What Should Professional Liability Look Like for Architects and Engineers?

Architects and engineers are highly trained professionals who provide advice and services to individuals, businesses, and governments about a very wide variety of issues related to building, design, and construction.

Engineers are typically involved with larger structures including bridges, large buildings, tunnels, dams, reservoirs, aqueducts, and beyond. Similarly, architects design structures such as houses, apartment complexes, shopping centers, office buildings, and factories, to name a few. Working on any of these projects involves high levels of risk, so it is wise to invest in liability insurance. Architects' or engineers' professional liability insurance protects individuals or firms against certain types of client lawsuits.

While many believe the majority of client lawsuits for architects and engineers come from the actual construction of a certain project, providing professional advice increases the chance of being sued. Relying on complicated recommendations made by architects and engineers, clients may make expensive decisions. When things go wrong, a client may file a claim for losses they believe is the responsibility of the individual or firm they hired to complete their desired architectural and/or engineering project.

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, a failure to meet client performance expectations, and many more.

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, construction manager, etc). In any case, the service description must be broad enough to include all 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, plans, or schedules on time, or involving an architect's or engineer's dishonest acts.

If you have further questions regarding Architects or Engineers Professional Liability insurance, contact Williams Insurance. We have over 80 years of experience, at your service.