What does my firm’s insurance policy cover?
There are many insurance policies in the marketplace and many that are specific to architects and engineers. Below is a brief description of what each policy covers.
Professional Liability – This is the most important policy for a design firm. The policy covers damages and defense expenses for ‘wrongful acts’ acts by your firm. Wrongful acts are defined as actual or alleged act, error or omission by your firm or its employees.
General Liability – The policy typically cover you and your company for claims involving bodily injuries and property damage resulting from your operations, outside of errors or omissions of your firms design work. It may also cover you if you are held liable for damages to your landlord’s property.
Automobile Liability – This coverage is typically part of the business owner policy and may also be know as hired and non-owned auto liability. This coverage protects the business against third-party claims that arise out of auto accidents.
Workers Compensation – The policy covers the expenses that come with an employee’s work-related illness or injury. This may include immediate costs like an ambulance ride to the ER and long-term costs like physical therapy or lost wages. There’s even a portion that covers your legal fees if an employee decides to sue.
Cyber Liability – This policy covers the cost for a business to recover from a data breach, virus, or other cyber attack. It also covers legal claims resulting from the breach. There are policies specific to architects and engineers for cyber liability.
Employment Practices Liability (EPLI) – The policy provides coverage to employers against claims made by employees alleging, discrimination (based on sex, race, age or disability, for example) or wrongful termination in the workplace.
If you have questions with regards to what an insurance policy will cover for your design firm please call or email your Professional Underwriter agent.