Short answer
Most professional liability policies do not list project types. The professional services definition is usually broad, and the policy then narrows coverage through exclusions, endorsements and sublimits. If your policy has no condo exclusion or sublimit, condo work is generally treated like your other work, subject to the policy terms. If your project mix shifts toward condos or larger projects, expect it to show up in your renewal price. Whether a policy responds depends on its wording and the facts.
How the professional services definition fits into your policy
Most professional liability policies follow the same structure. Four parts do most of the work:
- The insuring agreement states what the insurer agrees to cover.
- The definitions explain key terms, including the professional services definition.
- The exclusions remove certain claims or activities.
- The endorsements add, change or restrict coverage for your specific policy.
Many readers expect to find a list of covered project types. Policies usually work the other way around. They start broad and narrow from there. A policy that does not mention condos has not said condos are covered or excluded. It simply has not addressed them in the definition.
The IRMI glossary offers general background on insurance terms. Your own wording controls.
Where restrictions hide
Restrictions on project types usually appear in three places:
- Condo exclusions, which remove coverage for claims tied to condominium projects
- Residential sublimits, which set a smaller limit for certain residential work
- Project-specific endorsements, which restrict or modify coverage for named project types
A sublimit is a smaller limit inside your policy limit for a specific type of work or claim. If your policy carries one, your coverage for that work may be lower than the main limit.
Check your declarations page and each endorsement. Our article on why condo projects raise your premium explains why carriers pay attention to this work.
Interiors, space planning and site observation
The professional services definition often contemplates the usual services for a given profession. For architects, that typically includes design, space planning and construction administration. For interior designers, it often includes space planning, finish selection and furniture specifications.
Unusual services deserve a closer look. Examples include inspections, owner’s representative work, construction management and design-build roles. If a service falls outside what the policy contemplates, ask the underwriter before you take the work.
Written confirmation from the carrier or your agent is worth having when the service is not routine for your profession.
How project mix affects the professional services definition at renewal
Applications ask what percentage of your work falls into each project type. The carrier prices your policy based on those answers. If condo work grows from a small share to a large share, the carrier may price the next renewal differently.
Pricing depends on the firm, state, claims history, limits and carrier. An accurate project mix on the application protects you both ways. Reporting a change before you start a large project gives your agent time to talk with the underwriter.
Tell your agent when your work shifts. Do not wait until renewal if the new work is significantly different.
Questions to ask your agent
These questions can start the conversation:
- Are there any project type exclusions or sublimits on my policy?
- Is this unusual service contemplated by the professional services definition?
- Will this project change my renewal?
- Should I report this job to the carrier now?
What we see at Hardcover
An interior designer working as a consultant to an architecture firm on a new condo tower asked whether her policy allowed it. She had listed a percentage of condo work on her application. The policy had no condo exclusion.
We told her to expect the insurer to price more condo work at renewal if it grows. She could take the job, and the carrier would see the shift in her next application.
Related questions
It doesn’t explicitly spell out condos, apartments, multifamily or hospitality. Are those excluded or sublimited?
Not necessarily. Policies rarely list project types. Look for exclusions, endorsements and sublimits that name them. If none appear, the work is generally treated like your other professional services, subject to the policy terms.
We put a percentage of condo work on the application. Is it okay to take a condo tower interiors job?
If your policy has no condo exclusion or sublimit, the work generally falls within your professional services. Tell your agent about the job, since a larger share of condo work can affect your next renewal.
If my policy does not mention condos, are they covered?
Generally, if there is no condo exclusion or sublimit, condo work is treated like your other professional services, subject to the policy terms.
What is a sublimit?
A smaller limit inside your policy limit for a specific type of work or claim.
Will condo projects raise my premium?
They can, at renewal, if they become a bigger share of your work.
General education, not legal advice. Hardcover is an insurance agency, not a law firm.