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 insured on Professional Liability. This is not true, your architecture/engineer firm’s clients cannot be listed as additional insured. They are not the professional on the policy and therefore are not eligible to be listed on the policy. This is often confused with being listed on general liability, which typically can be accomplished depending on your firm’s policy.
Cyber liability is covered under my firm’s Professional Liability policy. Some policies may have some coverage that covers for cyber liability as it related to your design work. However, most policies do not have cyber coverage. It is suggested that your firm have a separate cyber liability policy.
Insurance companies will provide 10 days’ notice of cancellation for non-payment. This is true that your firm will receive 10 days’ notice of cancellation. This does not mean that your client will receive the notice. Most insurance companies will provide 30 days’ notice of cancellation to certificate holders but not for non-payment of premium or material changes to the policy.
If I report anything to my firm’s insurance company it will count against me. This is not true, in fact your firm is contractually obligated to report any and all claims. Additionally, Professional Liability policies have pre-claims assistance. If your firm wants to prevent a situation turning into a full blown claim the pre-claims assistance may be the way to go.
My firm doesn’t have an office space we lease so we don’t need general liability coverage. Generally speaking if your firm doesn’t have an office space you are not contractually required to have general liability. However, it is recommended that your firm does have a general liability policy that coverage your firm outside of your design work.
If you have questions with regards to insurance coverages please call or email your Professional Underwriters agent for assistance.