Umbrella Policy

What is covered and not covered under an umbrella policy for architects/engineers?  An umbrella policy provides additional coverage or excess limits for your design firm.

What is covered under the umbrella policy?  For an architecture/engineering firm the ‘underlying’ coverages for an umbrella policy are general liability, automobile liability and employers’ liability (part of the workers compensation policy).  The underlying coverages will typically look like the following:

Type of Coverage Carrier Effective Date Expiration Date Limits
Business Liability RLI Insurance Company 02/01/2020 02/01/2021 Occurrence -$2,000,000Aggregate – $4,000,000
Employers Liability RLI Insurance Company 02/01/2020 02/01/2021 Each Accident – $500,000Disease Each Employee – $500,000

Disease Policy Limit – $500,000

Hired and Non-Owned Auto Liability RLI Insurance Company 02/01/2020 02/01/2021 Occurrence – $2,000,000

 

The umbrella coverage limit is $4,000,000 each occurrence and $4,000,000 general aggregate.  The umbrella policy may also included a per claim retention or deductible.  It is most common for the umbrella policy to ‘follow form’, meaning the policy will pay on a claim as the underlying policies would pay on a claim.

What policies are not covered under the umbrella policy?  The most common question for this is if the Professional Liability policy covered under the umbrella.  While it is common for contractors to have their general liability policy covered under the umbrella is not the same for design firms.   The Professional Liability policy is not covered under the umbrella policy.  If you need higher limits on the Professional Liability policy you can request that from the insurance company that provides the Professional Liability policy, the umbrella will not include this coverage.  Additionally the umbrella policy will not cover health insurance, long and short term disability and life insurance.

It is important that your firm understand what the umbrella covers and doesn’t cover.  If you have questions about what policies may be covered under this policy please call or email your Professional Underwriter agent.

umbrella policy