I was speaking with an architect a few weeks ago and mentioned that, as a consultant, we carry professional liability (“errors and omissions” or E&O) coverage for our design services.  We see this as a tangible benefit to our clients and potential clients.  Why?  And what does it mean to you?

In very general terms, a professional liability policy covers us–and our clients–for damages (economic or bodily injury) that are incurred as a direct result of the performance of our specific design consultation services.  Our policy is much the same as that issued to a licensed design professional–an architect or engineer.  It’s important that all of the design professionals involved in a building carry this coverage.  The major reason why is buried in our commercial insurance policy, which is likely very typical in that it excludes liability from professional design services.

One requirement of our professional liability policy that is, again, likely very typical: we are required to ensure that our design subcontractors carry their own E&O coverage.  The implication of this is that an architect or engineer that hires us as a designer should be requiring this coverage from us, as well–it’s likely to be a requirement on their policy as well as, we think, a generally good idea to protect both themselves and the end client.