Architects and engineers provide professional services, the do not sell products. That is why Architects and Engineers need errors and omission insurance or Professional Liability Insurance. If you look around, some architect designed every building that you see. They have large risks that can run for many years past completion of the design phase and construction of the building.
Architects and engineers professional liability insurance can cover the professional’s legal liability arising out of service performed for clients. If you are a design professional, engineer, landscape design professional, or specialty construction professional, you should consider professional liability insurance.
Why Architects and Engineers Are Sued
- Human error
- Failing to do the right thing
- Failure to understand building codes
- Not obtaining specialized help when needed
Common Coverage Design Features of an Architects and Engineers Insurance Policy
Every professional liability policy and insurance company is different, but we wanted to provide a few examples of the types of coverage found in many architects and engineers policies.
- Coverage for professional design including negligence, personal injury, and more.
- Expanded definition of professional services.
- Contingent Bodily Injury/Property Damage.
- Coverage for pollution, asbestos, and equity interest.
- Coverage for joint ventures.
- Coverage for specific projects.
Common Exclusions Found in Architects and Engineers Insurance Policies
- Intentional acts
- Violation of laws
- Claims made from one insured to another insured
- Dishonest acts
- Criminal acts
- Employment liability
- Liability assumed under contract
- Faulty workmanship
What Can an Architect or Engineer Do to Limit Their Liability?
- Set client expectations
- Get everything in writing
- Take good meeting notes
- Allow the client to make hard decisions
- Be proactive in handling client complaints
- Try to include a mediation clause in your contract
Most architects also maintain other kinds of commercial/business insurance products as part of their overall risk management program. These might include.
- Employment liability
- Commercial General liability
- Commercial Auto
- Property Insurance
- Workers’ Compensation an
- Umbrella or Excess Liability Policy
Please contact us for a quote here.
A Few Final Thoughts
All professional liability policies are written on a claims-made form, so it is essential to have a clear understanding of how policy dates rate to the term of the claims-made provision on the policy.
If you would like a Professional Liability quote please contact us here.