The date when an insurance policy goes into effect.
Effective Date and Professional Liability Insurance for Architects & Engineers
What malpractice insurance is to attorneys and doctors, professional liability errors and omissions insurance is to engineers and architects. Essentially, it covers them for error or omissions on any services that they have provided. It is highly likely that something could be overlooked and this could affect the client. The effective date of the error would be relevant when it comes to the claim.
There are certain kinds of professionals that qualify for Errors & Omissions insurance. Generally, this is suitable for the bigger design firms. These would include drafting professionals, design build engineers, safety engineers, structural design consultants, engineers and architects.
These policies are designed specifically for every single design professional, engineer or architect. These professionals can be exposed to a multitude of risks and they need to be covered. They cover items that are generally not covered by other policies.
The kinds of areas that are covered under this are design build services, coverage for contractors that are independent, innocent insurance for dishonest acts, contingent bodily injury, and pollution and contaminates as well as structural defects.
Errors and omissions insurance looks after companies or private professionals in case a client deems the professional negligent in the performing of his or her duties. It could also be that the desired outcome was not achieved. It may also be referred to as professional liability cover. This cover also covers defense costs, judgments and settlements. It may be found that the allegations have no grounds. A lot of money is required to fight these kinds of lawsuits. The costs can be so high that the force smaller companies to shut down. The effective date of the insurance policy is of utmost importance in these matters.