Architect Liability Insurance
Professional liability insurance and general liability insurance are the most useful. The first, also known as professional indemnity insurance or errors and omissions insurance, covers professional negligence and other related lawsuits. The second takes care of bodily injury or property damage lawsuits.
Architect liability insurance isn’t required by law. There are no architect insurance requirements and all can practice their craft without getting insured. Nonetheless, it’s best if you get the minimum amount of general liability and architects PI insurance to:
Easily bid for contracts and close deals
Assure clients you have the countermeasure if something goes wrong
Gain the trust of clients
Satisfy with the requirements of mortgage and property rental or lease
So how much coverage do you need? Most who are in the real estate and other related practices get a $1 million general liability and professional insurance for architects.
Architect Professional Liability Insurance
Limits Of Professional Liability Insurance for Architects
| Value |
|---|
| Professional liability per occurrence limit | $1 million-$2 million |
| Professional liability aggregate limit | $1 million-$2 million |
| Deductible | $0-$10,000 |
Architect professional liability insurance is always included in the tailored protection for your line of work.
This policy grants a shield when a claim is filed because you committed or allegedly committed lapses while working for a client. You’ll find architects & engineers professional liability insurance useful when:
You were conducting an inspection and failed to make corrections even if the building didn’t follow your design
Your design have significant defects and errors which costed a ton of money for the client to correct
You gave an incomplete design to a client
You failed to finish and deliver the building design on time
The client accuses you of not following certain duties and responsibilities stated in the project contract
You inflated the cost estimates in order to get commission from a partner construction contractor
Architects and engineers professional liability insurance is underwritten as a claims-made policy or occurrence policy. Everytime you face a claim for professional negligence, breach of contract, violation of good faith and fair dealing, or missed deadlines, this insurance will cover:
Settlements
Compensation for punitive damages
Defense costs such as attorney fees, investigation fees, court filing fees, etc.
Court judgments
Architects errors and omissions (E&O) insurance is offered as a stand-alone policy. However, some insurance companies underwrite this as part of their general liability insurance.
General Liability Insurance for Architects
Limits of General Liability Insurance for Architects
| Value |
|---|
| General liability per occurrence limit | $300,000-$2 million |
| General liability aggregate limit | $300,000-$2 million |
| Products and completed operations coverage limit | $1 million-$2 million |
| Advertising injury coverage limit | $1 million |
| Rented premises liability coverage limit | $250,000 |
| Medical payments coverage limit | $5,000-$15,000 |
| Deductible | $0-$2,500 |
Aside from architects PII insurance, you also need general liability insurance. General liability insurance is a requirement for bidding projects, renting commercial spaces, and getting a mortgage.
General liability insurance for architectural designers grants a shield when a client, independent contractor, delivery persons, and other third parties file a claim for bodily injury or property damage against you. Use this insurance when:
You hired independent carpenters for a housing project. One of them gets injured at the workplace and demands compensation
Your office’s floor has just been mopped. A client entered and slipped, resulting in a broken hip
Your design was faulty. The structure crashed and surrounding buildings got damaged, not to mention people also got injured. A claim is filed that demands you cover the aftermath of the accident
Claims for bodily injuries and property damage are expensive, and general liability insurance will take care of these costs:
You get the best protection by having general liability insurance aside from architects errors and omissions insurance. These policies compliment well and cover each other’s gaps.
Additional Coverage Included In General Liability Insurance for Architects
Your general liability insurance doesn’t only cover claims for bodily injuries. It will offer these coverages as an additional layer of protection:
Advertising Injury Coverage
General liability insurance comes with advertising injury coverage. It will protect you against copyright infringement claims.
If you’re sued for copying another architect’s work or using it without prior attributions, advertising injury coverage will cover settlements and defense costs.
Moreover, this additional coverage in general liability insurance also grants a shield against claims for slander or libel.
Products And Completed Operations Coverage
The products and completed operations coverage of general liability insurance will cover expenses if a client files a claim after you completed a project.
Rented Premises Liability Coverage
Anything that happens to a rented space falls on your shoulder. This is why general liability insurance comes with rented premises liability coverage. It will reimburse the losses of the landlord if the space you’re renting is damaged by fire.
Commercial Property Insurance for Architects
Limits Of Commercial Property Insurance for Architects
| Value |
|---|
| Building coverage limit | $110,000-$500,000 |
| Building contents coverage limit | $15,000-$200,000 |
| Outdoor installations (signs, antennas, fences, etc.) | $2,500 |
| Money and securities | $2,500 |
| Employee dishonesty coverage | $5,000 |
| Key and lock loss coverage limit | $1,000 |
Commercial property insurance protects your office and other business property.
Most insurance companies allow you to insure an office at home, a commercial condo, or dedicated building. Some are less lenient and don't offer commercial property insurance if you’re working in a home office or at a rented/leased office.
It’s easy to understand how commercial property insurance for architectural technicians work. Use this to recover losses and resume operations when the office is destroyed or damaged by:
Fire
Theft
Vandalism
Riot
Civil commotion
Malicious mischief
Sinkhole collapse
Volcanic action
Rain
Winds
Snow
Hail
Impact
Vehicle
Aircraft
Sprinkler leakage
Commercial property insurance provides automatic coverage to the contents of your office. You can use this business insurance for architects to recover losses in case distance lasers, cameras, laptops, desktops, 3D printers, HVAC, and other valuables become lost or damaged due to the perils above.
Commercial Auto Insurance for Architects
Limits of Commercial Auto Insurance for Architects
| Value |
|---|
| Auto liability coverage limit (minimum) | $25,000 per bodily injury
$50,000 per accident
$15,000 per property damage |
| Uninsured motorist coverage limit (minimum) | $25,000 per bodily injury
$50,000 per accident |
| Underinsured motorist coverage limit (minimum) | $25,000 per bodily injury
$50,000 per accident |
| Medical payments/personal injury protection coverage limit | $500-$5,000 per person |
| Rental reimbursement coverage limit | $30-$50 per day
$900-$1,500 max |
| Coverage limit for trailers and other equipment attached to the vehicle | $2,000 |
Commercial auto insurance takes care of costs if an accident happens while you’re driving to meet a client, inspect a project site, or join a seminar. It will also mitigate the cost of vehicle maintenance. A typical commercial auto policy in building designer insurance offers these:
Auto Liability Coverage
Commercial auto insurance has auto liability coverage. And it will account for these expenses if you cause a vehicular accident:
Medical treatment of the victims
Funeral costs of the victims
Property damage of the victims
Defense costs if the victims decide to sue
Court judgments
Physical Damage Coverage
The physical damage coverage of commercial auto insurance takes care of vehicle maintenance expenses. You get this as a comprehensive policy or collision policy.
Comprehensive physical damage coverage will cover expenses if your vehicle is damaged by fire, theft, vandalism, weather, and other covered perils.
Collision physical damage coverage will cover repair expenses if your commercial vehicle got damaged because of a vehicular accident.
Note that both types of physical damage coverage doesn’t grant protection against rollovers and normal wear and tear.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage will cover your medical treatment when the driver who caused the vehicular accident isn’t insured or doesn’t have enough auto liability insurance. Coverage also applies to your passengers.
Medical Payments and Personal Injury Protection Coverage
Medical payments and personal injury protection coverage takes care of your medical treatment and the passenger’s medical treatment when:
Personal injury protection coverage is more comprehensive than medical payments coverage, because it also takes care of lost wages, rehabilitation, medication, and hospitalization.
Rental Reimbursement Coverage
Rental reimbursement coverage will cover vehicle rental expenses or public transportation costs while mechanics are repairing the car you’re using for architecture work.
