Two PLI Policy Options Architects and Engineers Should Consider


architects & engineers professional liability insurance

Professional liability insurance is crucial for professionals in fields such as architecture and engineering. However, it can be easy for people who have taken out basic architects & engineers professional liability insurance to forget that all policies are not created equally when it comes to protection and return on investment. For professionals who want to get the most from their policies, here are two options that may be worth adding.


First-Dollar Defense


Electing for first-dollar defense on a professional liability policy ensures that the policy deductible is only used toward paying damages. This means the insurer must put forward money to defend against any initial liability claims. This option essentially shields professionals from the costs of unfounded or unsubstantiated claims. The professional only ends up paying money toward the cost of any settlement reached.


Coverage for Contractors and Consultants


Architects and engineers may be held liable for errors or omissions on the part of consultants, contractors, temporary workers, and other people who are not directly affiliated with the firm. A typical architects & engineers professional liability insurance policy will not necessarily cover these people, but an enhanced policy can. This policy addition can be especially valuable for firms that outsource parts of their work or take on complex jobs requiring collaboration.


Exploring Other Policy Options


A discussion with an insurance agent can help an architect or engineer identify other policy additions that make sense for the type of work the firm takes on. Professionals who are hesitant to add to their policies should make sure to carefully weigh the potential costs of exposure against the known — and often minor — cost of expanding their insurance coverage.