As professionals in the fields of architecture, engineering, and related fields, you can have big responsibilities on your hands and, unfortunately, mistakes happen.  Things go wrong or you’re just left holding the bag for the negligence of others.  These can all lead to a bad situation for your business unless you have the right insurance coverages in place.

What Special Insurance Coverages do Architects and Engineers Need?

Aside from the standard insurance that all businesses need, such as a business owner’s policy (BOP), commercial auto insurance, and workers’ compensation insurance, architects and engineers have somewhat unique needs for insurance coverage that may include the following specialized insurance products.

Professional Liability for Architects and Engineers

Sometimes referred to as Errors and Omissions (E&O) Insurance, professional liability coverage for architects and engineers is equally as important as insurance for the building where your firm is located.  Without errors and omissions coverage, Architecture and Engineering businesses can incur substantial costs when things go wrong.

The first thing you need to know is that general liability insurance does not extend to professional liability. This means that without professional liability insurance, you’re on your own to cover the costs of defending your firm, protecting your reputation, and paying out any damages awarded.

There are many situations where professional liability insurance is a must. These are a few examples of when professional liability coverage for architects and engineers is an asset.

• Failure to deliver as promised. Missed deadlines are relatively common in this line of business. Many projects rely on each moving part to complete its function before the next one can begin. Delays at the architectural or engineering stages can delay entire products resulting in extra living expenses for homeowners and thousands, hundreds of thousands, and even millions of dollars in lost revenue for businesses that are going to want to recoup those losses.

• Getting it wrong. You simply did not get the specs right or you created a product that is undesirable to or unusable by the client.

• Leaving out things. This generally happens when changes are requested or there are a long list of extras and add-ons clients want. Leaving things out of the design or plan can cost needless delays or even not be discovered until the project is complete.

Joint Venture Coverage

Partnerships and joint ventures are quite common among architects and engineers. When the business you partner with doesn’t perform as expected, it can leave you on the hook for liabilities related to the conduct of business partners and other project participants. This insurance coverage serves to shield you from some of the expenses related to legal defense as well as any damages awarded or settlements reaches.

Pollution Liability Insurance

This is coverage for liability related to pollution incidents as a result of work performed by your firm. With the shift of businesses today focusing more and more on sustainability and environmental responsibility, it is wise to consider an investment in pollution liability insurance for all fields related to engineering and architecture.

Who Needs Architects and Engineers Insurance?

There are many industries and disciplines outside of architecture and engineering that may require similar coverages, including but not limited to the following:

• Aerial Mapping
• Building Inspectors
• Draftsmen
• Heating, Ventilation, and Air Conditioning
• Interior Designers
• Landscape Architects
• Project Managers

If you feel you may have similar insurance needs for your business, talk to Phoenix Insurance Group today.  Don’t wait until you’re facing a lawsuit to find out if you have the right kind of insurance protection.