Knowing the Difference Between Professional Liability and General Liability Coverage

As a responsible owner or principal of an architecture practice, you understand the need for general liability insurance. You have a people-based, client-facing business that involves the presence of others. Your general liability policy covers slips and trips as well as property damage. As a principal, you understand the need to create quality plans that are detailed, complete, correct, and buildable. An error or omission in your plans can have serious, even disastrous results. If a client or third-party files a lawsuit based on a problem in your plans, are you covered?

Defining Professional Liability Coverage

Your general liability insurance won’t protect your business for damages or losses associated with your design deliverables or other work product. Professional liability insurance is expressly for protecting you and your firm from claims that arise from errors and omissions in your deliverables. It is also commonly known as Errors and Omissions Insurance. This crucial coverage is often required by clients to cover common architect risks including mistakes, oversights, and negligence.

Finding the Right Insurer

Professional liability insurance is specific to the type of work your company does, so it’s best to find an insurer that specializes in this type of coverage. Your firm’s particular needs will also vary so it’s important to choose an insurer that can bring underwriting solutions that are appropriate for your company. From legal costs to actual policy limits and more, you can work in confidence, knowing that your work product is covered.