Why Architects & Engineers Need Professional Liability Coverage

Why Architects & Engineers Need Professional Liability Coverage

Posted 11/04/2019

by Harvard Western Insurance in

As an engineer or architect, you work in a highly skilled, detail-oriented industry and are expected to provide quality design services that are free of errors or omissions. But let’s be honest, nobody’s perfect. Despite your expertise, knowledge and best intentions, the reality is that not all projects are error-free and eventually a mistake or misjudgment is bound to occur. The cost of defending yourself in court can be huge, not to mention the restitution costs if you’re found at fault.

What does it cover?

A professional liability policy will cover the cost of defending you or your company in court against a statement of claim served against you alleging a wrongful act. It will also pay any monetary damages awarded to the claimant by the court due to an error or omission on your part (up to the policy coverage limit). A professional liability policy is meant to be there for you in the event you have an insured claim brought against you, where dealing with it alone could potentially cripple your business financially.

What to Look for in a Policy?

Though you may specialize in certain areas, you likely handle a variety of projects and services, and you’ll want your policy to reflect that. Depending on your needs, you may want to consider these components when choosing a policy:

  • Pollution liability that covers sudden, accidental and gradual pollution
  • Specific coverage for breach of a client contract
  • Full civil liability coverage (not just negligence)
  • Specific coverage for breach of intellectual property rights
  • Reimbursement of costs incurred to help reduce or avoid a claim
  • Punitive and exemplary damages coverage
  • Virus and hacking liability coverage

You’re an expert in your field because you worked long and hard to develop your skills. Let our experienced advisors help you analyze and evaluate your unique risks, and develop a plan and policy together.

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