Insurance for Architects & Engineers
All professionals providing advice or design services have a liability exposure that, if not properly managed and insured, could have repercussions that would be financially crippling to a firm or its principal(s).
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Even the best Architects and Engineers need a Professional Liability Insurance broker who can identify and address the unique circumstances they face in their business, such as:
- The risk of negligent acts, errors and omissions;
- Risks arising from contractual undertakings, including indemnification and “hold harmless” clauses in agreements which may be excluded from insurance coverage;
- Failure of the policy to cover prior acts without any time limitation or “retroactive date”.
- Professional liability claims made against Architects and Engineers many years after a project has been completed;
There are nearly 38,000 architect and engineer businesses in Canada, and they all have similar exposures that can lead to costly settlements if they are found negligent. Ai Insurance Organization can help with that. Through our insurance partners, we’ve developed an insurance program exclusively for architects and engineers.
We have helped our architect and engineer clients with first-dollar coverage defense coverage, joint venture coverage, full retroactive coverage, loss of documents, pollution coverage, disciplinary coverage, defense costs outside the limit insured coverage, and even worldwide coverage.
Why Choose Ai Insurance organization?
20+ Years of National Experience and Expertise
The Breadth of Claims to Anticipate Client Needs
Tailored Insurance and Project Specific Placements
The Capacity to Write Firms of All Sizes
Errors and Omissions Insurance for architects and engineers
For over 20 years, the Ai Insurance Organization has specialized in the placement of Professional Liability Insurance (Errors & Omissions Insurance). Our Architects and Engineers team of experts operate as part of our Construction Services team, and together, we understand these industries very well.
We have the capacity to write policies for firms of all sizes, and we can say that over the years, we have developed the breadth of claims inventory to anticipate client needs.
Ai Insurance Organization has the trust and respect of underwriters and can negotiate comprehensive terms and conditions on behalf of clients with our exclusive programs.
Target Companies
- Architects
- Civil Engineers
- Construction Managers
- Designers
- Electrical Engineers
- Environmental Consultants
- Forensic Engineers
- Forensic Construction
- GeoEngineers
- HVAC
- Interior Designers
- Landscape Architects
- Land Surveyors
- LEED/Energy Consultants
- Mechanical Engineers
- Private Practice Architects
- Private Practice Engineers
- Project Manager
- Residential Condominiums
- Structural Engineers
- Soil Engineers
Why Professional Liability for Architects and Engineers?
Architect and engineering professionals take a number of years to attain their professional designation and build their reputation.
However, with the ever-increasing litigious nature of society, it is prudent for architects and engineering professionals to protect their reputation and assets against claims made by clients for negligent acts, errors or omissions in connection with the professional services they provide.
Professional Liability insurance provides protection against such allegations, even if they are frivolous.
Our Project Appetite
- Coverage for almost any project type.
- Coverage for all project delivery methods, including design build and public-private partnerships.
- Coverage tailored to firms of all sizes, from sole proprietorship to the largest national firms.
- Coverage for the entire design team for the entire construction period, with an extended reporting period post completion
- Coverage for a full range of design principles from the most benign to the most hazardous. No restricted classes.
Available Program Options
- Deductibles as low as $2,500 ($0 available on some classes)
- Premium starting at $1,500
- Worldwide coverage available
- Surety (bonds)
- Contingent Pollution Coverage available
- Contingent bodily injury and property damage
- General Liability package for some classes
- Personal Injury included
- Independent contractor coverage
- Duty to defend/pay on behalf of wording
Insurance for Architects
Product Substitution Issue
An architect was retained to design a residential property. Based on the contractor’s recommendation, the architect agreed to a product substitution for exterior fixtures even though the architect had no experience with this product. Years following occupancy, the owners issued a claim against the architect alleging that the product, as specified, failed and was intended specifically for interior use only. As the only design professional retained, the architect was held to a higher standard of care than the contractor and faced considerable exposure for the costs associated with repairs.
Negligent Design
An architect of a commercial development filed a lien against the property in an attempt to recover outstanding fees from the project owner. The owner issued a counterclaim alleging negligent design. The owner also brought the architect into a pre-existing lawsuit alleging that the architect failed to meet the terms of the construction management contract and directed work without written approval.
Unstable Site
A developer commenced an action against an architect when it was found, after review by the city’s planning committee, that two planned duplex units could not be built without major strengthening of the foundation. This process resulted in high costs due to the unstable nature of the site. The developer claimed for loss of land value, loss of profit and interest, plus delays in obtaining city approval, and non-completion of the project.
Insurance for Architects
Under-Designed Bridge
An engineer-approved design changed based on abutment foundation materials used in the building of a small bridge, which resulted in partial destruction of one abutment foundation after a heavy rainfall. The engineer was sued for the under-design of the bridge.
Insufficient Field Review
Changes to a civil engineer’s recommended excavation method for a damaged municipal drain resulted in drain collapse when inappropriate backfill processes were used. The engineer was sued by the municipality for insufficient field review where the backfill process could have been corrected in time to avoid damage.
Property Water Damage
The scope of a mechanical engineer’s field review responsibility was called into question when deficient piping was used in the development of a new residential building resulting in water damage to the property.
Design Errors
An engineer was held liable for design errors in the air-handling system for a new municipal library. The municipality sued for costs related to the repair of the mechanical system.
Claims Example
A design firm recently agreed to pay $550,000 to settle a lawsuit after a home it renovated experienced a fire that claimed the lives of five people.
In another case, an architect paid $325,000 to settle a lawsuit after a school he designed was completed for more than double the expected cost and two years behind schedule.
A designer misinterprets renderings done by the insured architect which leads to the ordering of costly materials that are not going to work for the project. The mutual client is upset and sues both for professional negligence and demands reimbursement for the useless materials. The architect does not believe this it is their fault but was named in the lawsuit and has a responsibility to appear in court. Their policy appoints counsel and defended the architect. Total defense and indemnity cost: $400,000
An HVAC engineer provided design and installation services for the construction of a new high school. Design errors created mold issues in the pool/gymnasium wing. The suit was brought against the engineer for mold remediation. Claim paid: $30,000
Negligent design on commercial new building resulting in failure to meet government safety requirement — settled at $140,000.
Failure to seek planning permission — settled at $16,000.
Inadequate supervision of renovation or construction works — settled at $180,000.
Negligent site layout — settled at $37,000
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