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 are deductibles available. The deductible will apply to medical and indemnity on the policy. By adding the deductible it will apply a credit to your firm’s policy premium. Most workers compensation include a $0 deductible unless otherwise indicated.
On the business owner policy the deductible will typically be $500 or $1,000 and will apply to business personal property. If your firm owns the building and if it is insured under the same policy it may have a different deductible for the building coverage itself. The deductible on the building will depend on the age and location of the building.
For Professional Liability the deductible is a little more detailed. Most small firms will be offered a $0 deductible. Small firm size will depend on the insurance company that is providing the quote. Your firm may be offered a deductible that is $2,000 per claim and $6,000 aggregate. This means if your firm has multiple claims in a policy period that the most your firm would pay is $6,000. Larger firms will likely be offered a per claim deductible without the aggregate deductible option. Additionally, the deductible for larger firms will be higher, such as $25,000. Also included with the deductible is a deductible option. There are first dollar deductible or straight deductible options available with insurance companies for Professional Liability.
Be sure to review the deductible options on all of your firm’s policies, including the type of deductible and deductible amount your firm currently carries. If you have any questions with regards to deductibles on policies call or email your Professional Underwriters agent for assistance.