Exclusions on a Professional Liability Policy for Architects/Engineers
While the exclusions will vary with each insurance company there are several that are quite common amongst most policies. Here are some sample wordings of common exclusions on policies.
Example one:
Based on or arising out of the cost to repair or replace faulty workmanship the Insured performed on any construction, erection, fabrication, installation, assembly, manufacture, remediation, drilling, dismantling, demolition, excavation, dredging, including the cost of equipment, parts, or materials furnished in connection therewith. However, this exclusion does not apply to drilling, excavation or other sampling or testing procedures required to perform professional services otherwise insured by this policy.
Example two:
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.
Example three:
Claims by Certain Persons or Entities
based on or arising out of any Claim made against an Insured by any person or entity:
(1) that is an Insured;
(2) that any Insured operated, controlled or managed;
(3) that operates, manages, or wholly or partly owns any Insured; or
(4) in which the Insured or any Insured’s lawful spouse or qualified domestic partner, individually or collectively with one or more Insured(s) has an ownership interest in excess of forty-nine percent (49%).
Example four:
Contractual Liability
arising out of:
- the Insured’s actual or alleged liability under any oral or written contract or agreement, including but not limited to express warranties or guarantees; or
- any actual or alleged liability of others that the Insured assumes under any oral or written contract or agreement.
However, this exclusion shall not apply to the Insured’s liability that exists in the absence of such contract or agreement.
These examples of exclusions will be different with each insurance company. Read your policy to have a full understanding of exclusions that are included in your firm’s policy. If you have questions please call or email your Professional Underwriter agent.