The importance of reading your architecture/engineering firms Professional Liability policy

The importance of reading your architecture/engineering firms Professional Liability policy….

Your firms Professional Liability policy is probably one of the most important insurance policies your firm has that is directly related to the work that your firm does.  It is to your benefit to understand what is included in the policy.

Most insurance companies have added benefits of having a Professional Liability policy.  These include pre-claims assistance, risk management webinars, and contract reviews.   The Professional Liability policy may include this information as to each of the additional services the insurance company offers.

The reason your firm has a Professional Liability policy is for the unfortunate event of a claim.  The policy includes where to report a claim to the insurance company and your firm’s duties in the event of a claim.

Most Professional Liability policies include supplementary payments in the event of a claim.   These may include reimbursement of expenses, loss prevention assistance, ADA and OSHA expense reimbursement and crisis management expenses.  The supplementary payment details are included in your policy, be sure you understand what is included in your firms policy.

Exclusions section is another portion of the policy that is good to read and understand.  The reason your firm want should be aware of the exclusions, is that you don’t want to be doing work that may not be included in your policy; it defeats the purpose of having the policy in the first place.  Generally speaking the exclusions on most policies are for products liability, employers’ liability, warranties or guarantees, automobile and contractual liability.

Definitions are also included in the policy.  While this may seem like an odd section to review, it is maybe one of the most important areas.   It defines what an insured is, what a claims expense are, how mediation is defined, clarification of professional services, and what is considered a written agreement.

The areas above are sections of the policy to be aware of, it is strongly suggested that your firm reads and understands the full policy.  If you have questions please call or email your Professional Underwriter agent.


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