As an architect, your work involves bringing designs to life. From conception to realisation, as an architect, you participate in the process of creating an architectural structure which is going to exist for many years. Your architectural structure will be used by people for many years. Though, every architecture acts cautiously to meet client’s expectations, what if someone blames them for carelessness?
Architects can be sued for a professional negligence for a variety of reasons, like the following:
- Wrong use of materials
- Bad design (for instance, a house sustains water damage due to fault in design)
- Failure to complete the project on time
- Failure to complete the project within the budget
There is always a risk involved in the business, and therefore, it is indispensable to purchase architecture’s liability insurance. Whether you are a large architectural firm or a sole proprietor, architecture liability insurance is the necessary part of doing business.
What is Covered Under Architecture’s Liability Insurance?
Architecture’s liability insurance policy will cover architects up to the specific amount which they may become liable to pay if a claim is filed against them due to neglect, error or omission while discharging the professional duties. The policy covers you if any of your clients sues you and claims to incur losses by acting upon your services. Further, the insurance policy also provides coverage to architects for defence fees in case a lawsuit is filed. The extent of the settlement would depend on the sum insured of the policy.
Make sure to keep the following points into consideration while buying the Architecture’s Liability Insurance:
- Carefully read the policy document and understand exclusions, if any
- Ensure the coverage is sufficient to give you financial protection
In addition to the above, it is essential to know where you’re based. Whether you work from home or office, make sure you have architecture’s liability insurance that complies with your needs.
Read more: Who and What Is Covered Under the Directors and Officers Liability Insurance Policy
There are several types of add-ons which are available with the policy and thus, help in expanding the coverage. One of these additional covers is overseas litigation and design defect. You would have to pay extra to get these additional coverages.
What is not Covered Under the Policy?
While architecture’s liability insurance policy offers extensive coverage, there are several instances which are not covered under the policy, like:
- Criminal acts
- Wilful negligence
Finding the right Architecture’s Liability Insurance Policy
Many factors go into growing your business in today’s competitive world. One of the crucial factors that need to be considered is the protection against the legal claims for the specialised work you perform. Therefore, it is necessary to take the help of a leading corporate insurance advisor, like SecureNow to find and buy the right policy. Working with the right insurance policy can help in getting comprehensive protection against professional damages.
Also read: How Directors And Officers Liability Insurance Can Help You Through Distressed Times
Finding Architecture’s Liability Insurance quotes and buying the best policy is not an easy task. There are a few steps which need to be followed to ease the entire process:
- First, make sure you have thoroughly understood the different risks your company may face. It might include considering your net worth, the number of employees you have and the type of projects you take on in a year and your current insurance cover.
- Second, find reputed insurance companies with whom you can work. Consider taking the help of SecureNow to find the right Architecture’s Liability Insurance company.
- Thirds consider your budget. How much money you can spend on premium, should be considered while deciding the coverage of your policy.
Architecture’s Liability Insurance is like a safety net that protects an architect from incurring a hefty cost of a lawsuit. Even if no claim is made against the insurance policy, the premium paid on Architecture’s Liability Insurance is worth the security and peace of mind, which it gives.