What is the first dollar deductible for architects/engineers on a Professional Liability policy?

The first dollar deductible option may be available to specific firms that meet the insurance company requirements.

It is good to understand what the first dollar deductible is first.  When a claim is opened there are claims expenses that will begin right away.  The first dollar deductible option is also referred to damages only deductible.  This means your firm is responsible for the deductible in the event that there are damages paid or a settlement has been reached.  If there is not a settlement, with the first dollar deductible, then your firm is not required to pay the deductible.

The first dollar deductible option will be available depend on the insurance company quoting your Professional Liability, the size of your firm, claims history of your firm and in some cases project types for the past fiscal year.

Conversely, with the straight deductible your firm is responsible for the defense costs up to the deductible as soon as claim is opened.  The straight deductible option is also known as the expenses and damages deductible.  The straight deductible is common with larger firms or firms that have had an adverse claims history.

The premium for the first dollar deductible option is higher than the straight deductible.  The first dollar deductible option will also be available, typically, on smaller deductible amounts.

If you are not sure what type of deductible your firm has, read your policy or ask your agent.  This will make a difference at the time of a claim and it will determine whether your firm pays the deductible or not.  If you have questions about the deductible options please call or email your Professional Underwriters agent. first dollar