New Jersey Professional Liability Insurance for Architects and Engineers

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We offer professional liability insurance, also known as errors and omissions (E&O) insurance, to New Jersey architects and engineers who work in all fields. Architects and engineers have a responsibility to both their client and the general public and must always exercise the proper degree of care that a prudent design professional would exercise under the same circumstances. When working on a project, New Jersey architects and engineers can manage their risk by reviewing their calculations and having a peer review or quality control review of their calculations or drawings done before submitting them to their client.

What rating factors impact the premium paid by New Jersey architects and engineers?

There are many rating factors which are considered in the calculation of the premium of a professional liability insurance policy for New Jersey architects and engineers. The basic exposure base is the gross revenue which means that the higher the revenue, the higher the premium. The selected policy limits and deductible will also have a direct impact on the premium.

Another important rating factor related to the types of services provided by the firm. As an example, geotechnical and structural engineers tend to have a significantly higher premium than electrical engineers in New Jersey. Also, architects who perform project planning and landscape design usually have a lower premium than design architects.

Another rating factor which impacts the calculation of the premium is the type of project. New Jersey architects and engineers who work on less risky projects such as schools and shopping centers will usually have a lower premium than those who work on tunnels and pipelines. Other rating factors include the claim experience, loss prevention program, territory, and others.

What coverage is provided by professional liability insurance in New Jersey?

Professional liability insurance protects New Jersey architects and engineers against claims made in connection with a negligent act, error or omission committed in the performance of professional services. The policy provides for the payment of damages that the insured becomes legally obligated to pay as a result of a covered claim as well as for claim expenses, including defense costs. New Jersey architects and engineers should be aware that professional liability insurance policies include multiple exclusions, such as:

• Failure to obtain or maintain any type of insurance
• Claims made by an insured against another insured
• Dishonest, fraudulent, criminal, malicious or intentional acts
• Liabilities assumed from another party
• Express warranties or guarantees
• Fines and penalties

Many other exclusions and limitations are included in professional liability insurance policies. Architects and engineers in New Jersey should carefully review their policy to ensure that adequate coverage is provided.