Short answer
Online professional liability insurance for engineers may carry exclusions that don’t fit design work, such as condominium work or inspections.
Many online platforms insure hundreds of business types on similar forms, so details matter more for engineers and architects. Reading the exclusions, the definition of professional services and the limits against your contracts takes about 10 minutes and may prevent a surprise at claim time.
How do exclusions affect online professional liability insurance for engineers?
Buying insurance online is fast. You enter your zip code, pick a business type, answer a few screens and pay. Minutes later you have a certificate to send your client.
For many small businesses, that works well. Engineers and architects have a different exposure, because the policy has to fit professional work. Design firms often do better on a form written for design professionals, though forms and pricing vary by carrier.
Differences tend to show up in these areas:
- Project type exclusions. Some policies exclude condominiums, townhomes or other residential work. In some states, that work may account for a large share of claims against design firms.
- Inspection limits. Some policies exclude inspecting work you also designed, or limit inspection services.
- Definition of professional services. A narrow definition may leave out services you actually provide.
- Limits and deductibles. Low limits can look fine on a certificate and still fall short of a contract.
- Claims handling. Some design professional insurers use claims teams familiar with design disputes.
Online policies aren’t automatically a poor choice. The question is whether the form fits what your firm does.
Can a $10 million policy still say no?
A certificate can show impressive limits. If the policy excludes the work behind a claim, the limit may not help. Read the exclusions before you rely on the policy.
Example: a hypothetical condominium exclusion
A small civil engineering firm pays about $500 a year for a policy bought online. Condominium projects make up part of its work. When the firm finally reads the policy, it finds a condominium exclusion it never noticed, and nobody was available to explain it.
In this hypothetical, the firm asks an agent whether an endorsement could remove the exclusion or whether a different form makes more sense. Whether either option exists depends on policy terms, exclusions and underwriting.