Optimizing Professional Protective Indemnity Coverage

Source: https://www.irmi.com/, April 2, 2024
By: Jeff Slivka

Professional protective indemnity coverage is an effective financing mechanism for contractors and owners who are hiring design professionals or engineering firms. Both owners protective indemnity and contractors protective indemnity coverage insure against the risk of catastrophic damages caused by hired design professionals or engineering firms. 1

This added protection is becoming increasingly important as many architects, engineers, and design professionals secure lower professional liability insurance limits than necessary. For example, one of the largest engineering trade associations in the country—American Council of Engineering Companies (ACEC)—recently completed its 2022 annual insurance survey of its membership, which analyzes the cost and limits purchased by each of the participating firms. ACEC found that 70 percent of civil, 84 percent of geotechnical, and 74 percent of structural engineering firms purchased professional liability limits of $3 million or less. Likewise, 86 percent of all types of firms generating $49 million or less in fees/revenue purchased professional liability limits of $5 million or less. Read more.

Find a Broker or Underwriter

Search by product, location or name

Please Update Your Browser

Unfortunately Microsoft is no longer providing support or security fixes for your web browser. RT Specialty values the safety and security of its clients’ data, and as such this site requires the use of a modern web browser. To update your web browser, please see the links below. If you have any questions or would like additional information, please email info@rtspecialty.com or call (312) 784-6001.

Firefox Firefox Chrome Chrome IE Internet Explorer Edge Microsoft Edge