Insurance for Public & Government Projects Projects
Federal, state and municipal work comes with agency contract forms that are hard to change, required insurance minimums, and decisions made in public.
Many public contracts ask design firms to indemnify and defend the agency broadly, which can go beyond what insurance covers.
Why Public Work Is Different
Language requiring you to defend the agency from the start of any claim may not be insurable in full.
The public uses the finished project, so injury claims can name the designer along with the agency.
Agencies set minimums and sometimes require specific endorsements or bonds.
For example: the agency’s defense bill
A pedestrian is injured at a new city plaza and sues the city. The city tenders its defense to the landscape architect under the contract’s duty to defend, before anyone has decided the design was at fault.
The firm’s policy defends the firm. Whether it also pays to defend the city depends on the contract wording, the state’s rules on design professional indemnity and the policy’s contractual liability terms.
Hypothetical example for illustration. Coverage for any claim depends on the policy terms and the facts.
Contract Language to Watch.
A duty to defend from day one can exceed your policy. Many states limit this for design professionals, so check your state’s rules.
Common for design-build and some consulting contracts. Bonding takes time, so plan ahead.
Public & Government Projects: Common Questions
Is a duty to defend covered by my professional liability?
Often only in part. Professional liability defends you against claims about your negligence. A promise to defend the agency against any claim can go beyond that.
Do I need a bond for public design work?
Sometimes, especially on design-build. See our Surety Bonds page for how bonding works.
Can a city require us to name it as additional insured on professional liability?
It can ask, but professional liability almost never allows additional insureds. The usual fix is to change the contract language, which most agencies accept.
Disciplines Most Active on Public & Government Projects 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.