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Architects and engineers are highly trained professionals who provide advice to individuals, businesses and governments about a very wide variety of issues related to building, design and construction. Further, engineers are typically involved with larger structures including bridges, huge buildings, tunnels, dams, reservoirs and aqueducts. Architects or Engineers Professional Liability insurance protects individuals or firms against certain types of client lawsuits.
Providing professional advice increases the chances of being sued. Persons make expensive decisions, often relying on complicated recommendations made by architects and engineers. When things go wrong, a client may file a claim for losses they believe are the responsibility of the individual or firm they hired for their architectural and/or engineering skills.
Architects or Engineers Professional Liability insurance is a non-standard line of business. Various specialty insurers offer their own coverage forms. Such policies respond to incidents involving allegations of wrongful, professional actions occurring anywhere in the world. Incidents may involve allegations of negligent supervision of a building project, an oversight in related financial matters or failure to meet client performance expectations.
Professional services are referred to in the coverage agreement of most architects and engineers policies and, typically, the declarations page describes the nature of the services performed (such as architect, landscaping specialist, engineer; land surveyor; or construction manager). In any case, the service description must be broad enough to include all of the services a given individual or firm may provide.
Most liability policies for architects and engineers include a right to approve an insurance company’s attempt to settle a claim. This provision exists because, often, claims have an impact on professional reputation. Therefore, professionals often insist on having a say on whether a claim should be settled or fought out in court.
Generally, such policies do not apply to certain claims such as those related to copyright infringement, loss due to the professional becoming bankrupt, failing to complete drawings, plan or schedules on-time, or involving an architect’s or engineer’s dishonest acts.
COPYRIGHT: Insurance Publishing Plus, Inc. 2015
All content provided in this blog is for informational purposes only. Topics discussed on this blog relate to insurance products and issues in a general application, and are not an offer of insurance, a guarantee of coverage, or applicable to specific and individual circumstances. Contact LG Insurance Agency for questions and information specific to your insurance needs.
