Project Exclusions on Professional Liability for Architects/Engineers

The question often comes up as to specific project exclusions or inclusions in a Professional Liability policy.  The answer is it depends on your policy.  Read your policy to understand what projects are excluded in your Professional Liability policy.

Professional Liability insurance companies will and can exclude project types but it must be indicated in the policy.  If your policy does have an exclusion for a project type your firm will most likely know that before binding the policy with the company.  The most common types of exclusions for project types are condos, pools, amusement rides and playgrounds.  These are considered high risk type projects based on past claims experience.

Most carriers, if it a project type they are not interested in, won’t quote your firm if your agent is getting a quote from a different carrier than your current company for your renewal.  If your firm is with an insurance company and the question of a project type does come up be sure to ask the insurance company about the project.   The project may increase your premium but the insurance company may not know by how much until your next renewal occurs.

Project types can be tricky, especially if it is a project that the insurance company doesn’t have a lot of experience with the project.  Provide as much detail as possible to the insurance company the better to make a determination of the project type exclusion or inclusion.

You firm may also want to ask the question of a project endorsement or a separate project policy for the design team if it doesn’t fit into your current insurance companies’ wheelhouse.

If your firm does have a question about a specific project type call or email your Professional Underwriters agent.