Project policy vs. project Specific Additional Limit Endorsement (SALE). What is the different between a project policy and a SALE or project endorsement?
A project policy is a separate Professional Liability policy specific to a project that covers the whole design team. Typically the project policy is purchased by an owner or developer for the project. The policy does not cover the construction of the project but specifically the design errors or omissions on a project. There are a few carriers that do offer project policies however; it is limited at this time. There is an application to complete for the project policy in order to obtain a quote. Here is a link to one of our partners offering the project specific policies and additional information. http://www.schinnerer.com/Architects-and-Engineers/Project-Specific/
A project Specific Additional Limit Endorsement (SALE) is an endorsement to your current policy to increase the limits of liability on your Professional Liability policy for a specific project. For example, your Design Firm has a limit of $1,000,000 per claim and $1,000,000 aggregate and the contract for ABC School has a contract requirement for $2,000,000 per claim and $2,000,000 aggregate. Your Professional Liability insurance carrier may be able to offer the higher limit with a SALE for the additional $1,000,000 per claim and $1,000,000 aggregate. The SALE is the additional limit is specific to just that one project, ABC School. There are occasions that you may need a higher limit for multiple projects with the same client and the insurance carrier may be able to offer a client project limit (rather than a project limit) however, this option does vary from carrier to carrier.
Your PUI Agent is here to assist with the project policies and project endorsements, please call or email with any questions.