Professional Liability

Professional liability insurance is the cornerstone of insurance coverage carried by engineering firms like yours. The threat of a liability claim is a significant business risk because such claims put the firm’s reputation at risk, and the cost to defend and resolve even frivolous claims can be substantial.

Engineering firms consist of professionals with specialized skill and knowledge providing services to a wide variety of industries. Claims alleging negligence in performance of those services is a significant business risk for any ACEC member firm. Professional liability insurance protects engineering firms from the financial impact of this risk. Coverage is available for typical services, such as engineering and surveying, but also many non-traditional services as well.

Greyling's extensive expertise will work to your advantage

It takes a knowledgeable broker such as Greyling to match your firm’s particular risks with the carrier best able to cost-effectively cover your risks with appropriate limits. Getting this balance wrong could significantly impact profitability and the long-term viability of your business.

Since professional liability insurance is highly specific to the needs of an individual firm, the ACEC BIT does not sponsor or endorse any one insurance company that provides this coverage. Instead, Greyling individually brokers professional liability coverage for each engineering firm in the BIT Program. As a result, the insurance placement experts at Greyling solicit professional liability options in order to provide an optimal balance of coverage terms, insurance limits, deductibles, premium, and risk management offerings. Greying has access to dozens of leading insurers and the expertise to negotiate the best coverage and pricing for your firm.

Did you know?

There are many factors to consider when purchasing professional liability insurance. Getting the details correct is important to providing the right protection at the right levels for your firm. Below are a few areas you may want to focus on when shopping for professional liability coverage:

Picking the right limit is as much an art as it is science.

You don’t want the insurance limits to be so large as to make your firm a target; on the other hand, you don’t want to go so low that the policy limits are exhausted by even a modest claim, putting the viability of your firm at risk. How can you determine your appropriate limit? Greyling can walk you through the process of deciding appropriate limits to make sure you have the coverage you need without overpaying.

Client requirements often dictate the amount of coverage your firm must carry per project.

Frequently, the project owner will specify required limits in the prime project contract. If you find that your firm’s limits are consistently lower than the limits required by your projects, you should likely be purchasing higher limits across the board.

If this is more of an occasional issue, you have two primary options: 1. You can increase your practice policy limits to meet the contract requirements. 2. You can purchase a “SALE” (a specific additional limits endorsement) or an “SPX” (a specific project excess endorsement) that applies to the specific project. If you find this is an issue faced by your firm, call Greyling to assist you in determining the best course of action.

Are You Covered for All Your Services?

What scope of services does your firm offer? Are you “plain vanilla,” or “rocky road”? Do you offer services outside of what an underwriter typically expects from an engineer? While most engineers’ operations fit well within the scope of professional services covered by their Professional Liability Insurance policies, if your firm is offering non-traditional services they may not be covered. Particularly in this economy, some may be looking to expand their scope of services as an additional source of revenue. Whether your firm has already ventured beyond the norm or is just now looking to do so, it’s important to be sure your Professional Liability Insurance coverage is broad enough to cover all the components of your business model.

The Professional Liability Insurance (PLI) application is an important tool to getting the right coverage.

PLI policies are based on the applications for coverage. The applications are sufficiently generic enough to be used by many different types of firms with services that may not all be quite the same. To be sure the underwriter really understands what your firm does and what its coverage needs are, it is important to provide a description of any unique or different services in a supplement to the application.

If your firm is providing anything beyond typical engineering services, be sure to describe in detail the types of services being performed and confirm that your quotation from your insurer specifically addresses whether it includes coverage for all of your services.