Zolofra Insurance Agency Blog

How Much Is Professional Liability Insurance For Architects and Engineers?

2020-05-15T09:00:00-07:00

Architects and engineers face a variety of risks by offering specialized services to a multitude of clients and projects. Without the proper insurance, one simple mistake could land you and your business in an expensive lawsuit.

Professional liability insurance for architects and engineers helps cover costs associated with claims regarding professional negligence. Even the most experienced engineers and architects can make mistakes. Unfortunately, those mistakes can cost you. Professional liability insurance can compensate you or your business for legal expenses should a client decide to sue.

Professional Liability Claims

To paint a clearer picture of how professional liability insurance can benefit architects and engineers, here are a few examples of claims that could be covered under professional liability.

An architect is hired to design a new section of a high school. When building begins, the client realizes that there has been a mistake in the design. The original cost of the school section was $100,000. Not wanting to repair the mistakes from their pocket, the client files a claim against the architect for faulty design.
A civil engineer begins a project designing a set of bridges. While they are overseeing the project, one of the bridges falls due to poor foundation. Instead of taking out a claim on their property insurance, the client (either public or private) decides to sue the engineer for negligence, since the project was under their control at the time.
A flight engineer analyzes planes for a popular company to make sure they are in working order. While looking, the engineer is distracted and fails to notice worn electrical components, which later cause issues during flight and damage to the plane. The client (in this case, the airline) then seeks compensation for the damages.

The Cost Of Professional Liability Insurance For Architects And Engineers

The cost of professional liability insurance depends on a variety of factors. Aside from the industry and profession, this price may also vary depending on:

Size of business/number of professionals covered
Location
Coverage limits
Deductible

A single engineering business may pay around $1,875 a year for professional liability insurance. Architects pay around the same amount, which is about $1,730 a year. Professional liability insurance can often come as an endorsement for a business owners policy (BOP) or commercial policy package (CPP). Bundling insurance policies is a useful way to save money on important coverages.

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Why Your Business May Need Professional Liability Insurance

2020-04-15T09:00:00-07:00

Running a business requires time, effort, dedication and planning. While you meticulously plan the goods you'll produce, the areas you'll serve and the physical location of your business, it's important to also keep in mind insurance. Business insurance is designed to protect a business' assets from products, stores and food to employees and directors of the board. But the primary source of risk businesses face are the clients themselves.

Accidents happen. Mistakes can be made. It's not the end of the world, but a bad lawsuit could be the end of your business. If you don't have the right business insurance policy, you could be looking at thousands of dollars in court fees, attorney costs and settlement prices after a single mistake.

If you or your company offers professional services, you will need professional liability insurance.

What Does Professional Liability Insurance Cover?

Professional liability insurance goes by many names, such as Errors and Omissions insurance, E&O insurance and medical malpractice insurance. This coverage handles accidents involving professional negligence. Professional negligence refers to incidents where a self-proclaimed professional or specialist makes a mistake while providing their services, and that mistake causes a client to lose money.

For example, say you run a small IT consulting firm. You advise a client, but that advice causes a blackout that leads to your client losing thousands of dollars. The client can then sue you and the company for that loss.

Like all insurance, this coverage has certain limits. Professional liability insurance will not cover:

Intentional harm
Criminal acts
General liability
Property damage
Employee lawsuits
Directors and officers
Accidents that occur while the professional is under the influence of drugs or alcohol

What Is The Difference Between Professional Liability And General Liability?

General liability and professional liability are similar. But they cover very different risks for businesses. While professional liability insurance covers professional negligence, general liability insurance covers non-professional negligence. Non-professional negligence refers to accidents that arise out of everyday business operations not related to a specific profession or specialty. For example, if your yoga client walks into your studio, slips and falls in the lobby, this is a circumstance of general liability.

Professional liability is crucial for certain industries and required for others. Common professions that carry professional liability insurance include:

Lawyers
Accountants
Medical professionals
IT consultants
Home inspectors
Real estate professionals
Insurance agents

If your company offers a specialized service, consider investing in professional liability insurance.

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What Is Home Inspectors Insurance?

2020-03-23T09:00:00-07:00

One profession that people often overlook is that of the home inspector. Home inspectors face a surprising amount of risk when it comes to performing their job. Thankfully, there's coverage to protect against those risks.

Home inspectors insurance isn't a tangible insurance policy. Instead, it's a combination of important insurance coverages tailored to protect against certain claims the insured home inspector may face.

What Does Home Inspectors Insurance Cover?

A basic home inspectors insurance policy typically includes general liability coverage and professional liability coverage.

General Liability: This refers to bodily injury and property damage to third parties that arise out of non-professional negligence. If you have an office where someone slips and falls, for example, general liability will help with their medical expenses. It can also cover possible legal fees if they decide to sue.
Professional Liability: Professional liability insurance covers claims regarding acts of professional negligence. Home inspectors follow certain rules and guidelines when inspecting homes. If they make a mistake that leads to a client losing money, a lawsuit could follow. Professional liability insurance helps to cover legal fees related to such a lawsuit.

The limits of each coverage you need depend on the size of your practice and the scope of your home inspections. If you operate in areas with a high cost of living, your coverage may need to be more extensive than a home inspector in lower middle-class areas.

Keep in mind that these coverages are liability only. You may need other insurance policies if you operate from a physical address or employ workers.

How Much Is Home Inspectors Insurance?

The cost of home inspectors insurance varies. Depending on the type of coverage you have and your limits, you could pay anywhere from $500 a year for general liability insurance and $600 to $1,200 a year for professional liability insurance. If you're an independent home inspector, your rates are likely to be toward the lower end. There are many factors that may affect your monthly home inspector insurance premiums, however, such as your:

Location
Size of the business
Experience
Claims history
Credit score
Coverage limits
Deductible

Higher deductibles will mean lower monthly premiums. But it also means that you'll have to pay more out of pocket when filing a claim. More experienced home inspectors may find cheaper home inspector insurance rates, depending on their credit score and amount of claims filed in the past.

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Liability Insurance For Environmental Consultants

2020-02-19T09:00:00-08:00

If you're an environmental consultant, you face a lot of liability risks. Giving advice and keeping clients up to date on policies and procedures can leave you open to more risks than you may think.

Let's say you run field tests and decide that your client's new business structure won't have any adverse effects on the land or the city nearby. When construction begins, however, the pollution from drilling spills into the water and contaminates the drinking water of the city nearby. Now, your client's business faces a lawsuit by the city, and the blame falls to you for not conducting a thorough test. Although you work diligently, mistakes happen, and it's important to always be prepared.

So, what insurance should you have to protect yourself and your business?

There are many different coverages you can purchase as an environmental consultant. The main liability insurances you may need include:

Commercial General Liability Insurance: This is a basic insurance policy that every business should carry in case everyday business operations cause bodily injury or property damage to a client or other third party. This insurance can also help with legal fees should the victim sue.
Professional Liability Insurance: This is the insurance policy needed to cover the incident specified above. Also known as errors and omissions insurance, professional liability insurance provides compensation if your advice (or your company's advice) causes a client to lose money.

Carrying these insurance policies won't only ensure that you're covered in the event of an accident or lawsuit. It will also reassure your clients that, if a mistake is made, they will receive compensation.

The Cost Of Insurance For Environmental Consultants

The price of professional liability insurance varies depending not only on your profession, but also your location, claims history and credit. Overall, the median cost of professional liability insurance is around $650 a year. The cost of general liability insurance for consultants has a median of around $350 a year.

You may also be able to bundle certain insurance, especially if you have a physical address for your business. A business owners policy (BOP) combines general liability and property coverage into one affordable policy for small businesses. This doesn't cover professional liability, however. Larger businesses should consider a commercial package policy — which combines coverage from a BOP and allows for additions such as professional liability, business income insurance, commercial auto insurance and crime insurance.

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Will Restaurant Insurance Cover Dine-And-Dash Losses?

2020-01-21T09:00:00-08:00

Owning a restaurant is a great way to make a solid income while sharing your love for the culinary arts. But what happens when patrons decide to skip out on a check? And how can you make sure you're covered for this type of loss?

Here's more information on how restaurant insurance pertains to dine-and-dash losses.

What Is Dine-And-Dash?

It's important to first define what a dine-and-dash loss includes. Essentially, this is where a restaurant patron orders a meal and leaves without paying the check first. This can be something as simple as a small item or — in the case of what a few professional thieves try to get away with — ordering hundreds of dollars in expensive foods to rack up the highest bill possible. In some restaurants, management requires servers to pick up the tab. But most modern eateries are moving away from this archaic policy and instead absorb the cost themselves.

How Restaurant Insurance Covers Dine-And-Dash Losses

You likely already have business insurance coverage. But you might wonder how it fits into this type of scenario. Technically speaking, restaurant insurance does cover dine-and-dash losses. In short, this is theft and falls under a broad umbrella of different incident types.

However, that doesn't necessarily mean that it is wise to file a claim. In most cases, you'll have a deductible on your business insurance policy that must be met, including with theft claims. For some situations, it just isn't worth filing.

When It Makes Sense To File A Claim

Of course, the type of restaurant you own and the price point of your menu have a large bearing on whether or not you should file a claim for a dine-and-dash loss. For example, if a patron skips out on a measly $50 bill, it might not be fruitful for you to pursue a claim. But if you own a fine dining establishment where food and beverages could easily create a bill that's over $500, it might be a good idea to contact your insurance agent to file against your policy.

Furthermore, frequent claims on your policy could create a problem in the future, so it is always best to speak with your agent before filing a claim for dine-and-dash losses.

Ready to learn more about covering your restaurant against risk? Please contact All Pro Coverage today to schedule a no-hassle policy review appointment.

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