Review of supplementary payments in a Professional Liability policy for Architects and Engineers
The supplementary payments will vary for each insurance company, be sure you review your policy so that you are aware of the supplementary payments in your firm’s policy. Supplementary payments are typically not subject to the deductible and are in additional to the limits of liability defined in the policy.
Pre claim assistance and prevention services
The insurance company will pay for reasonable fees, costs and expenses incurred during the investigation of a potential claim. Pre-claims assistance is there to; hopefully, alleviate your firm from becoming involved in a claim.
FHA, OSHA and ADA proceeding reimbursements
The amounts will vary with each company. An example of the policy wording is as follows:
The Company will reimburse the Insured up to a maximum of $25,000 per policy period for all reasonable and necessary attorneys’ fees, costs and expenses incurred by counsel in responding to regulatory or administrative actions brought directly against the Insured by a governmental agency under the Fair Housing Act (FHA), Occupational Safety and Health Act (OSHA) or the Americans with Disability Act (ADA), provided that the regulatory or administrative action under FHA, OSHA and ADA is first commenced against the Insured during the policy period and is the result of an Insured’s act, error or omission in the performance of professional services.
Reimbursement for loss of earnings
Again, the amounts will vary by each insurance company. The best way to describe this supplementary payment is by policy wording:
The Company will pay up to $500 for loss of earnings to the Insured for each day or part of a day the Insured is in attendance, at the Company’s request, at a trial, hearing, arbitration or mediation in connection with a Claim against the Insured. The maximum amount payable, regardless of the number of trials, hearings, mediations or arbitration proceedings or the number of Insureds, shall be $7,500 per Claim and $25,000 for all Claims during the Policy Period.
These are some of the examples of the supplementary payments in Professional Liability policies. Other types of payments that may be included are defense of disciplinary actions and crisis events. As always be sure you read your policy for the supplementary payments with your insurance company. Please call or email your PUI Agent with questions.