Higher Limits for your Professional Liability Policy

Requests for higher limits for your architecture/engineering Professional Liability policy-

It happens quite often that your firm will be asked to increase your Professional Liability limit of liability on your policy. Here are a few good things to know when you do need a quote for higher limits.

The insurance companies will ask for a few items when your firm is requesting higher limits on your Professional Liability policy. They will need the project type, services offered, billings for the project (including sub consultants), and the approximate construction value of the project. The insurance company may also request a project endorsement application for the higher limits and a copy of the contract.

There are a few different ways the insurance company may approach the increased limit request. A request comes in for your firm to provide $2,000,000 per claim/$2,000,000 aggregate and your firm’s current limit is $1,000,000 per claim/$1,000,000 aggregate. The insurance company may increase your firms practice limits to meet the requirement. They may quote an endorsement to increase the overall practice limits, meaning it is in excess. Or they may provide a project endorsement for the increased limits.

The insurance company will make a determination on how they may offer a higher limit based on your firms billings, the project itself, if your firm has claims and if the limit request meets the insurance company guidelines. There are many factors, just like your firms renewal, that go into to determining the increased limits.

Additionally, the insurance companies will have limitations on the limits of liability they can provide. Each insurance company has a maximum amount they can provide on limits of liability. There are times that other insurance companies can be tapped into for excess limits if your insurance company is not able to provide the limit request.

Your firm may receive requests for the higher limits and if you do discuss the options with your insurance agent. If you have questions please call or email your Professional Underwriter agent.