importance of reading policy

The importance of reading your architecture/engineering firms professional liability policy

Reading your insurance policies is important regardless of what type of policy it is.  However, the professional liability policy is unique to each insurance company, and it is always good to know your firm’s policy, especially if you switch insurance companies.

The most important reason to read your firm’s policy is the declarations pages of the policy.  Is your firm name correct, do other firm names need to be added.  Are the limits and deductible the same as what was bound?  What is your firm’s retroactive date, and does it match past policy retroactive dates?

Another good reason to read your firm’s policies are the different definitions that each insurance companies have.  For example, the definition of an insured will vary with each insurance company.  Some insurance companies do not include sub consultants as an insured, while others do.  Here is an example:

Insured Person means any natural person who:

  1. is the sole owner of, or is or was a partner in, the Named Insured or Predecessor Firm;
  2. was or is a member of the board of managers, director, executive officer, or shareholder of the Named Insured or Predecessor Firm;
  3. was or is an employee of the Named Insured or Predecessor Firm; or
  4. was or is an Independent Contractor, provided that such person is acting within the scope of their duties on behalf of the Named Insured or Predecessor Firm.

The exclusions on the policy are really important to know.  If condos or another specific project type are excluded that will be detailed in your firms policy.

Other areas to be aware of are the claims reporting, pre claims assistance program and any risk management programs that may be available with your insurance company.

Always, always, always read your firms professional liability policy.  If your firm has any questions about professional liability please call, or email, your Professional Underwriter agent for assistance.

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