The Basics On Professional Liability Insurance For Architects & Engineers
Investing in professional architect or engineers insurance is a great way to grow your business. While there are presently no laws that require your architecture or engineering firm to carry this insurance, many clients prefer to work with companies that do have access to this necessary level of protection. Investing in professional liability insurance is a great way to optimize your potential in your market without compromising your financial security.
This insurance is often referred to as Errors & Omissions insurance. It covers most of what falls outside of the realm of general liability insurance. General liability does not cover your professional services but rather offers protection at the base level of your operation. If a client enters your office and slips and falls, under general liability is where you would file this claim.
Errors and Omissions insurance offers protection for any errors that occur with the professional work that you do. Should a client suffer a loss due to a design flaw that was present in the documents provided by your company, this insurance would bolster you financially and prevent any massive monetary loss. This form of coverage works along the same premise as the malpractice insurance that is common to doctors and lawyers.
Because professional risks are not covered by general liability it is very important for architecture and engineering firms to seek out protection that covers the work that they do. While having both forms of insurance will protect both operations and professional services, it is important to know that Errors and Omissions policies often come with numerous exclusions, which may vary from insurer to insurer. In most cases these include issues that may arise relating to mold, asbestos, pollution and numerous other factors.
Becoming a solid performer in your field requires that you have the utmost in protection. A key factor in protecting your business is simply having the right insurance. General liability is not enough when there are significant risks involved with your finished product. Professional liability insurance will make your firm more marketable, and lend it the stability to weather any unforeseen storms.