Tag: FAQ

Professional Liability Insurance Providers

By Lynda

Currently, there are a record number of insurance companies in the market that offer Professional Liability (E&O) policies for design professionals. This number fluctuates almost annually based on company interest, company loss ratios, and other dry, tedious factors which you probably don’t want to care about. And that’s okay. It is your insurance broker’s job to care about your insurance options.

So, who are the top Professional Liability insurance providers for architects and engineers?

a/e ProNet is a network of independent insurance brokers. This means we are not restricted by quotas and obligations dictated by any one insurance company. We are, therefore, free to represent the best interests of our clients and we do that by staying up to date on the Professional Liability programs available in your state.

Our organization is sponsored by several insurance companies with top-tier Professional Liability programs. The following is a list of our sponsors with links to the webpages which detail their respective Professional Liability insurance programs.

RLI Design Professionals
Travelers
Navigators Pro
Victor O. Schinnerer
The Hanover Insurance Group
Liberty International Underwriters
Beazley
Catlin
OneBeacon Professional Insurance
AllRisks
HCC

(Keep in mind that this is not an exhaustive list. There are more Professional Liability insurance programs out there, and a/e ProNet brokers work with many of those, as well.)

Each Professional Liability program is unique. Here are a few of the factors that vary between them:

  • Coverage modifying endorsements
  • Pricing models
  • Preferred disciplines (architects, civil engineers, geotechs, etc.)
  • Application requirements
  • Consideration of loss history (past claims)
  • Limits/Deductibles offered
  • Multi-year policy availability
  • Billing thresholds
  • Premium credits

If/when you have questions about which of these professional liability insurance providers would best meet your needs, contact your local a/e ProNet broker. We’re here to answer your questions.

What is Errors & Omissions insurance?

By Lynda

And why should an architect or engineer purchase Errors & Omissions insurance?

Also known as Professional Liability insurance or Malpractice insurance, an Errors & Omissions (E&O) insurance policy provides coverage to defend and indemnify a professional firm against claims alleging negligent acts, errors or omissions in the performance of professional services.

That’s a mouthful, but it sounds more complex than it is. Let’s break it down.

There are several reasons an architecture or engineering firm should purchase Professional Liability insurance:

Defense: Any project can give rise to a claim. Even if your firm employs an excellent risk management strategy, it is vulnerable to being named in a lawsuit. In that case, you’ll need to defend your firm against allegations of negligence. The cost of that defense can mount fast, even if you’re correct and your firm wasn’t in the wrong. A Professional Liability policy covers the cost of defense, along with the indemnity, as described below. (If you have the option to purchase a First Dollar Defense endorsement from your insurance company, you won’t be required to pay your deductible unless the insurance company ultimately pays a settlement payment on your behalf.)

Indemnity: In the event that your firm is found to have been negligent, and that the firm’s negligence gave rise to the claim, your Professional Liability policy will step in and cover your firm for the damages you’re legally obligated to pay, up to the policy limit. Note that, in most cases, defense costs erode the policy limit. Having adequate limits to cover both defense and indemnity is important.

Of course, another reason an architect or engineer should purchase Professional Liability insurance is that most project owners now require this coverage. If you’re in such a position for the first time, you probably have questions about the appropriate limits, deductibles, endorsements, etc., for your firm. The a/e ProNet website offers extensive resources prepared to answer your questions. As well, we can put you in contact with your local a/e ProNet broker. Our members are Professional Liability specialists with extensive experience working with design professionals. They are eager to help you navigate the process of purchasing Professional Liability coverage and appropriately protecting your firm.