Many prudent companies in these litigious times are seeing the wisdom of liability insurance for small business – it provides protection from a head-spinning array of potential law suits rightly or wrongly brought. As an architect, you’re subject to all those along with some special types of claims that come with your profession. You need professional liability insurance for architects.
Don’t mistake professional liability insurance for architects with commercial general liability, which provides coverage for the sort of on-the-job accidents and property loss or damages that can happen to any company. Your commercial general liability policy probably doesn’t include any coverage for professional accounts liability.
Professional liability insurance for architects is more like malpractice insurance for architects. It covers you and your firm and your employees from law suits claiming errors, omissions or acts of negligence specifically related to the performance of your architectural service. What you might not realize is that those claims and your coverage extend to contractors and others hired to work on a project by you. Or that you can be sued for negligence because of a delay in construction or an incorrect estimate. And hey, you don’t even need to be the architect of record or even build anything. Even feasibility studies and plans can be considered cause for negligence claims.
If you’re still weighing the cost of malpractice insurance for architects against the benefit of having professional liability coverage, consider this: the number of liability claims being brought against architects has been on the uptick for over a decade and the majority of claims against small firms have come from residential projects. Compared to the legal fees and resources you’ll have to devote just to defend yourself against a frivolous claim, the cost of liability insurance for architects is small.
Ready to shop for architects business liability insurance quotes? Here are some of the considerations that may be used to determine your professional liability insurance premium:
• Your annual billings
• The types of projects your or your firm primarily deal with. Certain types of projects have a higher number of claims against them or more injuries associated with construction. And if you personally do a lot of custom-build work, you’re probably going to need a separate design-build insurance policy.
• The number of claims against your firm will obviously impact your architects business liability insurance quotes
• Internal training programs relative to professional liability can bring premiums down, especially if they’re documented.