Umbrella policy for architects/engineers explained-
An umbrella policy provides an extra layer of limits of liability over policies such as general liability, automobile liability and employer’s liability.
It is not uncommon for an architect/engineering firm to have an umbrella policy. Your firm may need that added layer of protection for your office space or it may be a contract requirement with your client.
The umbrella policy may be a part of your firm’s business owner policy or a separate policy. This will vary with each insurance company. Additionally the policy may have a per claim retention (similar to a deductible).
The umbrella policy, as stated above, will provide additional limits over specific policies. For example, your firm has a general liability policy of $1,000,000 per occurrence and umbrella policy for $1,000,000. If your firm exhausts the limits with a claim on the general liability policy then the umbrella policy kicks in.
Typically the umbrella policy will follow the effective dates as your business owner policy or general liability policy, especially if the policies are with the same company.
The umbrella policy will include a schedule of underlying insurance. Review your policy to verify that the policy information for the underlying policies is correct. This, you specially want to verify, if one of the policies is with a different insurance company.
Please note that the umbrella policy is not an additional limit over your firm’s Professional Liability policy. If your firm requires additional limits for Professional Liability that must be reviewed with the insurance company that writes that policy, it will not be a part of the umbrella policy coverage.
Umbrella policies are an excellent way to provide your firm additional limits for specific policies. If you would like a quote or have additional questions about the umbrella policy please call or email your Professional Underwriter agent.