Why Do I Need Insurance?

In many cases, design professionals like architects and engineers are contractually required to purchase professional liability coverage. But when coverage is not mandated by a contract, why should an architectural or engineering firm carry it?

When design professionals provide their services, the law states that they must act in accordance with the professional standard of care. In other words, each design professional must act just as any other design professional would when facing the same situation. If a design professional makes a mistake on the job and is faced with a lawsuit as a result, that professional could face significant defense costs as well as damage awards.

Professional liability coverage allows you to transfer this risk to an insurance company. You pay a premium so that, if a lawsuit is brought against you, the insurance company will not only pay out damage awards on a covered claim, but also pay your defense costs.

If you'd like to discuss your specific risks, you might want to refer to our broker locator in the left column and talk to an independent agent or broker in your area.

Step Two: Why Schinnerer?