Key factors to consider when choosing a professional liability insurance company for my architecture/engineering firm. When comparing your options, look beyond the price and consider these factors:
- Coverage limits: Ensure the policy offers sufficient coverage for potential liabilities, especially since large-scale architecture projects can carry significant risk. If your insurance company does not offer higher limits, there are excess policies available in the marketplace.
- Defense costs: Find out if legal defense costs are included within the policy limit or are paid outside the limit. Policies that offer defense costs outside the limit can provide more protection and do not deplete the limits.
- Retroactive coverage: A policy with a strong retroactive date will cover claims that arise from professional services you provided in the past, even before you purchased the current policy. The policy will either state a specific retroactive date or full prior acts, which means from the time your firm has had the professional liability insurance policy.
- Claims responsiveness: Look for a company with a strong reputation for handling claims efficiently. Consider reviews from other architects or engineers and the insurer’s customer complaint record.
- Risk management resources: Some providers, like those for AIA Trust members, offer seminars, contract review services, and other resources to help you minimize risk.
- Industry expertise: A provider with a dedicated team for architects and engineers is more likely to understand your firm’s specific needs and provide suitable coverage options.
It is also valuable to have an insurance agent who is familiar with the design professional needs. AE Pronet is an association of agents that focuses on insurance for architects/engineers. https://aepronet.org/
If your firm has any questions about key factors of a professional liability policy please call, or email, your Professional Underwriter agent for assistance.