certificates of insurance

The importance of reading your architecture/engineering firms renewal policies

While it may seem a bit tedious it is important to read your firm’s insurance policies to know the details of each policy.

Your professional liability policy is what is called a manuscript policy, what this means is there is not an industry standard for the policy.  With that being said, insurance companies will have similar type wording and sections of the policy, but there could be some differences.  For example, there is a clause that is referred to as the ‘hammer clause’ in some policies.  This means that your firm does not have to consent to a settlement.  The hammer clause is more common on policies that are surplus lines or if your firm has had some claim issues.

For the workers compensation policy, your firm may have multiple locations, and those locations have different requirements or portions of the policy that apply to each location.  Again, review the policy to make sure your firm understands what those different state requirements are with regards to reporting and posting notices.

The business owner policy, which is probably the lengthiest policy, may have specific endorsements that apply to architecture and engineering firms.  These endorsements may be added coverage for specific types of artwork, such as your firms models, or exclusions for specific construction work.  Additionally, the general liability will likely have a blanket additional insured endorsement that requires the additional insured language included in your firms contract to trigger the additional insured endorsement.

Overall, all policies need to be reviewed to verify that your firm name, address and limits are correct on all policies.  This is a good time to update these items if you have not already reported them to your insurance agent.

If your firm has any questions with regards to specific portions of your firm’s policies please call, or email, your Professional Underwriter agent for assistance.

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