Insurance for Healthcare Facilities Projects
Hospitals, clinics and surgery centers are among the most demanding projects a design firm takes on. The building is often occupied, the systems keep people alive, and the rules are strict.
Claims on healthcare work tend to be large, because a design problem can shut down operating rooms or patient floors.
Why Healthcare Work Is Different
Infection control, phasing and shutdowns in a working hospital raise the stakes of every decision.
Medical gas, emergency power, air pressure and isolation rooms must perform exactly as designed.
Health department and accreditation reviews can delay opening if something is missed.
A department that cannot open costs the owner a great deal every day.
For example: the operating room that could not open
A hospital renovates four operating rooms. At inspection, the air pressure relationships do not meet the required standard, and the rooms stay closed for five weeks while the ductwork is reworked. The hospital claims lost revenue and rework costs from the mechanical engineer.
The engineer’s design basis, the commissioning record and the contract’s limits on consequential damages decide how much of that loss the firm faces.
Hypothetical example for illustration. Coverage for any claim depends on the policy terms and the facts.
Contract Language to Watch.
Lost revenue on a hospital can dwarf your fee. A waiver of consequential damages is common and worth asking for.
Hospitals often ask for $2M to $5M per claim. Your limits should match your largest contracts.
Healthcare Facilities: Common Questions
Do hospitals require higher professional liability limits?
Often, yes. Many health systems ask for $2M or more per claim, and some ask for a project policy on major work.
Is lost revenue covered if our design delays opening?
Professional liability can respond to damages you are legally liable for, subject to the policy terms, but contracts often limit lost revenue. A consequential damages waiver is the best protection.
What is infection control risk and why does it matter to us?
During renovation in an occupied hospital, dust and air movement can spread infection. Designs and phasing plans that address it are closely examined if patients are harmed, so it is worth documenting what you specified.
Disciplines Most Active on Healthcare Facilities Projects.
Tell Us About Your Firm. We’ll Tell You What We See.
Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.