How does my architects/engineers Professional Liability work as I prepare to retire?

This will depend on if you work at a firm, a principal of a firm or if you have your own firm. Additionally, it will depend on the insurance company your Professional Liability policy is with.

If you work for a firm or are a principal of a firm you typically are covered by the policy as long as the firm doesn’t close and has an ongoing Professional Liability policy. The definition of insurance insured will determine if a retiree is covered under the policy. Here are a few examples of the policies definitions.

Example one:

a retired partner, officer, director, member, stockholder or employee of the Named Insured or newly acquired subsidiary, but only for professional services or activities performed for or on behalf of, at the request of, and for the benefit of the Named Insured or newly acquired subsidiary

Example two:

Any retired partner, principal, officer, director, shareholder, employee, or member of the Named Insured while acting within the scope of their duties as a consultant for the Named Insured or any predecessor firm

As long as the firm continues the policy there is coverage for the retired employee or principal.

If your firm is a one or two man firm and you anticipate closing your firm you have the option to purchase an extended reporting period (tail policy). This, again, will vary depending on the insurance company but most companies offer up to five years of a tail policy. The premium is based on the expiring premium and all projects must be complete.

In most cases, for your retirement, you will be covered. Read your policy and speak with your firm to determine the coverage available. If you have questions please call or email your Professional Underwriter agent.