Key definitions in an architecture/engineer professional liability policy-
The whole policy is important for your firm but there are a few definitions to review.
The definition of the insured and insured person is important. Depending on your firm’s policy there will be different ‘insureds’ included in the policy, for example:
Insured means any Insured Person, Named Insured, or Predecessor Firm.
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.
Professional services are another area to review. You want to make sure that any services your firm provides are included in the policy.
“Professional Services” means services performed by an Insured for others in the Insured’s practice as:
(1) an architect, engineer, land surveyor, landscape architect, construction manager, space planner, land planner, interior designer, scientist, technical consultant, or expert witness professional; and
(2) a member of a formal accreditation, standards review, or other professional board or committee for the Design Professional profession.
Another important definition to review is how is a claim defined. Some carriers will say it is a verbal demand while others will require a written demand.
- a demand for money or services;
- a civil proceeding commenced by service of a complaint or similar pleading; or
- a written request to toll or waive a statute of limitations relating to a potential civil or administrative proceeding, against any Insured for a Wrongful Act.
As always review your firm’s policy to have a full understanding of what is covered. If you have any questions please call, or email, your Professional Underwriters agent for assistance.