Errors & Omissions Insurance for Architects and Engineers
Architects and engineers make a living building walls, but how secure are their assets? Precision is important in such a highly skilled industry, but despite best intentions, mistakes or misjudgments are bound to occur. Unfortunately, when they do, even the smallest error can have serious consequences. If you fail to protect your company against this liability, the consequences could be financially devastating.
Professional Liability Coverage
First and foremost, businesses can protect themselves with Professional Liability insurance coverage. In the event of a claim, this policy will cover the cost of defending one of your architects or engineers in court and any monetary damages awarded to the claimant if found at fault.
However, just purchasing coverage isn’t enough. You’ll also need to engage in effective risk management as well as report claims on first knowledge. Reporting and responding to claims immediately by developing an appropriate response plan can ensure you have the best chance of a favorable outcome.
Quick Response Plan
Your best risk management defense is to craft a very specific plan for responding to errors and omissions (E&O) claims. The following elements should be addressed in your plan:
- Report the claim to your insurer as soon as possible and in accordance with the requirements of your policy.
- Contact your legal counsel and request that they represent you in the claim.
- Visit the project site as soon as possible after the claim.
- Identify or hire an expert.
- Designate a claims management project team within your office.
- Inform any sub-consultants of the claim.
- Assemble necessary documents and stay organized.
Following these steps is just the beginning. Contact Assurance for more details on coverage or protection.
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