Comparing professional liability quotes for architects/engineers-

While it is easy to look at a renewal premium with different companies and choose based on the premium, there are several policy terms to consider when choosing an insurance company.

One major item to consider is the deductible and deductible type.  There may be some insurance companies that will offer the same deductible and deductible type but if there are several options, consider those as well.  To increase a deductible isn’t always a large premium savings, it may not be worth the small premium savings to jump to a larger deductible.

The extended reporting period options and premiums for the extensions are also important to review.  Does the insurance company offer more years than another or is the percentage of expiring premium a better savings with a specific insurance company?  Some insurance companies offer 1-, 2-, 3- and 5-year options.  What makes the most sense for your firm?

How does the insurance company define an insured?  Some insurance companies will include temporary or leased employees.  While other insurance companies will allow for sub consultants to be an insured on your firm’s policy.  Most policies will include retirees on the policy, but again review the policy to know for sure.

Is there a deductible mediation credit available and what does that mean for your firm in the event of a claim that is settled in mediation?  Each insurance company will have a different definition of this credit.  For example, the credit may be 50% up to $12,500.  Be sure to review the mediation credit on the insurance company policies.

Does the policy include a ‘hammer clause’.  This means that the insurance company does not need your firms consent to settle a claim.  While this isn’t common to have a hammer clause there are policies and endorsements out there that do include this clause.

Other items to review are the pre-claims assistance, contract review services and risk management available.

If you have any questions about a professional liability policy with a specific company, please call or email your Professional Underwriters agent for assistance.