What limit of liability and deductible should my Design Professional firm carry on the Professional Liability policy?  This is a very good question and one that we get quite often.  There is no straight answer that can be given on this questions and simply because there is not any way to predict what a claim might turn into.  Here are some suggestions on things to think about when you are deciding on your firms Professional Liability policy.

What is the size of your firm?  Is your firm progressively growing?  Do you anticipate your firm will be doing more and larger projects going forward?  If so it would be good to have higher limits of liability.

If your firm is starting off get the highest limits of liability that your firm can afford.  There are many expenses that go along with starting a firm, it is important that you don’t over extend your expenses in the first few years of your firm.

What types of projects are you doing?  If you are doing more residential, which have a higher claims frequency, you may want to have higher limits of liability.

Do you have a contract requirement for a specific limit of liability?  This may be a driving force of what limits you will carry on your Professional Liability policy.

With regards to the deductible, it is important that you have a deductible that makes sense for your firm in the event of a claim.  You don’t want to have such a high deductible that if you have multiple claims in the year it becomes a cash flow issue for your firm.  The deductible amount doesn’t change the premium dramatically, so if possible, get the lowest deductible available.

Of course, the limits of liability and deductible amounts are going to depend on the size of your firm and what the specific carrier offers.  Be sure you check with your PUI agent to find out what options are available.