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Insurance & Bondingaka: E&Oaka: design professional liability

Professional Liability

In Plain English

Insurance for professionals that covers them when a mistake in their work causes financial harm.

Definition

Professional liability insurance covers claims arising from a professional's failure to perform duties to the expected standard of care, including errors, omissions, and negligent acts. In construction, this coverage is essential for architects, engineers, project managers, and design-build contractors. Professional liability policies are typically written on a claims-made basis, meaning the policy in force when the claim is filed—rather than when the error occurred—provides coverage.

Example

An architect's professional liability policy covers the cost of redesigning a structural system after an error in the original drawings is discovered during construction.

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