What to Know About the Design Professionals Errors and Omissions (Professional Liability) Policy

While the policy is not complicated to read, there are some areas to be aware of when you purchase your policy.

First section that you will want to be aware of is the exclusions section.  This section of the policy will detail what is excluded, such as nuclear, asbestos, mold, contract liability, products, warranties and guarantees.  These are very important for your firm’s work and the contracts that are signed for the projects.

Another segment to pay attention to is the declarations pages (first few pages of the policy).  This includes the first named insured, effective dates and retroactive date.  The first named insured is the entity that is able to make changes to the policy.  The policy may also include other entity names if the firm name has changed over the years.  The effective date of the policy is included on these pages. Verify that this date is correct; your firm doesn’t want to have issues if it does go to a claim.   The retroactive date is the date that your firm started a policy and had continuous coverage.  Depending on the insurance company this may be a specific date or it may state that it is full prior acts.

Risk management resources are often listed in the policy pages.  These may be items such as where to send contract reviews, if pre-claims assistance is offered, webinars and newsletters available with the insurance company.  The email and/or phone number for claims will also be listed in the policy.

As always, please read your policy.  It is a very important purchase for if/when your firm does have a claim.  If you do have questions please call or email your Professional Underwriters agent.