What is
Architects & Engineers Professional
Liability(E&O)
It's financial protection for
professionals against the mistakes they can make in doing their everyday jobs.
Just like doctors have medical malpractice insurance to defend themselves
against lawsuits, other types of professionals--such as architects or engineers--need
protection in case they make an error or omission on the job. Professional
liability coverage pays your client's defense costs and damages in the case of
a claim.
Even though professionals
always try to do their best for their clients, mistakes do happen. And in such
a litigious society, lawsuits have become an inevitability. Professional
liability coverage not only pays judgment costs, it also prepares you for a
lawsuit by paying claims defense costs. After all, even the fraudulent claims
cost your business money.
A basic policy provides legal
defense of claims covered by the policy and pays defense costs subject to the
policy
limit and deductible. Most
insurance companies retain attorneys who are experienced in the defense of
professional
liability claims. When a
defense attorney is selected and appointed to defend the policyholder, it is
that
firm—not the insurance
company—that is the defense attorney’s client. Some firms, however, may be able
to
select their own defense
counsel.
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