For architects/engineers the professional liability policy is likely one of the more expensive insurance purchases. It is important to know some key factors to be aware of when choosing a professional liability policy.
Does the insurance company have a strong rating with A.M. Best https://web.ambest.com/home? If not, there may be some financial issues that are happening within the insurance company and your firm may want to consider this in your decision making.
How are the professional liability insurance claims handled? The reason your firm purchases the insurance is for the insurance company to handle a claim if it presents itself. Check with your insurance agent and colleagues as to the handling of the professional liability insurance claims. In addition, does the insurance company provide free pre-claims assistance?
Is the insurance company offering a retroactive date of full prior acts or at least back to the start of your firm having an insurance policy? This is key, especially if your firm is switching insurance companies, to make sure the retroactive date matches your current policy.
Will your firm have a local insurance agent to contact with questions? Having a local agent is important because they know the climate of not only claims but of the insurance industry in your area. The national firms don’t always have a local agent to assist in matters locally and it is good to have.
Does the professional liability insurance policy have a hammer clause? This means that your firm would not have a choice on whether a claim is settled or not, the insurance company would make the final decision on a claim settlement.
Are there exclusions for specific project types? Review the policy, in full, to determine if there are any exclusions for project types. Other exclusions may include mold and asbestos.
If your firm has any questions with regards choosing a professional liability policy please call, or email, your Professional Underwriter agent for assistance.