A Professional Liability Update
Architects and engineers have unique exposures. If they don’t perform to a set of standards they are at risk of being sued and have the possibility of loss of reputation. This is where Architects and Engineers (A&E) errors and omission insurance can help.
A&E Insurance covers liability for alleged or actual damages that result from the performance of professional services. All design professionals including residential and commercial architects, design/build architects, engineers, landscape designers, and specialty construction consultants, should consider professional liability insurance.
Here are a few actual claims
An architect firm was hired to design an HVAC system in a school. The design was discovered to have a flaw that caused exhaust to be brought back into the building. The resulting damages and legal fees totaled over $1,500,000.
An A&E firm designed a 55-unit apartment complex. Three months after completion there was water damage to 25 units totaling $90,000. It was determined the A&E firm’s window frame design was incorrect and the firm was held responsible for all damages. The A&E firm incurred over $110,000 of expenses in replacing windows and related damage.
There are things A&E firms can do to minimize risks including:
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12/30/2019 11:21:53 am
It makes sense why architects and engineers need this insurance. It would be great to get some if I had this type of business. Insurance is great to protect you and others.
2/23/2022 10:53:53 pm
Understandable. Always make sure your client knows what services they are getting and what you will not be able to provide them.
3/17/2022 11:29:34 pm
All design professionals including residential and commercial architects, design/build architects, engineers, landscape designers, and specialty construction consultants, should consider professional liability insurance.
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