Is there a project policy available for one specific project?

project policy

Project Policy

Is there a project policy available for one specific project?  We often get this question with regards to Professional Liability for Design Professionals.  Is it possible to get a project policy?  Below is a breakdown of the possible options depending on the situation.

If the contract for the project is requiring high limits of liability than you current have on your Professional Liability policy the insurance company may be able to offer a project endorsement.   The project endorsement (or Specific Additional Limit Endorsement – SALE) will provide higher limits for just the one specific project.  For example, your current policy has limits of $1,000,000 per claim and $1,000,000 aggregate.  The project contract requires $2,000,000 per claim and $2,000,000 aggregate.  The insurance carrier will provide the additional $1,000,000 per claim and $1,000,000 for the specific project as a project endorsement.  The endorsement will list the project specifically and the higher limits will not apply to any other project.

On occasion your firm may be asked to provide a project policy.  This is a whole separate policy for just the specific project.  These are available with some insurance carriers and cover the whole design team, not just your firm.  The pricing will vary depending on the carrier and the type of project.

There are also wrap policies in the marketplace, these will cover the whole project team, not just design team, but typically are just General Liability policies and not Professional Liability to cover the design work.

We also get asked the question; can my firm just get a policy for this one project instead of a practice policy?  These are not available in the market for just your firm to get a policy for just the one project.  Insurance companies will insure your firm as a whole practice but not just the one project.

There are different options available for project policies or endorsements.  If you have any questions about project policies or project endorsements please feel free to call your PUI Agent to discuss.


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