Deductibles in Professional Liability policies for architects and engineers

Deductibles in Professional Liability Policies for Architects and Engineers

There are many deductible options and it will vary based on the insurance company and the size of your firm.  Here are further details about deductibles and what may be available for deductibles.

Deductibles vary from $0 for small firms and upwards of $100,000 or more for large firms.  Deductibles are quoted based on the capacity of the firm’s ability to contribute to the claim.

Your firm’s deductible may also have an aggregate deductible.  If there were multiple claims in a policy period, the aggregate deductible is the most your firm will pay in deductibles for the policy period.

Your firm’s policy may also include a mediation deductible credit.  This may be defined as:

If the Company and the Insured agree to resolve a claim through voluntary mediation and the claim is resolved through voluntary mediation, the Insured’s deductible obligation for such claim will be reduced by 50% subject to a maximum reduction of $25,000.

Supplemental payments, such as defense of disciplinary actions, pre claims assistance and FHA, OSHA and ADA proceeding reimbursements are not subject to the deductible.  With pre claims assistance, if the pre claim does turn into a claim the deductible would then apply.

There are also different deductible types, straight deductible and first dollar deductible.  Straight deductible is paid as soon as a claim is opened with the insurance company.  That payment may go directly to the appointed attorney or is paid directly to the insurance company.  With first dollar deductible the deductible applies only if there is a settlement or indemnity paid.

There are several deductible options that may be available to your firm.  It is important to understand the deductible prior to the time of a claim.  If you have questions regarding your claim, please call or email your Professional Underwriter.


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