Architects & Engineers Coverage Guide
A&E firms carry the longest tail liability in professional services — design defects can surface a decade later. Standard GL excludes professional design work, so professional liability (sometimes called design E&O) is non-negotiable.
Critical Coverage
Professional Liability (E&O)
Covers claims of negligence or mistakes in professional services
What it covers
Design defect claims, code-compliance disputes, scope creep liability, project delay damages — the longest-tail professional liability in any service business.
Common misconception
A&E firms think E&O is just for big firms. Even sole-practitioner architects can face $1M+ design-defect claims years after project completion.
What it does NOT cover
Intentional misrepresentation. Express warranties beyond standard. Construction means/methods (contractor's domain).
The gap — what happens without it
Eight years post-completion, a structural engineer is named in suit when a parking garage shows premature cracking. Defense alone is $200K; settlement is $850K. E&O pays.
What drives your premium
Annual revenue, project types (high-rise, hospital, commercial = highest), licensed professionals, prior claims, contract terms (limit-of-liability clauses lower premium)
Endorsements to ask about
Prior acts. Project-specific (PSPL) for major projects. Pollution sub-limit (LEED projects).
Important Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Premises liability, third-party injury at job sites during construction admin visits, advertising injury.
Common misconception
A&E firms working remotely think they don't need GL — but contracts and licensing boards routinely require it.
What it does NOT cover
Professional services. Cyber.
The gap — what happens without it
An A&E principal slips on a wet floor at a construction site visit and injures the GC's superintendent — $30K claim against the firm. GL pays.
What drives your premium
Revenue, employees, project visits
Endorsements to ask about
Hired/non-owned auto. Site-visit coverage explicit.
Cyber Liability
Covers data breaches, ransomware, and digital threats
What it covers
Breach response, ransomware, BIM/CAD file ransom recovery, third-party claims from clients whose project data leaks.
Common misconception
BIM and CAD files are valuable IP — and ransomware operators know it. Recovery without backups can be catastrophic.
What it does NOT cover
Unencrypted devices. Unpatched known vulnerabilities.
The gap — what happens without it
Ransomware encrypts the firm's CAD/BIM repository. Recovery, notification, and client claims total $290K. Cyber pays.
What drives your premium
Records, MFA, employees, claims
Endorsements to ask about
Funds-transfer fraud. Reputation/PR.
Employment Practices Liability (EPLI)
Covers wrongful termination, discrimination, and harassment claims
What it covers
Discrimination, wrongful termination, harassment from employees.
Common misconception
Mid-size A&E firms have specific EPLI exposure due to long careers and seniority disputes.
What it does NOT cover
Wage/hour. WARN.
The gap — what happens without it
Senior project architect alleges age discrimination after termination. Defense + settlement: $130K. EPLI pays.
What drives your premium
Employees, state, claims
Endorsements to ask about
Wage/hour. Third-party.
Situational Coverage
Directors & Officers (D&O)
Covers personal liability of company leadership
What it covers
Personal liability of officers in firms with outside investors, ESOPs, or partner disputes.
Common misconception
Partner disputes are a leading source of D&O claims at A&E firms.
What it does NOT cover
Fraud. E&O exposures.
The gap — what happens without it
Departing partner sues remaining principals for buyout dispute — defense $90K. D&O pays.
What drives your premium
Ownership structure, claims
Endorsements to ask about
Entity coverage. EPLI follow.
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.