Multi-year Professional Liability policies for architects/engineers – Some insurance companies, depending on your firm’s size, may offer a multi-year policy at renewal time. The policy terms available with some insurance companies may be two or three years.
There are a few things to consider when and if you are offered a multi-year policy. If your firm expects to have lower billings in the upcoming year after your renewal and are offer a multi-year policy you may want to just accept a one year policy. The reason being is since your firms billings will be lower your premium may also decrease for that following year. Adversely, if your firm’s billings are going up or maintaining in the following renewal year and you are offer a multi-year policy, it may be best to accept the multi-year offer. There are some cases that the multi-year offer is not an option and your firm must take the multi-year policy.
There are some benefits to the multi-year policy offer as well. Your firm will be able to easily budget for the upcoming renewal policy period because the premium is locked in for the two or three year policy period. The premium is not all due up front for the two or three year policy term. Your firm will pay the annual premium each anniversary date. There are some Professional Liability policies that will offer a discount if your firm does decide to pay the two or three years up front.
Your firm will not need to complete a Professional Liability renewal application until the two or three year policy term is complete. If you do have any significant changes to your firm be sure to alert your agent or the insurance company.
With the multi-year policy it is important that your policy includes or has an endorsement that reinstates the limits each anniversary date. Review your policy to verify that this is included.
If there are any questions with regards to multi-year policies please call or email your Professional Underwriters agent for assistance.