Project Professional Liability
Project Professional Liability insurance guarantees that coverage for the entire design team is available now and for a specific length of time into the future. Without it, this isn’t necessarily so.
With the “practice” policies that firms routinely purchase, coverage limits are for claims reported during the year that policy is in effect. That means that claims may be made against today’s policy for design work done in the past and that today’s limits may be used to pay those claim costs—which means you may not have the coverage you think you have.
Savvy owners and designers are looking at the need for protection in future years for design work being done today. Opting for Project Insurance guarantees coverage on a specific project for a time period you select. Answers to common questions about Project Insurance follow.
- Who is using Project Insurance?
- How long and how much coverage?
- What about costs?
- Who can be covered?
- What about certificates of insurance?
- Get a coverage indication.
More and more government agencies, corporations, developers and design professionals agree that project insurance makes sense. Project Insurance offers protection that can be tailored to the interests of everyone participating in the project. And just that knowledge can help everyone work together more effectively.
Project Insurance is flexible. Each policy is custom designed for the project it covers – and can even accommodate special requirements you may believe are unavailable.
Project policies also accommodate projects of differing scope and size, such as:
- Commercial/industrial buildings
- Airport terminals
- Correctional facilities
- Waste water treatment facilities
- Police Stations
You choose the length and amount of coverage you need for the job.
The coverage period can begin with design – or when construction starts. It can extend from 3 to 7 years after construction has ended. Either way, the design work is covered. Plus, coverage is guaranteed. The policy cannot be canceled unless it’s not paid for, there’s been a breach in policy conditions or there has been misrepresentation or concealment on the application.
You can choose limits up to $5 million, or even more if necessary. And, with Project Insurance protecting all members of the project design team, coverage is not dependent on the practice policies of the individual firms.
Project Insurance is priced for the specific project. A guaranteed premium rate is set per thousand dollars of construction cost. If construction costs go up or down, the premium may follow. But the original rate will always be the same, making premiums easy to calculate at any time.
Every design professional on the job can be adequately covered with Project Insurance – even those who are underinsured or uninsured. This gives owners and the prime professional more flexibility in choosing consultants.
There’s more to maintaining insurance protection than just collecting certificates of insurance. Sometimes design professional firms decide not to renew their policies for the following year, they reduce their limits – or their limits are reduced by claims. Sometimes policies exclude from coverage some of the work the design firm has contracted to do.
The most common failing, though, is that claims-made coverage must be in force when the problem arises to provide protection on the project. Project policies avoid these issues and give owners or prime professionals control after the project is completed – when design problems frequently appear.