Completing the Professional Liability Application for Architects/Engineers
It seems as though it could be a daunting task to complete the Professional Liability application, however from year to year much of the information may remain the same. It is important, however, to complete the application with accurate information.
Professional Liability applications for architects/engineers have several parts to them. The first being your firms name and contact information. The named insured is what will appear on the policy, be sure this information is correct. Also, if your firm doesn’t have website make sure you provide a brochure or any additional information about your firm for the insurance companies to review.
Probably the most important piece of information that will be requested is your firm’s billings. The amount of years requested will vary with insurance companies but typically it will be two years back, the current year and projected year. This will be your firm’s gross billings for each year. Some insurance companies ask for sub consultant fees to be broken out or to have expenses taken out from the total as well. If your firm has feasibility studies, master plans, reports and opinions as part of the billings, the insurance company may ask for billings related to those services. They are considered lower risk services and are rated different.
The project types are another important piece of the application. The project types are based on the past fiscal year billings. It will break down the percentages of each type of project your firm did for that year. If there is project type that doesn’t fit in the categories provided, include that project in the other section and provide further detail on the project.
The insurance company will also ask for your firm’s disciple. Meaning, are you an architect, civil engineer, or interior designer? There is typically a list of disciplines on the application to choose from. Do not include your firms sub consultants in this section, only what your firms disciple is will be included.
Other sections that may be included are details on condo projects, if your firm has any. A list of largest projects, typically five, from the past fiscal year may be requested. Who are your clients; developers, government, other design professionals? The insurance company may ask if your firm has projects outside of the U.S. and a list of those projects.
The insurance companies will ask a series of risk management questions; these will again vary with each company. Including, types of contracts used, contracts with subs and construction observation.
Last but not least are the claims questions. If your firms have claims you will need to provide details of those claims. The insurance company may also ask for lessons learned explanation from those claims.
Don’t forget to sign and date the application. Then review thoroughly to verify it is accurate and complete. If you have questions please call or email your Professional Underwriter agent.