If clients need help regarding a building’s design, they put their trust in the expertise of the most competent architects available. Everything is ok as long as there are no errors or omissions, but in such a case, this could mean the architects will be placed in a sticky legal battle with their clients. To protect themselves from further financial and reputation damage, it is vital for architects to maintain proper professional liability insurance policies.
Having a professional liability insurance policy shows that an architectural firm really takes their business seriously. While the absence of such an insurance policy a major red flag to potential clients, a solid risk management plan is an indication that the architects understand that errors or omissions do occur and that they are prepared to handle any damages that may be related to their work. Errors and omissions are reason enough for their clients to file charges against them. Since undergoing a trial in itself is costly, architects can minimize financial losses by getting coverage. When they do lose the case, the damages may bring down an entire architectural firm. Luckily, insurers will answer to a large percentage (or even the entire amount) of the incurred damages.
In contrast to general liability insurance, architects’ professional liability insurance policies are tailored to suit the specific risks that architects meet during the completion of a project. These policies are designed to cater to those risks involved in the field of architectural concept and design. If the right policy is chosen, architects can rest assured that any damages that they may be penalized with will be minimized to avoid serious financial distress.