ProCorpSolutions+
Professional Liability
Project Specific Insurance |
|
Project insurance policies typically provide professional liability coverage to a group of Design Professionals for claims arising from a specific insured construction project. Coverage is in force for the construction period plus one or more years after completion of the project. This type of policy covers all design exposures for the life of the project under a single limit for a pre-set cost. For the purpose of claims arising from the covered project, the project policy normally replaces the Design Professional’s practice policies.
Project policies work best on larger, more complex projects where the design team comprises a lead design firm and a number of additional design specialists of varying sizes.
Project insurance offers a series of advantages to the project owner, members of the design team, and to underwriters. Owner’s benefits:
|
> |
All Design Professionals are covered for the project |
|
> |
The project has a dedicated limit of insurance, therefore there is no erosion of limits from claims arising from other projects |
|
> |
The cost of professional liability coverage for the design of the project is known at the start |
|
> |
The policy is in force beyond the completion of the project, so there is no need to ensure the annual renewal of the project Design Professionals’ practice policies |
|
> |
With this coverage approach the project owner is ensured that an adequate policy limit will be maintained for the life of the project, and that none of the design group’s policies will be non-renewed or eroded from claims on other projects |
For particularly complex projects, underwriters benefit from being able to specifically underwrite the project in question. However, the higher limits and long length of the policies provided offset this benefit. Therefore, project insurance can be difficult to obtain at a reasonable price, particularly for larger or more complex projects. |
