Why Do Architects Need Professional Liability Coverage?

Why Do Architects Need Professional Liability Coverage?

Posted on: February 17, 2016 by Huntersure LLC.

The variety of risks that architects face varies from firm to firm. While most assume that errors and omissions insurance, otherwise known as professional liability, is unaffordable or unnecessary, this coverage is critical for architects. Not only will it provide coverage for all of the following exposures, Professional Liability for Architects will also provide some peace of mind.

Professional liability coverage should be purchased prior to anything going awry. For example, if a client has concerns with the work that was completed or if a high-risk, high-budget job was just contracted, this coverage is essential. Bear in mind that most big-budget companies will not do business with a firm that does not carry this insurance. This protection is needed to provide defense against legal fees, negligent acts and omissions in services provided.

What’s more, smaller firms are not immune to the pitfalls of litigation. While they may believe their firms are at a lesser risk than their corporate counterparts, professional liability coverage will provide the necessary financial assistance for any sized firm to cover legal costs, settlements, and more. Similarly, if a smaller company does not have the funds to pay out such extensive fees in the event of a claim against their business, the results could be devastating.

CAN/Schinnerer states that between 1994 and 2005, 15-21 claims were filed each year per 100 firms, leaving plenty of room for litigation. To combat this, Architectural Record states that the insurance company can provide a lawyer to help the architect gather and retain necessary documentation and avoid taking subsequent actions that could weaken the architect’s defense.

Claims arise from many different scenarios, the most common being from failure to comply with clients’ expectations or breaching a contract. While some client requests can be unrealistic, there is nothing stopping them from filing the claim anyway.

Our expert insurance providers will work with your clients to evaluate their risks, provide ongoing advice and consultation, and recommend appropriate coverages. At Huntersure, we offer specially designed programs for architecture firms that provides coverage for third party claims as a result of negligent acts, errors, performance, and services. For more information about our products and services, contact us today at (855) 585-6255.

Posted in: Architects/ Engineers blog