May 20, 2012
One of the fastest growing areas of professional liability insurance today is Architects and Engineers Professional Liability (A&E). A&E has a widely diverse liability coverage area that provides both defense and indemnity for claims that may arise out of specific disciplines within the A&E class of business for services provided by those professionals. From Design Build to Construction Management to Environmental, the proper liability insurance coverage and policy is crucial to the A&E professional. At Insurance Solutions, we understand the individual needs of each of our customers and work with our markets to provide the best professional liability coverage available.
ARCHITECTS & ENGINEERS PROFESSIONAL LIABILITY
An architect or engineer normally requires an insurance policy that provides protection for property damage claims, which most A&E insurance policies cover. However, some A&E firms, such as specialty engineering consultants, operate as specialty consultants and might not purchase an A&E policy form. Since many non-A&E professional liability policies exclude property damage claims, it is important to match the coverage with the specialty services provided by the architect or specialty engineer.
Specific coverage provisions are important for this coverage. Some professionals require coverage with special provisions to protect themselves from unique claims arising from their specialized services. For example, an engineer specializing in pollution control or clean up systems might require a modified pollution exclusion.
A&E professional liability is usually provided to a firm on an annual basis with a policy called a practice policy. The term "practice policy" is used because it covers an architects or engineers entire practice. Coverage is sometimes provided on a project basis rather than a firm or practice basis. Project coverage typically provides professional liability coverage to all professionals working on a particular project for claims arising from that project. Note that some practice policies have an exclusion for claims that are covered under a project policy.
MANUFACTURERS ERRORS & OMISSIONS
Manufacturing Errors & Omissions is typically referred to as Manufacturers E&O or Manufacturer's Professional Liability. A Manufacturers E&O Professional Liability insurance policy typically offers optional coverage for legal liability protection for damages incurred by a third party for the loss of use of tangible property that is not physically damaged resulting from the failure of the manufacturer's product to meet the level of quality, fitness or durability represented by the manufacturer.
Manufacturer's E&O covers any Wrongful Act arising out of the rendering or failure to render Manufacturer's Professional Services by the Insured or by any person for who the Named Insured is legally responsible. The policy then goes on to define Manufacturer's Professional Services to mean the design, development, manufacturing, selling and value added reselling of products by the Insured and including materials, parts and equipment provided by the Insured in connection with the Insured's products. Manufacture's Professional Services also means the Insured's advice, consultancy, design, plan, specification, formula, labeling, packing, instructions, for use warnings or similar but only insofar as provided in connection with or incorporated in any Product supplied by or on behalf of the Insured.
Contact us today for more information about the coverages available for Architects & Engineers.