How to Select the Best Architects & Engineers Professional Liability Insurance Policy
What is Architects & Engineers Professional Liability Insurance (A&E)?
Architects & Engineers (A&E) insurance covers alleged errors resulting from the insureds rendering or failure to render professional services that results in bodily injury or property damage. A&E is also available for Land Surveyors and Construction Managers.
Why does an A&E firm need Professional Liability Insurance (E&O)?
The question is not “Do they need Architects & Engineers Professional Liability Insurance?” It should be, “What are the best insurance companies that provide coverage for Architects & Engineers?” When it comes to this profession, every company involved in a project will be named in a lawsuit regardless of fault – so policy premium should not be the primary concern.
Present insurance quotes that provide the proper coverage that will allow your clients to sleep comfortably at night. Offer higher limits to protect them from costly claims. Regardless, if the insured was at fault or not, legal fees & payouts can quickly add up, often totaling up to $1,000,000 or higher.
Aren’t all policies the same? NO!
A Sample of Coverages Not Included in Every Policy:
- Environmental, pollution, asbestos, mold, technology, media and advertising, or cyber claims
- Supplemental payments for legal fees and expenses responding to an administrative action by a government agency under the Occupational Safety and Health Act (OSHA), the Fair Housing Act (FHA), or the Americans with Disabilities Act of 1990 (ADA)
- Pre claims assistance and contract review
- Aggregate deductible – in case you have multiple claims in one year
- Deductible credit for resolving a claim through mediation
- Disciplinary proceedings reimbursement
- Loss of earnings as a result of attending arbitration proceedings, mediation meetings, trial proceedings, depositions or hearings
Suggestions For Your Clients to Help in Preventing Claims:
- Select an insurance company that offers free risk management services and unlimited contract reviews.
- Have an attorney or your insurance company review your contracts to see if you have a tight hold harmless clause.
- Prior to engaging into a new client contract, have your insurance company review and make changes to the contract to help protect you from claims.
- Avoid offering opinions on a project when possible – easier said than done, but offering an opinion is a sure way to be held liable.
The Right Wholesale Partner for this Type of Insurance, Makes all the Difference
To increase your chance of a sale, work with a wholesale broker that is a specialist in A&E. Wholesalers have access to many insurance companies that retail insurance brokers don’t have access to. They have experience with A&E claims and will know the coverages that you’ll need to recommend to best protect the A&E firm. A good wholesale broker will know what to look for and can present enhancements that you didn’t know were available. A good wholesale broker will present you with solutions tailored for your risk, winning you the business.
About the Author
Anthony Bottone is a specialist in larger and hard to place Architects & Engineers risks. He provides solutions to retail insurance agents on difficult professional (E&O), management (D&O/EPL) and cyber liability insurance risks. Anthony can be reached at firstname.lastname@example.org.