What is your architecture/engineering firm responsible for in the event of a professional liability claim?

Your firm is responsible for working with the insurance company on the professional liability claim.  This entails several items.

First, reporting the claim with as much detail as possible.  A claim is defined in each policy but here is an example of some language.

“Claim” means a demand for money or services, including, but not limited to a complaint in a civil proceeding in a court of law or in an arbitration proceeding, received by an Insured arising out of one or more of the following:

(1) a Wrongful Act;

(2) Pollution Incident; or

(3) Network and Information Security Breach.

Then, a claims representative will be in contact with your firm about the claim.  They may ask for additional items such as the contract, designs, communications, etc.

Your firm will be asked to cooperate on the claim per the policy language:

Assistance and Cooperation

(1) The Insured will cooperate with the Company in the defense, investigation and settlement of any Claim. Upon the Company’s request, the Insured will attend hearings, depositions and trials and assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits and proceedings in connection with a Claim.

(2) The Insured will assist in the enforcement of any right of contribution or indemnity against any person or organization who or which may be liable to any Insured in connection with a Claim.

(3) The Insured will not, except at the Insured’s own cost, voluntarily make any payment of Claims Expenses or Damages, assume or admit any liability or incur any Claims Expenses or other expense without the prior written consent of the Company.

Lastly, your firm will be responsible to pay the deductible.  This will vary on amounts and the deductible types, please refer to your firm’s policy.

If you have any questions about your firms responsible on a professional liability claim, please call or email your Professional Underwriters agent for assistance.professional liability claim