Architects and Engineers Professional Liability
There are many dimensions to consider when selecting an Architects and Engineers (A&E) professional liability policy, and Intercorp can help choose the right balance of coverage features to maximize the value of an insured's premium dollars. Intercorp's familiarity with the coverage forms of A&E carriers means that we can help you choose the policies with the right policy language to avoid potential coverage issues when claims arise.
A&E exposures stem from the planning and design of buildings and structures, construction management and payment authorization. A&E policies are unique among professional liability exposures because they provide coverage for claims related to bodily injury and property damage as well as economic damages. A&E firms are responsible for the buildings and structures they design long after construction is complete, so maintaining the continuity of claims-made coverage is vitally important. Contractors Professional Liability policies are designed to handle design and construction management exposures for contractors with design build contracts, in-house design capabilities and vicarious professional liability exposures.
With A&E insurance, as with many types of insurance, the best offense is a good defense. Roughly half of all costs associated with A&E claims are related to defense costs. Smaller firms may want to add a first dollar defense endorsement to their policy, so that they do not pay any deductible for defense costs. Larger sophisticated firms may want to add tiered deductibles to their policies so that the deductible is reduced after the first two or three claims. Since their professional reputation is on the line, A&E firms insist upon a vigorous defense so it is important to consider claims handling practices and capabilities when selecting an A&E carrier. The top A&E insurance carriers often let firms pre-qualify their preferred counsel and offer risk management seminars, fast turnaround contract review, and pre-claims assistance at no charge.
In today's world, buildings are designed on computers instead of drafting tables, so cyber-risks are an important consideration when choosing an A&E policy. Some carriers offer endorsements that enhance a policy's response to technology glitches. A&E polices are written with both admitted carriers as well as in the excess and surplus marketplace. Consideration should be given to whether a firm's clients require a specific financial strength rating (for example, A or better) for the insuring company. Intercorp's knowledge of A&E carriers practices and policy forms will help you choose the right A&E policy.
Contact Intercorp to discuss your coverage needs and get an application.