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 incurred in connection with the defense of a Claim for a Wrongful Act or a Pollution Incident if incurred by the Insurer, or by the Insured with the prior written consent of the Insurer; and

b. all other reasonable and necessary costs and expenses resulting from the investigation, adjustment, defense and appeal of a Claim, suit or proceeding arising in connection therewith, if incurred by the Insurer or by the Insured with the prior written consent of the Insurer; and

c. premiums for appeal bonds for covered judgments or bonds to release property used to secure a legal obligation, if required for a Claim for a Wrongful Act or a Pollution Incident against any Insured but only for bond amounts within the remaining Policy limit, provided, however, that the Insurer shall have no obligation to appeal or to obtain such bonds.

Claim Expenses do not include any salary, overhead or other charges of or by the Insured for any time spent in cooperating in the defense and investigation of any Claim noticed under this insurance. Claim Expenses do not include costs or expenses incurred by the Insurer for Loss Prevention Assistance. Claim Expenses do not include any fees and expenses incurred prior to the date the Named Insured first provided notice of a Claim to the Insurer. 

This definition will vary with each insurance company. Carefully read your firms policy to have a clear understanding of what is covered under a claims expense. Also, keep in mind that claims expenses are within the limits of liability in a professional liability policy.

If you have any questions with regards to professional liability claims expenses please call or email your Professional Underwriters agent for assistance.