Understanding Claims-Made Professional Liability Insurance

As an architect, you are expected to produce error-free work. However, this doesn’t always happen and even a minor mistake could end up costing your firm thousands if you aren’t protected with errors and omissions for architects insurance. When you protect your business with a professional liability policy, it will likely be provided on a claims-made basis.

 

How Does These Policies Work?

 

When you have claims-made coverage, you must have a professional liability policy in place when an error is made and when you file a claim. Many design professionals make the mistake of obtaining a liability policy before they start a large project and then cancelling it once it is finished. This often results in deep financial trouble because they are no longer protected when their client chooses to file a lawsuit against them. Due to this, it’s best to always carry errors and omissions for architects insurance, even if you are in-between large projects.

 

What Do You Do if You Have to Cancel Your Policy?

 

If you do need to cancel your errors and omissions policy, you may be able to obtain a basic plan with limited coverage. During the amount of time stated on this policy, you then are able to make claims based on any incidents that occurred before you cancelled your coverage. However, you should speak with your insurance provider before cancelling your policy to find out what options are available to you.