What is Architects & Engineers Liability Insurance?
Architects and Engineers (A&E) liability is a specific type of insurance geared towards insuring the liabilities of design professionals. The high level of technical skill and education creates a unique set of risks. Structural designs have the potential for error, and problems such as shifting or even collapse can occur. Errors in architectural design can create lengthy project delays costing all parties involved additional time and money to complete the job. Professional liability coverage for these risks can protect design firms from costly claims that would otherwise destroy their businesses.
Why Have Architects & Engineers Liability Insurance?
Architects and engineers have high, and sometimes impossible, expectations to live up to. Missed deadlines, design errors and even misunderstandings of directions can be disastrous. On top of the potential for errors, there are many laws such as the Americans with Disabilities Act (ADA) and the Occupational Safety and Health Acts (OSHA) that these professionals must adhere to. A violation of these, even accidental, can result in a lawsuit that could be financially damaging or even fatal to a business.
Architects & Engineers Claims Example
Richard, a civil engineer, provided design and construction oversight of an Interstate expansion project in northern Maine. During the construction, an auto accident occurred in the construction zone resulting in three deaths and two traumatic injuries. The surviving parties brought suit against Richard alleging his firm failed to recommend adequate signage in the construction zone creating unsafe driving conditions. The claim was settled for $1.2 million.
Coverage May Include
Provide insurance coverage to defend and indemnify design professionals against claims alleging negligence of errors and omissions in performance of professional services.
- Bodily injury / property damage: Contingent coverage provided in the event someone experiences bodily injury, damage to personal property or financial loss.
- Personal injury coverage: provides libel/slander protection during service, particularly relating to web content.
- Punitive damages: covered in the event additional damages awarded
- Joint venture coverage
- Pollution and mold coverage available
- Litigation management expertise eliminates the burden of claim management
- Defense for administrative proceedings or investigations of professional misconduct
- Coverage for claims resulting from covered professional internet services
- Adequate time to report claims to the carrier.
- Duty to defend policy
- True Contractor’s Pollution
- Free Contractual Review
- Cyber/Security Liability
- Defense Outside the Limits
- Project Specific Coverage
- Client Specific Coverage
- Softened Hammer Clause