Who is an insured under a Professional Liability policy for Architects & Engineers?
This will be defined differently with each specific insurance company. Be sure you read the policy and understand the definition and how it relates to your firm. Here are a few examples of the definition of an insured.
Navigators Insurance Company policy definition:
- The Named Insured;
- Any predecessor firm;
- Any past or present partner, principal officer, director, shareholder, member, independent contractor or employee of the Named Insured, including leased personnel under the direct supervision of the Named Insured, but only while acting within the scope of their duties as such for the Named Insured or any predecessor firm;
- 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;
- Any spouse or legal domestic partner of an Insured or Named Insured in paragraph 3. above, but only to the extent such Insured or Named Insured would otherwise have been provided coverage under this policy;
- The estate, heirs, executors, administrators, assigns and legal representatives of any Named Insured or Insured in paragraph 3. above, in the event of the Insured’s death, incapacity, insolvency or bankruptcy, but only for claims arising out of professional services performed by or on behalf of the Named Insured prior to such Insured’s death, incapacity, insolvency or bankruptcy;
- Any newly formed or acquired entity by the Named Insured during the policy period in which the Named Insured has more than 50% legal or beneficial interest.
Travelers Casualty & Surety policy definition:
- Insured Person means any natural person who:
- is the sole owner of, or is or was a partner in, the Named Insured or Predecessor Firm;
- was or is a member of the board of managers, director, executive officer, or shareholder of the Named Insured or Predecessor Firm;
- was or is an employee of the Named Insured or Predecessor Firm; or
- was or is an Independent Contractor, provided that such person is acting within the scope of their duties on behalf of the Named Insured or Predecessor Firm.
In these examples you can see that companies have each slightly different definitions of what an insured means. If your firm changes insurance companies it is important to know what the definition is with the new company.
Also, always keep in mind that clients and other consultants cannot be an additional insured on the Professional Liability policy. If your client is asking to be an additional insured this language can typically be accomplished on the General Liability policy of your firm.
Please let your PUI Agent know if you have any questions about the additional insured language in your firm’s policy, we are here to help.