Project Endorsement on a Professional Liability Policy for Architects/Engineers

Project Endorsement on a Professional Liability Policy for Architects/Engineers

Your firm may receive a request to increase your limits of liability on your professional liability policy for a specific project.   This typically can be accommodated with insurance companies with an application for additional information.

A project endorsement will increase the limits for a specific project for your design firm. For example, your firm has limits of $1,000,000 per claim/$1,000,000 aggregate. Your firm’s client requests higher limits of $2,000,000 per claim/$2,000,000 aggregate. The project endorsement would be in the amount of $1,000,000 per claim/$1,000,000 aggregate to meet the contract requirement.

The insurance company will request an application that pertains to the specific project requesting the higher limits of liability. The application asked questions about design timelines, construction timelines, billings for the project, services offered by your firm, etc. With that, the insurance company will determine the premium and if they are able to provide a quote for the project.

From time to time, the insurance company may increase your firms practice limits rather than a specific project endorsement. This will depend on the insurance companies underwriting guidelines. Also, the insurance company may not be able to increase the limits of liability based on the factors in the application, for example, condo projects may not be an accepted project type for the project endorsement. Additionally the insurance company may not be able to meet the increased limit of liability amount, such as a $10,000,000 request.

The project endorsement is different from a project policy. A project policy will cover the whole design team for the specific project and is a separate policy from your firms practice policy.

If you have any questions with regards to project endorsements please call or email your Professional Underwriters agent for assistance.project endorsement


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