When it Comes to Insurance Limits for Architects and Engineers, $5 Million is the New $1 Million
Owners are asking architects and engineers to have higher insurance limits just in case something goes wrong, as noted in Oswald’s Spring State of the Market report. Instead of the usual $1 million limit, owners are demanding $5 million and $10 million limits.
The problem is those higher limits might not be available. Our research shows that carriers are hesitant to provide higher limits due to increased capacity and higher claim activity.
But, not to worry. This can be a smooth ride if you plan ahead.
- Once you receive an RFP, reach out to Oswald immediately so we can obtain quotes with higher limits. You might need to split the higher limit among several insurers. Most carriers are not willing to take on the full liability of a $5 million or $10 million policy limit.
- Don’t wait until the last minute to involve your broker. It takes time to ensure you’re in compliance with the demands of the owner and to obtain multiple quotes.
- Have the basics prepared when you approach your broker and insurers. Consider the scope of the project, the construction value, and how much time it is estimated to complete the project.
By proactively considering the needs of insurers and having that information ready, the RFP process can be completed in a timely manner, setting you on a course to winning the business.
For more information, visit our Architects & Engineers page or contact us here.
Note: This communication is for informational purposes only, and is not intended to offer legal, tax, or client-specific risk management advice. Information in this communication is not meant to describe specific coverages that may be advisable or available to you or your company, or to interpret specific coverages that may already be in place. General insurance descriptions in this communication do not include complete insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. View our privacy notice.