Risks Impacting Architects & Engineers

Insurance coverage needs for Architects & Engineers often differ from many other construction-related businesses. Design professionals frequently evaluate claims-made professional liability exposures, cyber risk, and the unique long-tail nature of design-related claims.
 

Professional Liability (E&O):
A core component of many Architect or Engineering firms’ insurance programs, Professional Liability coverage generally addresses negligent acts, errors, or omissions in professional services including design, engineering, and construction administration activities, subject to policy terms and conditions. These policies are typically written on a claims-made basis, meaning the policy in effect when a claim is first made and reported typically responds.  
 

Commercial General Liability:
Commercial General Liability generally covers third-party bodily injury and property damage claims arising from premises, operations, and non-professional activities. This coverages typically does not respond to professional services exposures, so separate professional liability coverage is commonly considered.
 

Workers' Compensation & Employers' Liability:
Firms performing field observation or site visits should confirm that their workers’ compensation policy appropriately contemplates employees working at construction sites. Field personnel can face site hazards that are typically addressed through training and safety programs.
 

Cyber Liability: 
Given the increasing risk of cyber attacks and data security risks, cyber insurance may help address certain first-party exposures (such as ransomware response, business interruption, data recovery) and third-party exposures (such as privacy or network security claims), subject to policy terms and conditions. Design firms may hold sensitive client data and BIM files that may be targets for cyber criminals.
 

Project-Specific Professional Liability:
Project-specific policies may be issued for a single project's design services and can provide dedicated limits not shared with the firm's overarching program. This type of coverage is often required by owners on larger, more complex, or higher-profile projects.
 

Umbrella / Excess Liability:
Excess liability coverage may provide additional limits above certain underlying policies, such as General Liability, Auto Liability, and Employers’ Liability coverages, depending on the terms and conditions.  Some standard umbrella polices may not automatically apply over professional liability exposures, so firms often evaluate whether separate excess professional liability coverage is appropriate.

_{IMPORTANT NOTICE: The opinions and statements herein are intended for general informational purposes only and should not be viewed as a substitute for any legal, regulatory or other advice on any particular issue or for any particular reason.  The advice of a professional should always be obtained before purchasing any insurance product or service, and you should not rely on the information provided herein for the prevention or mitigation of risks or as a full and complete explanation of coverage under any insurance policy or as a full and complete explanation of terms and conditions of any services offered.  Statistics and data referenced in this report are derived from industry sources and may not reflect current conditions or be applicable to your specific situation. Insurance coverage is subject to the terms, conditions, limitations, and exclusions of the applicable policy, and availability may vary by jurisdiction. Readers should consult with qualified legal, insurance, and financial professionals before making any decisions based on the information in this report. Acrisure disclaims any liability for actions taken or not taken based on this report.}