Reviewing professional liability quotes for architects/engineers-
There are several items to be aware of when reviewing renewal quotes for professional liability.
The first consideration is the retroactive date on the policy. This is the date the insurance company will define how far back in time a loss for a claim may be covered. With professional liability, this may be full prior acts, a specific date or policy inception. When reviewing quotes verify that the retroactive date meets the date that your firm was started and continued a policy.
The exclusions on a professional liability policy are important. There are standard exclusions such as guarantees and warranties. However, the insurance company may add other exclusions such as a condominium exclusion.
The deductible and deductible type are important items to be aware of on the quotes. The deductible and deductible type can have an effect on the premium but more importantly, it has an effect at claim time.
Not all policies are equal, be sure to review the professional liability specimen policy before purchasing the policy. The quotes will provide highlights of the policy but not the full details that a policy provides.
The premium is a major consideration when reviewing professional liability quotes. However, be aware, just because the premium is low does not mean the policy has all that is needed. If the premium is low, this is the time to review the policy and know what is not included or one of the items above may be missing, such as a retroactive date.
Finally, not only is it good to review the policy and quotes thoroughly, ask colleagues, associations and your insurance agent on the dealings with the insurance companies. Your firm purchases the insurance to provide protection in the event of a claim. How is the claims handling with the insurance company? What law firms in your area are they working with?
If you have any questions about professional liability quotes please call or email your Professional Underwriters agent for assistance.