other business considerations, more employees are working from home more than ever before. While remote work may offer benefits to both the employee…

Preparing for Renewal of Your Firm’s Professional Liability There are many pieces of information to gather when your firm completes your Professional Liability renewal application. If you keep this information up to date the renewal process becomes much easier. The…

Retroactive Dates in an Architects/Engineers Professional Liability Policy There are many factors to understanding a retroactive date on a Professional Liability policy. A retroactive date is defined as the date that your design firm has had a professional liability policy…

Adding A New Driver Safe driving habits are always in season — especially when there’s a new driver on the road. When it’s time to add a teen driver to your auto insurance policy, consider Citizens deductible options and review the protection…

Defense in A/E Professional Liability Policy When your firm receives a claim the first step in the claim process it to set your firm up with defense counsel. The insurance company will set this up for your firm, most insurance…

Keeping Workers Warm Extreme cold can cause a number of health problems for employees during the winter months. Hypothermia and frostbite are just two conditions that may affect workers if the proper precautions are not taken.   If workers must…

Professional Liability Limits of Liability for Architects/Engineers Our agency is often asked what is a good limit of liability for our Professional Liability policy. This can be a challenging to answer because it is hard to predict what types and…

          Mid-term Increase of Architect’s/Engineer’s Professional Liability Limits Many Architects and Engineers have been carrying Professional Liability Limits of $1,000,000 each claim with  a $2,000,000 annual aggregate for a number of years; but we are seeing…

Common Myths of Professional Liability Policies for Architects/Engineers A Professional Liability policy or errors and omissions policies have some nuances to be aware of. Here are some common issues with the policy and the answers to those issues: Even if…

CERTIFICATES OF INSURANCE: WHY YOU CAN’T ALWAYS HAVE IT YOUR WAY Design professionals are often asked by their clients to sign contracts that include comprehensive—sometimes unreasonable—insurance requirements and indemnification terms.  These are usually drafted with the goal of protecting owners,…

Umbrella policy for architects/engineers explained- An umbrella policy provides an extra layer of limits of liability over policies such as general liability, automobile liability and employer’s liability. It is not uncommon for an architect/engineering firm to have an umbrella policy….

Business Owner Policy for Architects/Engineers The business owner policy will be similar to other types of business owner policy in different industries with a few exceptions of coverage. The business owner has a few major portions of the policy. The…

What is a Surety Bond? Surety bonds are designed to guarantee performance in the face of a set of particular risks. Each surety bond must be uniquely tailored to meet specific needs. A surety bond is an agreement under which…

Certificates of Insurance for Architects/Engineers Many times the requests for certificates of insurance are not geared towards architects/engineers, they tend to look like a request for a contractor. Keep in mind that some of the requests for design firms are…

The Communicable Disease Exclusion You may have noticed a new exclusion form on your recent insurance policy renewal.  Several insurance carriers are implementing or strongly considering applying communicable disease exclusions on general liability policies in response to the pandemic crisis….

Higher Limits for your Professional Liability Policy Requests for higher limits for your architecture/engineering Professional Liability policy- It happens quite often that your firm will be asked to increase your Professional Liability limit of liability on your policy. Here are…

Fleet Safety for Design Professionals Fleet vehicle accidents are among the most costly of injury claims for business. The average cost of a loss related to vehicle accidents is approximately $70,000. This is almost twice the cost of the average…

Top Home Claims – And How To Prevent Them According to the Insurance Information Institute, approximately one in 15 homeowners make an insurance claim each year. One pattern that emerges is that, the six most common types of home claims are…

How does my architects/engineers Professional Liability work as I prepare to retire? This will depend on if you work at a firm, a principal of a firm or if you have your own firm. Additionally, it will depend on the…

Hired and non-owned auto insurance (HNOA) covers commercial liability expenses triggered by accidents involving hired (e.g. rental cars) or borrowed vehicles (e.g. employee-owned) for business use.   An HNOA policy typically covers liability claims and defense costs. It can cover…

Professional Liability Insurance What does your architecture/engineering firms Professional Liability insurance company provide? Your firm may ask why you are paying for this insurance and what does the insurance company have to offer. The short answer is the insurance company…

Policy Premium How is the Professional Liability policy premium determined for architects/engineers? The actual premium and how the premium is determined will vary with each insurance company based on the actuaries of the company. The insurance companies do take into…

Construction Sites During Covid-19 KEEPING AN EYE ON THE FUNDAMENTALS OF CONSTRUCTION SITE VISITS DURING COVID-19 COVID-19 as well as the volatile economic market has affected the design and construction industry as a whole and may have affected your professional…

  a/e ProNet is a network of independent insurance brokers specializing in the professional liability insurance and risk management needs of design professionals. Why should I use a specialist insurance broker? Founded in 1988, the original core goals of a/e…

Claims Reporting for Architects/Engineers When it comes to claims reporting the most important factor is to report it to your insurance company or agent as soon as possible and provide all of the information your firm has at the time…

Drive Other Car insurance can provide protection for the executive of a Partnership or Corporation or their spouse when driving a non-owned car, such as a vehicle that is rented or borrowed. Who needs drive other car insurance? Drive Other…

Certificate of insurance requests for architects/engineers- Your firm will receive certificate of insurance requests from your clients on projects. Here are some of the more common requests that are seen on certificates of insurance. Additional insured The most common request…

Return to Work Programs If you don’t already have an established return-to-work (RTW) program, the time to start one is now. According to the National Council on Compensation Insurance (NCCI), lost time accounts for more than 40% of the total…

INSURANCE CLAIMS OR INCIDENTS – Ensure the fastest possible response to your insurance claim or incident Reporting insurance claims or an incident (a situation that very well could turn into an insurance claim) as soon as reasonably possible is of…

Important details to remember about Professional Liability policies for architects/engineers- While Professional Liability policies are not lengthy they have quite a bit of information included. Below are a list of items to keep in mind when reading your Professional Liability…

Understanding Monopolistic States for Workers Compensation for Architects/Engineers There are four states in the United States that prohibit the sale of workers compensation by private insurers. This means these states have a state run workers compensation policy. The states that…

Fiduciary Liability vs. ERISA If you have and Employee Stock Option Plan (ESOP) or a 401K plan for your employees you probably also have an ERISA bond.  This type of fidelity bond is required and you are to carry 10%…

Professional Liability vs. General Liability for Architects and Engineers For design professionals each of these policies are important and provide different coverages for your firm. Coverage The Professional Liability policy is for design errors and omissions. In the event your…

  Post COVID-19 World for Design Professionals   The 2020 Pandemic of COVID-19 has caused industries around the country to either rapidly come to a halt or experiment with new ways of working. Estimates show that 1 Billion have been told to…

Environmental & Contractors Professional Practice Insurance Did you know that nearly every construction or commercial type of business has at least one environmental liability exposure?  Pollution liability occurrences may be infrequent, but when they do happen, they are often large,…

Online Video Conference Meeting Tips With this new era of video conferencing and online meetings, many have found that there are a new set of guidelines to follow – things that we might not have needed to discuss in person,…

Additional insured endorsements for architects/engineers on general liability policies- The request for additional insured on general liability is common for architects/engineers. There are several company in the marketplace and each of their additional insured endorsements look different. Insurance companies often,…

How Design Professionals Can Save Money on Professional Liability Insurance  There are many things that you can do to reduce the cost of your professional liability premium.  Some of these things will even help you avoid claims. Risk Management Classes…

Extended Reporting Period Options What are the different extended reporting period options available on Professional Liability for architects/engineers? The extended reporting period options (ERP) also known as tail coverage will vary with insurance companies. The premium is based on the…

Personal Umbrella Insurance An umbrella doesn’t just protect you from the rain. With an umbrella insurance policy, you can be protected from liability claims with affordable coverage that goes beyond the limits of your home or auto policy. An umbrella…

Scope of Services – ae ProNet Educational Video a/e ProNet is a network of independent insurance brokers specializing in serving the professional liability insurance and risk management needs of design professionals. Members are located throughout the United States and in London….

Coverages in your firm’s architects/engineers Professional Liability policy that you may not be aware are available – Depending on the insurance company, there may be some supplemental coverages in your firm’s Professional Liability policy. Here are some examples of those…

What information is needed to complete a Professional Liability application for architects/engineers? This will depend on the insurance company and what the application is requesting. However, most applications will request the following information. The largest piece of information the application…

Weather Event Preparedness When there is a prediction of a potential weather event, don’t wait until the last minute to get prepared. Start now so that you may keep yourself and your loved ones safe. It is important to make…

POLLUTION COVERAGE Does my architecture/engineering firm have pollution coverage on Professional Liability? Most Professional Liability insurance companies do offer some pollution coverage in the policy. It will vary from company to company so be sure you understand what the coverage…

The Importance of Definitions in Professional Liability Policies for Architects/Engineers When reading your Professional Liability policy you may think that the definitions are not all that important. They are indeed very important, the definitions are the highlighted words throughout the…

Signing and Sealing Instruments of Service Prepared by Another Design Professional In some instances, design professionals are asked to review and place their seal and signature on instruments of service prepared by others. There are no standard contracts for such…

Key factors to remember for Extended Reporting Periods (ERP) for Design Professionals First it is important to understand what an extended reporting period it. It is an extended period of time to report claims on your firm’s Professional Liability policy…

Time Is of the Essence Clause A Time Is of the Essence Clause (TOE) is language contained in a contract that specifies that a certain time or date is important. In effect, a time is of the essence clause is saying, “the times…

What claims information should be provided for an architect/engineers Professional Liability renewal? No matter the size of the claim the more information provided the better for the insurance companies to evaluate the claim in determining a renewal quote. The most…

Directors & Officers (D&O) Liability Insurance Directors & Officers (D&O) Liability insurance helps cover defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organization’s board of directors and/or officers. These types…

Can my architecture/engineering firm get a project policy for just one project? This question can get complicated because there are many different answers and it really depends on what is being asked.  Below is a list of responses it may…

Asbestos Risks During Design Phase Most professional service agreements assume that the site for a project is “clean” and that no risks from an environmental hazard such as asbestos will affect the project or the design professional’s delivery of services….

What is the first dollar deductible for architects/engineers on a Professional Liability policy? The first dollar deductible option may be available to specific firms that meet the insurance company requirements. It is good to understand what the first dollar deductible…

Insurance policies to consider for your architecture/engineering firm- There are many types of insurance policies you can obtain for your firm, listed here are common polices for design professionals. Professional Liability is the most common policy for architects/engineers.  This is…

Claims-made Professional Liability Policy for Architects/Engineers This is the most common type of policy for a Professional Liability policy.  The less common type of policy is an occurrence policy. What is a claims-made policy?  It provides coverage only for claims…

 Jewelry and Valuable Items Insurance Does Homeowners Insurance Cover Jewelry & Valuable Items? Homeowners insurance may provide limited coverage amounts for lost jewelry or valuable items based on the type of item and cause of loss. Valuable items coverage may…

  Summertime REMINDERS! As the weather gets hotter and the days stay light longer, it’s a fact that mishaps will happen more.  Be SAFE out there this summertime! Car accidents: More teenagers are killed in motor-vehicle accidents between Memorial Day and…

  PROJECT CERTIFICATION AND CLOSEOUT IN A VIRTUAL COVID WORLD AND AFTER The past few weeks have brought a jarring amount of change. Multiple architecture events have been postponed or canceled. The AIA has indefinitely postponed its annual conference, originally scheduled…

Completing the Professional Liability Application for Architects/Engineers It seems as though it could be a daunting task to complete the Professional Liability application, however from year to year much of the information may remain the same.  It is important, however,…

Exclusions on a Professional Liability Policy for Architects/Engineers While the exclusions will vary with each insurance company there are several that are quite common amongst most policies.  Here are some sample wordings of common exclusions on policies. Example one: Based…

Umbrella Liability insurance is a form of liability insurance that will supplement your basic liability policies, such as your auto, home, or renters insurance. An umbrella liability policy covers a much higher limit and goes above and beyond claims directly relating…

The importance of reading your architecture/engineering firms Professional Liability policy…. Your firms Professional Liability policy is probably one of the most important insurance policies your firm has that is directly related to the work that your firm does.  It is…

Can my architecture/engineering firm have a choice of counsel on Professional Liability? This is a great question and an matter that needs to be address prior to purchasing your firms Professional Liability policy. Many architecture and engineering firms have an…

Providing  Pro Bono Services  Whether or not professional services are provided for a fee or on a complimentary basis, the professional liability risks are the same. Professional liability insurance coverage is also the same, even though no premium is calculated…

What is a deductible credit on Professional Liability for architects and engineers? The deductible credit definition will vary with each insurance company and generally will be for early resolution of a claim or use of mediation.  Here are a few…

  Malpractice Statute of Limitations applies to Breach of Contract Claims asserting Negligent Supervision but Indemnification Obligations Extend Time for Filing Suit Statute of Limitations for causes of action for negligent supervision and breach of engineering contract are both deemed…

Choosing a Limit of Liability on Your Architecture/Engineering Firms Professional Liability Policy These are the times you wished you had a crystal ball to predict the future and what a claim might cost your firm.  Unfortunately we do not have…

Business Owners Policy – Who Is It Right For? A Business Owner’s Policy (BOP Insurance) can help safeguard your company from property damage, loss and lawsuits in the wake of unforeseen events.  A Business Owner’s Policy builds in many specialized…

Additional Insured Language in a General Liability Policy for Architects and Engineers Most general liability policies for architects and engineers are geared specifically towards the specific industry so the wording of additional insured may look slightly different than it would…

 Design Professional’s Common Contract Insurability Issues Below are a couple of the common insurability issues that are raised during the Contract Review process. Cost Estimates Clients rely heavily upon estimates provided by Design Professionals when budgeting for projects, but no…

General Liability vs Professional Liability Policy Why does my architecture/engineering firm need General Liability if we already carry a Professional Liability policy?  The reason is that these are two different types of policies, while most of a design professionals risk…

Diminishing Limits of Liability on Professional Liability for Architects/Engineers What does this mean, diminishing limits?  This is also referred to ask shrinking limits.  If your firm has a claim the amount of the indemnity and expenses reduces the limits of…

Architects & Engineers – Unauthorized Changes to Plans   By, Samuel J. Muir* I. What’s at stake? Some states recognize the potential problems of changes to design plans without the authorization of the design professional. In those states, there are…

Professional Liability Exclusions that Architects/Engineers Should Be Aware Of There are some exclusions in Professional Liability policies, and depending on the insurance company and your firm, some may have more exclusions than others.  Here are a few exclusions to pay…

Know Your Limitations  A Design Professional Guide to Limited Liability – By David A. Ericksen A limitation of liability provision in a contract is one in which a Design Professional and client agree to limits the liability of the Design Professional. …

Deductibles on Policies for Architects/Engineers The deductibles will vary based on the type of policy for your design firm.   It is important to know and understand your deductible on each policy in the event of a claim. Workers Compensation –…

    Hired Auto Liability Coverage Hired Auto coverage provides Liability insurance for vehicles you lease, hire, rent, or borrow to use in connection with your business. Hired auto liability coverage example You’ve taken on a special job that requires you to rent…

Umbrella Policy What is covered and not covered under an umbrella policy for architects/engineers?  An umbrella policy provides additional coverage or excess limits for your design firm. What is covered under the umbrella policy?  For an architecture/engineering firm the ‘underlying’…

Fiduciary Liability Coverage Why you and your organization need protection – If your company sponsors a retirement or health plan for its employees and you are involved in any way with the management of that plan, you are likely considered…

What does my architecture/engineering firm need to do in the event of a claim or circumstance?  First and foremost your firm needs to report the claim or circumstance immediately to your agent or insurance company. After the claim or circumstance…

Understanding Workers Compensation for Architects/Engineers Firms The workers compensation policy can be complicated but once you understand how it works it can become easier to comprehend. There are six standard parts of the workers compensation policy.  Part one pays for…

How to Get Paid Promptly… and Not Get Sued by Barry Temkin and Kate DiGeronimo Every design professional likes to get paid promptly. While it is not the only reason you are in business, getting paid certainly beats the alternatives….

What are some of the coverages that can be added on to an architects/engineers business owner policy?  There are many types of coverages that are automatically included in a business owner policy; however, there are additional coverages available for your…

Definition of a Claim in an Architects/Engineers Professional Liability Policy The definition of a claim is important because your firm will want to know when/if you should be reporting a claim.  Every insurance policy will be slightly different so be…

Directors & Officers Insurance – Why? Your organization’s assets and the personal assets of its directors and officers are at risk with every decision you make, every day. Directors and officers (D&O) liability insurance protects the personal assets of corporate…

What to Know About the Design Professionals Errors and Omissions (Professional Liability) Policy While the policy is not complicated to read, there are some areas to be aware of when you purchase your policy. First section that you will want…

Electronic Transfer of Documents By, Powell, Trachtman, Logan, Carrle & Lombardo, P.C.* I. What’s at stake? Clients, contractors and subconsultants frequently request that your work product be supplied in an electronic format. Such a request may require that you transfer…

Free Pre-Claims Assistance for Architects and Engineers Most Professional Liability insurance companies offer free pre-claims assistance for firms.  This is offered when a claim has not technically been filed but your firm feels that there may be an issue forthcoming….

Does Your Home Owners Insurance Cover Service Line Coverage? Protect your property – and what’s underneath it Chances are you have multiple “service lines” running underground on your property: pipes and wires that connect your home to your energy company,…

Does car insurance cover pets? It depends. While pet coverage is readily available by some car insurance companies, it’s not always a given — some insurers automatically include coverage for your pet if it happens to be injured in a…

Endorsements Available on the Business Owner Policy for Architects and Engineers There are several endorsements available on the business owner policy and this will vary with each insurance company.  Here are some of the examples of the endorsements that may…

  UNDERSTANDING CONTRACTUAL INDEMNIFICATION AND ADDITIONAL INSURED OBLIGATIONS   For design professionals, the thrill of securing an exciting new project often gives way to a stark reality: your sophisticated new client has retained experienced construction lawyers to negotiate a contract that…

Insurance – Good to know! For architects and engineers there is always something to learn about insurance.  Whether it is benefits to the policy or ways to get additional discounts, there is always something to learn. Did you know most…

Early Mediation – A Low-Risk High-Reward Proposition Early mediation is a mechanism that can provide a path to resolution. This forum allows the parties to present their issues to a knowledgeable intermediary who will work with all sides to facilitate…

Understanding Depleting Limits of Liability in a Professional Liability Policy for Architects and Engineers Limits of liability in your firm’s policy will be defined in the declarations page of your firm’s policy and is determined at renewal time or when…

Workers’ Compensation Insurance Workers’ compensation insurance (also known as workman’s comp insurance) provides benefits to employees for work-related injuries or illnesses including medical care, wages from lost work time, and more. Workers’ compensation insurance covers a deceased worker’s family with…

AUTO NO-FAULT REFORM QUICK FACTS The following information is provided on behalf of the Michigan Department of Insurance and Financial Services. When Does the New Law Take Effect? The law currently requires you to carry unlimited medical coverage to pay…

Can my firm increase limits of liability on my Professional Liability policy? The insurance company will need to look at all of the factors before determining if the limits of liability can be increased.   Here are some options and the…

Social Media and Design Firms Social media sites such as Facebook, Twitter and YouTube are just a few examples of the technology available to design firms and other businesses to promote their business and the services they offer. For relatively…

Deductibles in Professional Liability Policies for Architects and Engineers There are many deductible options and it will vary based on the insurance company and the size of your firm.  Here are further details about deductibles and what may be available…

CONTRACTUAL DEFENSE PROTECTION – A NEW SOLUTION FOR THE OLD “DUTY TO DEFEND” PROBLEM   Per the AIA: A contractual duty to defend is an obligation whereby one party, in this instance, design professionals, agree to defend another party, generally…

Supplementary payments included in architects/engineers Professional Liability policy.  Most Professional Liability policies have supplementary payments that are not subject to a deductible and are in addition to the limits of liability.  Here are some examples of the supplementary payments: All…

Cybersecurity Insurance is the best present! Heather Turner, digital managing editor of NU Property Casualty 360, provides us with 10 digital tips for a secure holiday shopping season. “The advent of the digital age transformed the way we shop — especially for…

Third-Party Vendor Problems Third-Party data breaches are becoming the normal. Partnering with a third party often requires sharing confidential and sensitive information. Too often, cyber security is ignored when companies are looking to secure business relationships. It is important to…

Do’s and Don’ts of Professional Liability Claims for Architects and Engineers There are several things to be aware of when reporting a claim or once your firm is going through the claims process.  Here is a list of some of…

What does my firm’s insurance policy cover? There are many insurance policies in the marketplace and many that are specific to architects and engineers.  Below is a brief description of what each policy covers. Professional Liability – This is the…

 Understanding Builders Risk Insurance  Builders risk insurance is essential protection for construction projects, but it is complex and often misunderstood. This isn’t surprising. There are no standardized policy forms for builders risk and coverage varies from insurer to insurer and…

Some Contractors Want to Bring More Design Services In-House Engineering News-Record (ENR) reports that a growing percentage of contractors plan to increase the use of in house design to better meet the demands of project owners. The article cites The…

What is the definition of professional services in Professional Liability policies? This is going vary from carrier to carrier and even policy to policy; most importantly read your policy so your firm knows what the professional services covered are.  Here…

Indemnity Clauses in Contracts According to Brian K. Stewart, Esq. : Indemnity legal wording for a way to shift the risk for a particular problem that might arise on a construction project. The variety that we are concerned with for purposes…

What insurance does my architecture/engineering firm need? There are some insurance policies that will be required by either contract or law and some that your firm needs to consider based on your business affairs. Professional Liability – this is probably…

  On the brink of another insurance crisis for drinking water not containing lead? A September article from the Insurance Journal explains this next public health issues and discusses the General Liability insurance and Environmental Liability Insurance: ‘Drinking water: a commodity…

Submitting a Claim for Your Architect/Engineering Firm Depending on the policy there are different pieces of information to gather and submit for a claim. Professional Liability – You firm may have received a notice of a claim or a verbal…

While costly and dangerous, data breaches aren’t the biggest threat to businesses from hackers on the radar for this year. The first half of this year alone has seen an uptick in the frequency and severity of attacks that have…

Increased Premium on my A/E Firm’s Business Owner Policy Why has the premium on my architect/engineer firm’s business owner policy increased?  There are many factors that are considered when the insurance companies are rating your policies, but here are some…

FAQ on Extended Reporting Period on Professional Liability.  Many questions come up when it comes time to start thinking about an extended reporting period (ERP) or tail policy.  Here are some of the questions and answers on the ERP. What…

 What is Employment Practices Liability (EPLI)? EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated. The number of lawsuits filed by employees against their employers has been rising. While most…

Business Income Insurance How will your business provide for loss of income during a disaster? Is your business prepared in the event of a disaster?  No matter what the disaster may be ……Fire, Tornado, Earthquake, Power Outage, Theft, Wind and…

  Do Hackers Pose a Threat to Design Firms? When most people picture a target for hackers, a design firm is usually not at the top of the list. Most often people picture a bank or law firm or doctors…

Waiver of Subrogation on Architects and Engineers Policies The request for waiver of subrogation on policies for architects and engineers occurs quite frequently.  The waiver of subrogation is different for each type of policy and many times it will need…

Is your Property Insurance prepared for disasters? Are you? September is National Preparedness Month, is your insurance prepared? Property Casualty360 contributor, Heather Turner, advised: “Recent events have been a sobering reminder at just how destructive hurricanes and storms can be….

How does my firm know if we have a Professional Liability claim?  There are quite often issues on projects, it is important for your firm to know when it is a claim. A claim, as defined by an insurance company…

Mitigating Indoor Weather Risks Throughout the year, severe weather nationwide creates hazards that can prove costly for retailers and other businesses. Slip and fall claims accounted for almost 30,000 injuries in 2016. These affect both customers and employees. Slip and…

Umbrella/Excess Policies for Architects/Engineers While umbrella/excess policies are not common they are available to architects and engineers.  A few items to be aware of when your firm does get an umbrella policy. What is an umbrella policy?  – The umbrella…

Definition of Professional Services in an Architects/Engineers Professional Liability Policy Each insurance company has a different definition of a Professional Services, be sure to read your insurance policy so that you know what it means for your firm.  Here are…

Cyber Attacks – Are We Becoming Immune? Cyber attacks seem to be happening more often these days.  These data breaches occur almost daily exposing email addresses, passwords, credit card numbers, and other highly sensitive information.  Unfortunately, most of us don’t…

 Pre-Claims Assistance for Professional Liability The first indication that a claim may be made against your firm may come long before a demand for money is made.  It may be that your client is dissatisfied with your services and refuses…

Definition of a Claim in an Architects/Engineers Professional Liability Policy Each insurance company has a different definition of a claim, be sure to read your insurance policy so that you know what it means for your firm.  Here are a…

Your A/E Professional Liability Premium Increase? Reasons your architecture/engineering firms Professional Liability premium may have increased- There are several factors that go into determining what your firms Professional Liability renewal payment is for the renewal term.  There are also several…

A/E Firm’s Workers Compensation Policy   What should my architecture/engineering firm consider when looking at a Workers Compensation policy? The Workers Compensation policy is fairly straightforward as far as options, but there are a few items to think about. The…

Climate Change – Risk to Michigan Properties In the last 30 years, Michigan’s average temperature has increased by less than 2 degrees. However, that’s enough to cause changes that affect Michigan policy holders in negative ways. The GLISA confirms that…

Limits to Carry on a Business Owner Policy What limits should my architecture/engineering firm carry on our business owner policy?  This is a very good question and one that does present itself from time to time.  There are several parts…

CYBER SECURITY CYBER ATTACKS – are you next? CYBER ATTACKS seem to be happening more and more frequently these days.  One reason is because we as individuals and businesses are becoming forever reliable on technology.  We love the speed and convenience…

Construction Management- Advisor All professional services, including those of construction managers in the role of advisors (CMa), involve risk that may result in a claim of professional negligence. According to claims data from Travelers Design Professional Liabilty program, the average…

Should my architecture/engineering firm send a certificate of insurance to my clients or no? This is a business decision that your firm will need to make with regards to issuing certificates of insurance.  There are a few schools of thought…

Indemnification Clause A properly worded indemnification clause is critical to reducing risk in a construction contract. An indemnification clause may include any, or all, of three distinct obligations, including to (1) indemnify, (2) defend, and (3) hold harmless the client. …

FAQ on Business Owner Policies for Architects & Engineers These are some of the common questions we receive with regards to Business Owner policies for design professionals. Why does the insurance company need information about the building in order to…

CYBER INSURANCE MARKET UPDATE 2019  By Aubrey Gene | July 09, 2019 at 12:00 PM – Presented by National Underwriter PropertyCasualty360 Historically, buyers of cyber coverage have been large organizations in industries like health care, finance and retail. Makes sense, right? They store…

FAQ on Workers Compensation for Architects & Engineers These are some of the common questions we receive with regards to Workers Compensation for design professionals. Why my firm is receiving audit paperwork to complete? – The workers compensation is an…

CYBER COVERAGE It takes only one cyber event or data security breach to impair your company’s financial results, or even potentially put you out of business. One resourceful hacker, virus, or system glitch can shut down your entire network within…

FAQ on Professional Liability for Architects & Engineers   These are some of the common questions we receive with regards to Professional Liability for design professionals. -What is a claims-made policy? – Claims-made policies are most commonly Professional Liability policies.  The…

DEDUCTIBLE When does my firm have to pay a deductible on a Professional Liability claim? This will all depend on what type of deductible your design firm has a how much the deductible is.  The deductible amount and type are…

Project Exclusions on Professional Liability for Architects/Engineers The question often comes up as to specific project exclusions or inclusions in a Professional Liability policy.  The answer is it depends on your policy.  Read your policy to understand what projects are…

Pollution Insurance – Should small companies and non-manufacturers worry about it? Property Casualty360, a national underwriter company, published an article by Joyce Anne Grabel, which will make you think about carrying pollution incident insurance. She states: “The CEO and board of…

Professional Liability Coverage for When Your Firm has a Name Change Design firms go through changes through the years, whether it is a change to the corporate structure, name changes or partnership changes.  You will need to know how your…

Renters insurance coverage protects you and your personal belongings if the worst happens. While you may only be renting your apartment or house, chances are you own most of the stuff in it. And while your landlord’s insurance policy on…

Vehicles for College Grads 10 safest, most affordable vehicles to insure for college grads The official start of summer is still a few weeks away, but it’s already started for many college students who have finally graduated. Over the years, parents have…

CERTIFICATE OF INSURANCE WARS We are now entering a phase of business where owners are relying on third party associates to handle their certificates of insurance in an attempt to limit their own risk and alleviate the pain of requesting…

Project Policy For Our Architecture/Engineering Firm Can our architecture/engineering firm get a project policy?  Project policies are available with a few of the insurance companies.  The Professional Liability project policy, that being referred to, will cover the whole design team…

E-Scooter Sharing Programs – Insurance Risks Burns & Wilcox, national insurance broker, published this article regarding expanding use of e-scooters (electric scooters) . They talk about the inherent risk to the e-scooter sharing companies but no mention of the ‘driver’ being…

Can my firm increase the limits of liability on our Professional Liability policy? If your firm has a contract requirement for a higher limit or if your firm has increased the amount and types of projects, then you may want…

MCCA – Michigan Catastrophic Claims Association Michigan has the best medical coverage in the United States when it comes to automobile accidents. Every insured driver in Michigan pays the Michigan catastrophic claims association fee, commonly referred to as the MCCA fee. Many…

Policy Premium Increased? Why has my Professional Liability policy premium increased?  Architects and engineers often have this question, because who wants to pay more in premium.  However, there could be several different reasons for an increase. The Professional Liability insurance…

Vicarious Liability for Subconsultants If a firm has professional liability insurance from CNA, its policy defends the firm against allegations of its negligence and pays on its behalf if the firm or its employees are found to have performed professional…

 Space heaters in the workplace?  Check your insurance! Travelers Insurance provides helpful information in their safety article with respect to space heaters. If you are renting a building or a suite your Business Liability insurance provides you coverage for ‘Damage to…

Additional Premium Due for Your Workers Compensation Policy? Why is my architect/engineering firm getting an additional premium invoice due for the workers compensation policy?  There may be several reasons for getting an additional premium due but if it is at…

Contract Commandments for Design Professionals The Ten Commandments of Design Professionals’ Contracts (Vol,2) by Matthew C. Ryan. Navigators provided this great article in their March 2019 issue of BluePrint for Design Professionals. First off, “Don’t Make It Personal:  If you’ve…

Hired and Non-owned Automobile Liability for Architects/Engineers Also referred to as HNOA, this coverage can be found in your business owner policy or package policy.  Hired auto means any auto you lease, hire, borrow or rent.  Non-owned auto refers to…

Motorcycle Safety When spring is in the air, motorcycles are everywhere. Do you long for the freedom that comes with riding on the open road? Then it’s critical to respect your machine and improve your skills throughout your lifetime. But…

Named Insured vs. Additional Insured on an Architects/Engineers General Liability Policy What is the difference between being a named insured and an additional insured?  There are several differences when it comes to the General Liability policy. First named insured has…

Space Heater Fires – Are You Covered? Travelers Insurance provides helpful information in their safety article, if you have space heaters in your office. If you are renting a building or a suite your Business Liability insurance provides coverage for ‘Damages…

Read Your Professional Liability Policy With so much going on in our daily work lives it seems challenging to have the time to set aside to read your policy.  However, it is extremely important to understand the policy so that…

Reporting Claims for Architecture and Engineering Firms What is the process of reporting a claim for your firm? First and foremost, when reporting a claim, is to report it as soon as possible, this goes for any type of claim…

What Is A Certificate of Insurance? What it Isn’t. A Certificate of Insurance is a representation of coverage under an insurance policy or policies, as it exits at the time the Certificate of Insurance (COI)  was issued.  A COI is…

What is the purpose of a certificate of insurance for my architecture/engineering firm? A certificate of insurance is for informational purposes, similar to your auto ID cards.  It is helpful information for your firm’s clients.  It provides information for about…

Why Valuable Item Insurance Is Important Homeowner insurance protects more than just your house. Valuable item insurance included in your policy can be used to insure your valuables such as jewelry, art, prized collections or antiques that can mean just…

Keeping Workers Compensation Claims Down Extreme winter weather and temperatures have been impacting most of the United States.  In these conditions, fostering safe working conditions can be a challenge. To keep work comp claims down, follow these tips from OSHA…

Important Clauses to Pay Close Attention To in the Architects and Engineers Professional Liability Policy Yes it can be a lengthy policy to review but when renewing your policy or comparing policies here are a few key areas to review…

  Blockchain and the Design Professional   What is Blockchain? The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Per Victor O. Schinnerer: The design…

Key Points on the Architects/Engineers Professional Liability Application The Professional Liability application can be tedious at times but it is how an insurance company determines your premium on Professional Liability.  So the more accurate and detailed the information provided the…

When you think of what your home is worth, you tend to think of either what you paid for it, or the price you can sell it for on the open market. This may be affected by factors beyond the…

Business Owner Policy Coverages to be Aware Of When you receive your business owner policy it can be overwhelming to review about one hundred pages of coverage.   There are a few sections in the policy to be aware of and…

How Does A Claim Affect My Professional Liability Policy? You’ve had a claim and it has now closed and you are wondering how this will affect your professional liability premium.  At  your next renewal your agent will probably ask to…

 2019 Schedule Announced – ACEC Engineering Scholarship – And, 2018’s Winning Essay a/e ProNet is proud to sponsor the American Council of Engineering Companies (ACEC) Scholarship.  Each year this $5,000 scholarship is awarded to well-rounded engineering students.  The application deadline…

Is my design firm required to get the extended reporting period or ‘tail’ for Professional Liability? It is important to understand what an extended reporting period (ERP), also called a ‘tail’ policy is.  The ERP is an extended period of…

Manage Injured Worker Claims Through Additional Insured Status A very informative risk management article from Victor O. Schinnerer relates to having the contractor name the design professional as an Additional Insured under their General Liability coverage. They write “Construction operations…

Named Insured on Policies for Architects/Engineers What is a named insured?  This is an owner or entity that can make changes to the policy and is listed on the declarations page of a policy.  Named insured is different from an…

Understanding the Deductible on Professional Liability for Architects/Engineers It is important to understand what a deductible is on Professional Liability.  The deductible is your firm’s obligation to pay per claim in the policy year as described in your firms Professional…

Why is my design firm required to provide an application to obtain new or renewal quotes for Professional Liability? Professional Liability is a different type of policy from other policies in the marketplace and needs to be re-rated every year…

    Benefits of a Limitation of Liability Clause A limitation of liability clause (sometimes referred to simply as a liability clause) is the section in a contracted agreement that specifies the damages that one party will be obligated to…

The Parts of the Business Owner Policy for Architects/Engineers There are several sections of a Business Owner policy, all of which your firm should be familiar with. Declarations pages – this is the first few pages of the policy that…

Insurance, Active Shooters & Workplace Violence We know that no one really wants to read any more about active shooters especially how it may affect their insurance. However, Insurance and risk management issues become important considerations according to Patricia L. Harman,…

Why are some project types higher risks than others for design professionals? There are project types that are considered a better risk than other types of projects, here are some of the reasons why. Condo projects, as we know, are…

How to Prevent Your Pipes From Freezing Subzero temperatures can cause even interior pipes to freeze. When temperatures plummet, the risk of your pipes freezing and bursting skyrockets. In fact, burst pipes are one of the most common causes of property…

Definition of a Claim and When to Report it to Your Design Firms Professional Liability Insurance Company Claims, generally speaking, are a demand for money or service.  A demand doesn’t have to be a formal written demand; it can be…

What is Employee Benefits Liability? Why Do I Need It? Employee Benefits Liability Coverage provides errors and omissions coverage for the administration of employee benefits programs of an insured. This coverage is usually endorsed to the General Liability Policy or…

Can my architecture/engineering firm get an estimated premium on Professional Liability based on a new project? This question comes up quite often to determine if a. it is worth it to precede with the project a b. how my firm…

As an architect/engineer how does my firm choose a Professional Liability policy?  This is a very good question and the answer isn’t always premium.   What your firm should think about is what is important to your firm. Risk management services…

Cyber Insurance Myths Putting your Business at Risk! Lack of education, emerging risks, and inconsistent policy language sow confusion in the cyber market. Two CNA experts debunk common but dangerous myths and offer facts in their article for Risk &…

Home Renovations If you’re planning a home renovation, you may want to call your insurance agent first because this decision can impact your homeowners insurance. Some home renovations will change the amount of coverage you need, while others could even…

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…

Surplus Lines Professional Liability Policies for Architects/Engineers It is important to first understand what a surplus lines (non-admitted) policy is.  Surplus lines is a policy that does not need not be filed with state insurance departments as a condition of…

What Does Cyber Liability Cover? The complexity of information systems in today’s marketplace can be just as daunting as the risks to the data handled by these systems. However, common causes of loss are being identified, making it easier to…

The Parts of a Professional Liability Policy for Architects/Engineers There are several sections of a Professional Liability policy, all of which your firm should be familiar with. Declarations pages – this is typically the first few pages of the policy…

Professional Liability Premiums The economy is experiencing growth at a consistent rate for the first time in a long time. With the uptick in business comes with it higher expenses for most companies, including professional liability premiums. It would make…

What does my design firm do in the event of a Professional Liability claim? There are several steps in the claims process for Professional Liability. The first step is report the claim to your Professional Liability insurance company or your…

Significance of a certificate of insurance for a certificate holder As an architect/engineer your clients may ask for proof of your insurance policies, such as Professional Liability, General Liability and Workers Compensation. The certificate of insurance provides information about the…

Things to Consider Before Using Your Personal Vehicle for Work Many of us work for a company or are small business owners that require we go above and beyond the normal show up, work, and go home routine. You may…

My Predecessor Firm – Does my Professional Liability policy cover it? There are a few factors to verify with your insurance company with regards to your predecessor firm. The first and probably the most important factor to determining if your previous…

CYBER INSURANCE GROWTH While cyber insurance offerings have expanded recently, the ability to keep up with demand for cyber insurance cover is a continuing challenge, and sustainable growth in the cyber insurance market should not be taken for granted, according…

Saved By the Contract   The Facts Acme Engineers was hired by Perfect Paperz to provide a feasibility study and engineering report for the company’s wastewater treatment plant at its nearby paper recycling mill. After the study, but prior to…

Changes that can be made to Business Owner policies for architects/engineers- There are many portions of the business owner policy and therefore many changes that can be made.  Some of those changes or endorsements will depend on the insurance company…

Can my firm make changes to the architects/engineers Professional Liability policy? There are portions of the policy that cannot be changed such as the mandated state portions and the sections of the policy that must be filed by each insurance…

Employment Practices Liability Insurance High Risk of Testing Applicants According to Travelers Insurance RiskManagement Plus+ Online article it appears another employee practice that should be instituted is careful testing of your applicants to avoid insurance claims. The EEOC sued Ashley…

What changes can be made on and architects/engineers Workers Compensation policy? While the conditions and exclusions cannot be changed on the policy there are many other changes that can be made. The employer’s liability insurance limits can be changed.  For…

Home Safety While on Vacation Don’t let the anticipation of a well-deserved vacation blind you to the risks of leaving your home unprotected. Go ahead and plan your holiday, but take precautions before you leave. Consider Hiring a House-or Pet-Sitter…

General Liability Policy for Architects or Engineers – Additional Insured Your firm’s client is not automatically included as an additional insured under your general liability policy.  There must be a request by the first named insured to have an additional…

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…

Directors and Officers Insurance Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual…

Professional Liability vs. General Liability for Architects and Engineers What does each policy cover?  How are the similar?  How are they different? Professional Liability is for design errors or omissions.  It relates to ‘your work’ and the potential claims that…

Including Sub Consultants on My Design Firms Professional Liability Renewal Application The question of sub consultants on Professional Liability comes up quite often.  Why do they need to be included on the renewal application? Your firm has vicarious liability for…

  Not carrying insurance on your vacant commercial building? It could cost you more than just losing the rents. According to Burns & Wilcox, a leading insurance broker, ‘each year, vacant commercial buildings experience more than $500 million in fire…

Replacement Cost vs Market Value When you think of what your home is worth, you tend to think of either what you paid for it, or the price you can sell it for on the open market. But insurance carriers…

Why is my Professional Liability premium different from another design firm that does similar work? This question comes up quite a bit because your design firm may be doing similar work and projects as another design firm.  It is not…

Summertime Dangers It’s all fun and games until someone gets hurt, right?  As the weather gets warm and the days stay light longer, it’s a fact that mishaps will happen more.  Be SAFE out there this summertime! Car accidents: More teenagers…

Common Exclusions on Professional Liability Policies for Architects and Engineers Most Professional Liability insurance companies have much similar exclusions on their policies.  It is important you read your firms policy to be aware of what the exclusions are for your…

          Risks for Design Professionals 1.  Contract Language – Poorly written contracts and ambiguous language can expose firms to unintended Risk.  It is a good idea to send your contract in question to your agent to…

How to Complete the Architects and Engineers Professional Liability Renewal Application The renewal application is an important piece of information for the insurance companies to determine your renewal premium.  It is important to complete the application accurately and completely. The…

Lower premium – Tips and ‘How To’ The bottom line for your firm is very important.  Here are some ideas of how to help lower your Professional Liability premium. Deductible – Increase the deductible amount if possible.  By increasing your…

Allison Esrig, head of the architects and engineers Professional Liability group, and Roseanne DeBellis, senior claims counsel, work for different departments at Navigators, but the brokers and companies they serve would never think of them as operating in two different…

Do you, as the Insured, have a right not to file a claim, by a third party, on your insurance policy? Actually, no, unless you want to forfeit your insurance coverage. Guess whose pocket the costs will come out of…

Making changes to your design firms policies? While policy changes may seem like a simple task, it is important to get changes requested as soon as possible and accurately; it can make a difference down the line.  Here are a…

Fleet Safety Are your drivers prepared for an accident with a company truck? Having a plan in place can help keep drivers safe and prepared to capture important information at the accident scene. An accident response plan can also help your company…

A Claim and My Renewal Premium How will the claim affect my Professional Liability renewal premium?  This is a great question and will depend on a lot of factors involved including the outcome of the claim and your firm’s renewal…

RECREATIONAL VEHICLE INSURANCE Mother nature has finally caught up with the calendar here in Michigan.  Now is the time to start thinking about rolling out all those fun ‘toys’ we store away all winter long, just waiting for spring to…

Budgeting for insurance as a design professional can be tricky but doable.  It is important to look at your firm and determine what the needs are with regards to insurance and budget accordingly. The first step is to determine what…

Presentation for Architecture Students at University of Colorado Denver Our very own Cindy King was honored to be invited to present insurance topics for Architects at the University of Colorado Denver this week.  The topics included in the presentation were…

Spring Webinar Spring is upon us (at least calendar-wise) and Great American Insurance Group would like to invite you to their spring webinar. On April 25th 1PM (Eastern) Great American Insurance Group is hosting Kent Holland of ConstructionRisk LLC to…

Online Cyber Risk Index Chubb Insurance Group has used their 20 years of commercial insurance cyber claims data to create an online cyber risk index which shows the threat for cyber losses for companies based on their size and the…

Vacation Safety Tips! Vacations are a time to relax and have fun, but travel can quickly unravel due to unforeseen disruptions; including travel delays, medical emergencies, and crisis situations. There are ways to prepare and prevent any interruption while on…

Definitions in a Professional Liability Policy for Architects and Engineers All Professional Liability policies have a definitions section of the policy.  These are the words that are included in the policies that are either in bold or italicized throughout the…

9 Key Elements of a Data Security Policy While the conversation around the water cooler may be about the latest cyber breach, protecting your data against cyber attacks requires much more than words. Walk the talk to help protect your…

Comparing A/E Professional Liability Policies What to look for when comparing Professional Liability policies for Architects and Engineers – There are many factors when considering a Professional Liability policy and price isn’t always the number one factor. Here is a…

Engineering on the Margin: Practical Considerations for Avoiding Litigation Architects and engineers have enough to worry about while designing their projects that the thought of a claim is sometimes the last thing on their minds. Further to that, the thought…

Employment Practices Liability Insurance for Design Professionals- Also commonly referred to as EPLI, this is a policy that most Design Professionals don’t think about but may have a need for the coverage. What does EPLI do? – It is coverage…

 Design Professionals earn your continuing education credits, HSW, AIA approved for 4 learning units. Hear from Jim Case of Kerr Russell and Weber law firm regarding the 2017 changes to the AIA and EJCDC contracts, real life war stories and Sarah Chambers…

Claim Denied – Why? Reasons a Claim Can Be Denied on a Professional Liability Policy for Architects and Engineers While this is not something that happens very often it can happen and its best to understand the reasons why a…

Home & Auto Claims – what to expect Sadly, most people will have an incident in their lives that will require a Home or Auto claim to be filed on their insurance policy. Knowing what to expect can offer piece…

What is the process of obtaining a new professional liability policy for design professionals? Professional liability works slightly different than many of the insurance policies in the marketplace.  There are more details that go into rating a professional liability policy…

Need Continuing Education Credits? THIS FREE 4 HOUR PROGRAM IS REGISTERED WITH AIA/CES FOR 4 LEARNING UNIT HOURS AND QUALIFIES FOR HEALTH, SAFETY, AND WELFARE You and the members of your firm are cordially invited to attend the 28th annual…

Understanding the Workers Compensation Audit for Design Professionals When your firm obtains a workers compensation policy it is based on estimated salaries and job descriptions at that time.  The policy, when it starts and at future renewals, is an estimate…

Report Workers Compensation Claims ASAP Reporting workers compensation claims in a timely manner is important.  While late reporting of workers compensation claims by the employer does not affect the employee’s benefits, it often causes issues with claims handling process and…

Explaining ‘Limit of Liability’ on Professional Liability Policy for Architects and Engineers There are some portions about the limits of liability in Professional Liability policies that your firm should be aware of. Aggregate limit – What does an aggregate limit…

  Insurance for Cryptocurrency Cryptocurrencies, including Bitcoin, Ethereum, Ripple, etc.,  may be the waive of the future as more and more companies are beginning to accept the products as legitimate currency. Along with this wide acceptance comes the potential for risk…

Agree to Comply? Did you know that your insurance could be compromised if you agreed to comply with all laws, rules, and regulations? As with most design professionals liability insurance there is an exclusion for claims based on or arising out…

The Dos and Don’ts of a Workers Compensation Policy for Architects and Engineers Workers Compensation provides medical benefits when an employee is injured on the job.  Here are a few reminders to keep in mind about the policy below: Do…

What is EPLI and Why You Need It More companies are purchasing EPLI now than in the last 10 years because employees are becoming more aware of their rights. But, what exactly is EPLI? EPLI stands for Employment Practices Liability…

The Dos and Don’ts of a Business Owner Policy for Architects and Engineers Business Owner policies are an important piece of your overall risk management and protection of your firm’s assets.  Here are a few things to remember with regards…

Super Bowl Short-Term Home Rental Insurance PHILADELPHIA EAGLES vs. NEW ENGLAND PATRIOTS is really all that one really cares about when you make the decision to take a trip to Minnesota for the Big Game on February 4th.  However, those…

What information does the certificate of insurance provide? Generally speaking the certificate of insurance provides the clients of architects and engineers’ proof of insurance for specific insurance policies. The first few items the certificate included are the contact information for…

Managing Risk of Site Safety and Contracts with Municipalities In only limited circumstances can employees sue their employers in court in an attempt to recover for injuries incurred on a job site. Instead, employees injured on the job must make…

The Dos and Don’ts of a Professional Liability Policy for Architects and Engineers There are many things to understand when you have or are going to obtain a Professional Liability policy.  Here are a few tips of the do’s and…

  Request For Proposal (RFP) One of the challenges that our clients face almost every day is responding to a Request For Proposal (RFP). Because this is an important part of our clients responsibilities, we are always happy to assist…

“Contractors Insurance Requirements – A Primer” Commercial insurance for a general contractor is different than the insurance that a subcontractor needs to carry. Really?? Many owners, generals, construction managers don’t realize the importance of requiring insurance ‘apples to apples’. In this AmWins…

Waiver of Subrogation What is waiver of subrogation on insurance policies for Architects and Engineers?  Waiver of subrogation is a contractual provision where your firm agrees to limit the rights of its own insurance carrier.  The insurance carrier would not…

Mediation Deductible Credit in a Professional Liability Policy for Architects and Engineers Many carriers will give a credit to your deductible if your firm agrees to mediation during the claims process.  Below are examples of the mediation credit in policies:…

Review of supplementary payments in a Professional Liability policy for Architects and Engineers The supplementary payments will vary for each insurance company, be sure you review your policy so that you are aware of the supplementary payments in your firm’s…

Professional Liability for Architects and Engineers – defining Professional Services Each insurance company has a different definition of what is considered a Professional Service under the policy.  It is essential that your firm is aware of what services your firm…

Extended Reporting Period Options with Professional Liability Insurance Companies for Architects and Engineers An Extended Reporting Period, also called tail policy or ERP, is an extended period of time after the end of the policy period for reporting claims to…

Consent to settle clauses (hammer clause) in Professional Liability policies for architects and engineers- What is consent to settle clause?  It is the clause in the Professional Liability policy that will state if/when/how a claim will be settled.  Will the…

Contractors Professional Liability Insurance Trends   Contractors Professional Liability insurance policies are increasing in number. Due to the increase in the proposed spending plan for our infrastructure the insurance coverage provided under this Professional Liability policy is becoming more attractive…

Does my in-home hobby need to be insured? Check your social media and you’ll find a number of your friends and family may be soliciting some sort of product for sale.  Anything from candles and oils, childcare, crafting, photography, clothing,…

Common Endorsements Requested by Architects and Engineers When referring to the endorsements in this list it will be on the Professional Liability, Business Owner, and Workers Compensation Policies.  The requests are sometimes by the design firm but more commonly clients…

Why is it important that I read my firms architect/engineers Professional Liability policy? There are many reasons it is good to read over your Professional Liability policy, mostly so that you know what your firm’s coverage is on the policy….

  Insured Status Under the Contractor’s CGL Policy The issue of requiring protection for design firms by having them named as additional insureds on the general liability policies of contractors is complicated. Without the professional advice of an insurance consultant…

When should my design firm report a claim on a Professional Liability policy?  This can be a tricky question because not all answers are straight forward as to when to report a claim. The most obvious answer is when you…

  “Complying with all Laws”; Contract Language for Architects and Engineers One of the most difficult aspects of any design project for design professionals has nothing to do with the design itself, it has to do with the contract. Most…

Who is an insured under a Professional Liability policy for Architects & Engineers? This will be defined differently with each specific insurance company.  Be sure you read the policy and understand the definition and how it relates to your firm. …

Marketplace – Strong Lineup of Insurance Companies in 2018 The Michigan Department of Insurance announced that consumers will continue to have a robust choice of insurance companies offering health insurance through the Marketplace for the 2018 plan year. According to…

 OPTIONAL HOMEOWNERS ENDORSEMENTS TO CONSIDER       The majority of home owners have an insurance policy in place to cover their loses in the event of a claim. However, many home owners are not aware of other optional policy…

Reporting Claims – Architects/Engineers Professional Liability Policy Your firm is responsible for reporting a claim or circumstance to the insurance company as soon as your firm is aware of the situation.  This enables the insurance company to provide defense, if…

Social Engineering – What is this new phrase you have been hearing about?  Social engineering, in the context of information security, refers to psychological manipulation of people into performing actions or divulging confidential information. This is becoming very common and more…