Architect Engineering Errors And Omissions Insurance

Why Engineer and Architect Errors and Omissions Insurance Is Essential

Architects, engineers and other design professionals have unique insurance needs that most E&O policies don’t adequately cover. That’s where Risk Specialty Group comes in. We offer architect and engineering errors and omissions insurance from some of the leading specialty insurance providers in the country.

While many professional liability policies only provide coverage for financial or economic losses sustained by third parties, engineering and architect E&O insurance companies know the importance of covering liability for property damage and bodily injury. For example, if a person injured in a building sues the property owner and that owner, in turn, blames the architectural or engineering business, that business will have liability protection.

Over 20 Architect and Engineering E&O Insurance Companies to Choose From

Risk Specialty Group has relationships with more than 20 specialty insurance carriers. We work only with companies that have an “A” rating. That means that our clients have a lot of options to choose from in seeking an insurance policy that fits their coverage needs and their bottom line. We provide free quotes, so shopping around for the best rate costs you nothing.

Because Risk Specialty Group is an independent insurance agency, we have no obligation to sell insurance from any particular errors and omissions insurance companies. Our job is to find the best, most cost-effective engineering or architect errors and omissions insurance for our clients.

What is covered under professional liability insurance?

Professional Liability (Errors & Omissions) insurance covers you during times a client or 3rd party demands services or money for an alleged wrongful act (or mistake) by you or your firm.  Typical demands covered under professional liability insurance can include:

  • An actual lawsuit from a client claiming your service or design contained an error or omission that has now created Bodily Injury, Property Damage and/or Financial Loss
  • A lawsuit from a 3rd party claiming Bodily Injury, Property Damage and/or Financial Loss from either your mistake or a project you worked on
  • A nasty email (or letter) from a client asking you to fix a costly mistake

As you can see, Professional Liability is meant to protect a professional in the performance of their professional services.  Professional services can include, but are not limited to:

  • Architects & Engineers
  • Surveyors
  • Environmental Consultants
  • Accountants
  • Lawyers
  • Doctors & Dentists
  • Real Estate Agents & Appraisers
  • Health Care Professionals

Many Professional Liability policies only cover economic or financial losses of third parties. This is fine for many professionals like business consultants, real estate agents or accountants. However, professionals like architects and engineers require bodily injury (BI) and property damage (PD) coverage to be included due to the nature of their services.

Some carriers are now starting to include Cyber & Network Liability as a part of their policy to help provide some coverage for firms in delivering their services digitally.

Understanding the differences in coverage between the various policy forms of carriers can be complicated. We have access to over twenty (20) professional liability carriers that have tailored policies for design professionals and consultants.

What does professional liability cost?

Professional Liability can cost anywhere from $700 per year to 5% of your Gross Revenues depending on what type of Professional Liability policy you want and the Services you provide.

There are so many different insurance carriers offering Professional Liability these days and there can be serious differences between what is covered under each carrier’s policy that it makes comparing policies a bit complicated.

However, we can help you decipher the differences between the various policies by giving you clear choices based on your desired coverage and price point.

What is the difference between professional and general liability insurance?

In short, Professional Liability (errors & omissions) covers you for your Professional negligence.  General Liability covers you for claims involving Non-Professional negligence.

Professional negligence are claims dealing with your consulting, services or design work as an accountant, lawyer, engineer, etc.

Non-Professional negligence are claims dealing with your premises or business operations.  An example is a client slipping-and-falling at your office.  It was during business operations, but did not involve the delivery of your professional services.

EX:  An architect designing a house is in need of Professional Liability to protect them for their design work.  However, the general contractor that is building the house is in need of General Liability.

There are often other misunderstandings between Professional Liability and General Liability insurance, which can be seen in contracts or agreements between you and your clients. Many times, agreements will include requirements that are appropriate for General Liability, such as naming your client as an “additional insured”, but are not appropriate or unavailable under the Professional Liability policy. This is why it is invaluable to have an experienced insurance agent on your team that can review your agreements in a timely manner and represents your best interests.

Another area of confusion between Professional Liability and General Liability is in how claims are reported. Most General Liability policies are written on an “occurrence” basis. Coverage on an occurrence policy is determined by the date that the situation giving rise to the claim occurred. Not when the claim is reported with the carrier.

Professional Liability policies are written on a “claims-made” basis. This difference is significant. Under a claims-made policy, the availability of coverage is determined by the date that a claim is first reported. Below is an example on which carrier responds under the different policy types:

Claims-Made—A new claim is filed in 2019 while XYZ Insurance Company’s policy is in effect. Therefore, XYZ Insurance Company would respond to the claim even if the insured was with a different insurance carrier back in 2015 when the event leading to the claim occurred.

Occurrence—The event leading to the claim occurred in 2015 while ABC Insurance Company’s policy was in effect. Thus, ABC Insurance Company’s would respond to the claim even though the insured is currently covered by XYZ Insurance Company when the claim is filed in 2019.

Learn more about the difference between General and Professional Liability.

Do I need professional liability?

The need for Professional Liability (E&O) is created by the type of services you are providing.  Depending on the type of services you are providing, there is usually not a legal requirement to carry Professional Liability.  The need is typically driven by either:

  • Your desire to protect yourself and your firm
  • Contractual requirements with a client

Many people may argue that purchasing Professional Liability just puts a “target” on your back for lawsuits.  And this may be true in a small number of cases.  But eventually, you get to a point in your career and in the maturation of your firm that you are not willing to chance it.  Protecting your firm becomes important to you and your employees to know they are covered in the event of a mistake, or just getting roped into a bad situation because you are involved in the same project.

If you are interested in learning more about how Professional Liability can protect you during a claim, feel free to Contact Us.

What is the purpose of professional liability?

The purpose of Professional Liability (E&O) is to provide you with protection from financial loss during a claim or lawsuit against you and/or your firm.  Protection includes:

  • Organization of the legal team to defend you in the lawsuit
  • Advice on “next steps” and what to do and what not to do
  • Claim and court expenses including expert witnesses
  • Reimbursement of lost earnin for depositions and court appearances
  • Payment on any damages awarded the claimant

All of these costs and expenses are within the policy limits and are subject to your Deductible.  It is important that you work with a Risk Management specialist to help you understand the various policies by giving you clear choices based on your desired coverage and price point.

Why is professional liability important?

Professional Liability is important because it can mean the difference between shutting down your business due to a costly claim and keeping your doors open because you have transferred the cost of the claim to the insurance carrier.

A second, and maybe less important, the reason is that there are times a client may require Professional Liability as a contractual requirement.

How much is E and O insurance

E and O insurance can cost anywhere from $700 per year to 5% of your Gross Revenues depending on what type of E and O policy you want and the Services you provide.

There are so many different insurance carriers offering E and O insurance these days and there can be serious differences between what is covered under each carrier’s that it makes comparing policies a bit complicated.

However, we can help you decipher the differences between the various policies by giving you clear choices based on your desired coverage and price point.

Custom Coverage at a Competitive Price

Many businesses view their insurance agent as a “vendor”. That is not us. We are a “guide” in helping you navigate the complex world of Insurance & Risk Management. Here are the 3 ways you can get started with us now:

Just a Quote

Already know what Insurance your company needs?  Fill out our applications to get a quote.

Conversation then a Quote

Unsure about what you really need?  Talk with one of our licensed Insurance Agents for advice and next steps.

Full 360° Review

Need a comprehensive review of your company’s exposures? Let one of our licensed Insurance and Risk Managers give you a free in-depth risk analysis.

What Our Clients Are Saying

Risk Specialty Group has handled my micro-company's insurance for almost three years. They have consistently provided prompt, professional, friendly, and effective customer service. I am always sure that I have access to their "A" team and that they are in my corner. Of all my service providers, they are #1 in that department. 6 stars if I more
David Nelson
David Nelson
15:10 01 Apr 19
We have been using the Risk Specialty Group for our company insurance for two years and have been very happy with our rates and with the customer service that we have received. They are always quick to respond to questions and requests. Highly recommended!read more
Todd McMakin
Todd McMakin
16:00 04 Dec 18
Risk Specialty's owner is great to work with, excellent knowledge of the marketplace and clients' insurance needs. The staff is thorough, experienced and friendly. Great shop to consider for your insurance more
Su Young
Su Young
18:52 04 Dec 18
Very professional group with great attention to detail. They care about their customers! I highly recommend them!read more
Elizabeth Schlitzberger
Elizabeth Schlitzberger
15:23 17 Jan 19
I am currently renewing my coverage for year (2) of my business. Everyone at RSG has been extremely helpful, while also being clear and concise with all my options and/or questions through every step of my growth, risk management and company success. I would highly advise and/or recommend RSG to anyone looking to find a firm you can count on...but most importantly, trust!read more
Parallax Consulting Group
Parallax Consulting Group
01:30 19 Dec 18

A Customized Insurance Program Designed Especially for You

Our insurance professionals do a lot more than find you a good specialty insurance policy. We provide a full-service relationship that includes:

  • Getting to know your business to determine where it’s underinsured or uninsured.
  • Assessing your required coverages and limits.
  • Providing ongoing customer support to help you minimize risk.
  • Regularly reassessing your processes and insurance needs to make sure that you have the engineering or architect errors and omissions insurance coverage you require as your business grows and changes.

Contact Us Today for a Free Consultation

Call or email us to learn more about our services and to find out how Risk Specialty Group can help you protect your business.


4801 Woodway, Suite 300E
Houston, TX 77056




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