When awarded a large-scale project, confronted with client concerns or simply ready to up their game, smart firms often decide to buy architects & engineers professional liability insurance.
This type of coverage serves as protection against lawsuits that allege negligence, omitted performance information or costly errors. Unlike commercial general liability that covers more typical accidents for most any sort of business, architects & engineers professional liability insurance covers claims that are often excluded from CGLs. They are specialized policies for particular companies.
Often, architects with small firms decide not to insure themselves in the false belief that their projects are relatively low-risk, so they have little to lose. However, a significant number of firms face liability claims every year. Contrary to what many people think, the benefits of liability insurance far outweigh the costs, even for small projects.
Among those benefits is the legal expense for fighting a suit, which can become quite large. Lawyers may be needed for a variety of tasks, including evidence gathering and offering advice on how to proceed. Even a relatively small claim can quickly bankrupt some firms.
Another excellent benefit that many insurance companies offer is risk management, including contract review and advice on minimizing the risk of liability.
Regardless of the size of the firm, architects & engineers professional liability insurance is one of the best ways to be prepared for any eventuality so that should the worst happen, the company can survive.