Good to Know – Architect/Engineers Professional Liability Policy

Good to Know – Architect/Engineers Professional Liability Policy

There are many items to review on your firm’s professional liability policy but it’s always good to know a few tips with regards to the policy.

Most professional liability policies have a crisis event limit included in the policy.  The amount will typically be around $10,000 and it will cover the following events.

Crisis Event means any:

1. Wrongful Act;
2. death, departure or debilitating illness of a Principal Insured;
3. potential dissolution of the Named Insured;
4. incident of workplace violence; or
5. other event, that the Named Insured reasonably believes will have a material adverse effect upon the Named Insured’s reputation.

The professional liability policy also provides a limit for Disciplinary or Regulatory Proceeding.  This amount will commonly be $25,000.  The definition of the proceeding is:

Disciplinary or Regulatory Proceeding means any formal administrative or regulatory proceeding by a disciplinary or regulatory official, board or agency, commenced by filing of a notice of charges, formal investigative order, service of summons or similar document, to investigate charges of professional misconduct in the performance of Professional Services.

Professional liability policies may also pay for loss of earnings.  This is how it is referred to in a policy:

All reasonable expenses incurred by the Insured at the Company’s request to investigate or defend a Claim, provided that the maximum amount available for loss of earnings for time taken off work will not exceed:

1. $500 per Insured Person per day; and
2. $15,000 per Policy Year for all Insured Persons.

These are just a few of the additional benefits to be aware of in a professional liability policy.  As always, be sure to read your policy to have a full understanding of the coverages.  If you have any questions please call, or email, your Professional Underwriters agent for assistance.