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 out of the cost to repair or replace faulty workmanship in any construction, erection, fabrication, installation, assembly, manufacture or remediation performed by any Insured, including the cost of materials, parts or equipment furnished in connection therewith.
Design of manufacture of goods or products
Based on or arising out of the design or manufacture of any products or goods which are sold or supplied by any Insured or by others under license from any Insured. However, this exclusion does not apply to software designed or modified for an individual client of the Insured in connection with the Insured’s other professional services for that client. In addition, this exclusion does not apply to the supplying of furnishings or fixtures by the Insured as part of interior design or decorating services.
Express warranties or guarantees
Based upon or arising out of any actual or alleged express warranties or guarantees. However, this Exclusion does not apply to a warranty or guarantee by the Insured that the Insured’s Professional Services are in conformity with the standard of care applicable to that Professional Service.
Insured vs. Insured
Made against the Insured by any person or entity:
- That is an Insured;
- That any Insured operates, controls or manages;
- That operates, manages, or wholly or partly owns any Insured; or
- In which the Insured or any Insured’s spouse or legal domestic partner individually or collectively with one or more Insureds has an ownership interest in excess of 49%.
If you have any questions with regards to Professional Liability policy exclusions please call or email your Professional Underwriters agent for assistance.