Architects & Engineers' Professional Liability Coverage

As an engineer or architect, you operate in a meticulous, skilled industry where you are expected to deliver high-quality design services free from errors or omissions. Even minor mistakes can lead to significant consequences. If a client believes that damages result from your oversight, they may sue your company. It’s crucial to protect yourself against this potentially crippling liability. The expenses involved in defending yourself in court can be substantial, not to mention the restitution costs if you are found liable. An architects & engineers' professional liability policy can cover these expenses, which might otherwise threaten your business's financial stability.

How Does a Policy Work?

An architects & engineers' professional liability policy covers the costs associated with defending you or your company in court, as well as any monetary damages awarded to the claimant due to an error or omission on your part. These policies are referred to as “claims-made" policies. This means that coverage is activated when a claim is filed and reported to the insurance provider, as it can often be difficult to pinpoint when the alleged error or omission occurred. Your coverage will extend back to the earliest date of your uninterrupted professional liability insurance. Typically, these policies are issued for a one-year term, with an annual premium and deductibles applied on a per-claim basis.

What To Look For In an Architects & Engineers' Professional Liability Policy?

While you may focus on specific areas, you likely manage a range of projects and services, and you'll want your policy to reflect that versatility. Consider these components when selecting a policy:

• Pollution liability covering sudden, accidental, and gradual pollution
• Specific coverage for breaches of client contracts
• Comprehensive civil liability coverage—not just for negligence
• Protection against breaches of intellectual property rights
• Reimbursement for costs incurred to mitigate or prevent a claim
• Coverage for punitive and exemplary damages
• Liability coverage for viruses and hacking incidents

What Is Not Covered

The following items are generally excluded from a professional liability policy:

• Unfair trade practices (e.g., hiring a competitor's employee and subsequently taking one of their clients)
• Non-payment of fees or invoices
• Willful or dishonest actions
  

Contact us today at Simpson-McCrady to learn more about how to protect yourself with a comprehensive professional liability policy.

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