Architecture and Engineering Insurance

Professional liability:  This is the big one. There is a huge potential for injury and death due to an error in design that results in structural, mechanical, or process failure. There is also a massive liability with water damage and mold issues due to inadequate design. In order to prevent this exposure, ensure that all employees who design have appropriate accreditation and licensing and that they meet continuing education requirements. The biggest reason lawsuits happen is because of simple mistakes made by the firm. The best way to prevent this is by having someone check the work. Make sure that calculations are checked and designs are reviewed internally by senior personnel. All design specifications must be followed and inspections regularly conducted.

Document everything. Especially document all changes! They must be clearly marked and authorized by both the engineer/architect and the customer. Respond immediately and proactively to concerns expressed by clients both during and after the project is complete.

Property exposure: What would happen if all of your records, computers, and books were destroyed in a fire? All information should be kept in fireproof cabinets. Invest in cloud backup technology.

Inland marine exposures: Do you travel to and from clients' offices carrying your laptop, receivables, valuable papers, and records? First, you will need inland marine coverage. Second, be sure to make duplicate copies of all important information and keep them stored off site.

Premises liability exposure: Do you have clients that come to see you at your office location?  Off-site exposure includes having all employees submit to background checks and having a policy/procedure manual explaining how employees are to conduct themselves off site.

Automobile liability exposure: Do you and your employees use vehicles in performing their work? Here are few suggestions. First, do a motor vehicle record check on all employees before allowing them to drive company vehicles. Is there procedure/policy book for all drivers of company vehicles? Be sure to get a commercial auto policy to protect your accounting business.

Workers compensation exposure: Do you have employees performing repetitive tasks? Teach your employees how to reduce eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries. Invest in ergonomically designed workstations. Invest in a workers' comp insurance plan that will protect your employees and your business interests.