Architects and Engineers (A&E) Liability Coverage

What Is Architects and Engineers (A&E) Liability Coverage?

As its name suggests, architects and engineers (A&E) liability coverage is a type of insurance policy designed to protect architects and engineers. Specifically, it provides coverage for potential damages relating to construction delays, structural damages, and other potentially costly risks.

Although A&E liability coverage is designed with the needs of architects and engineers in mind, similar policies are available for other professions, such as doctors and lawyers. Businesses can also obtain general commercial liability insurance to cover a range of potential claims.

How A&E Liability Coverage Works

Designing a building is a complex undertaking. Mistakes in calculations could result in construction delays, or, in the worst case, could even cause a building to collapse. Depending on the nature of the error, the architects and engineers who designed the building could be held partially or fully responsible for these damages, resulting in a costly financial penalty. To protect against this, many architects and engineers purchase A&E insurance.

Although its name refers only to architects and engineers, A&E liability coverage can actually be purchased by a wide range of building professionals, such as electrical or structural engineers, construction managers, and surveyors. Typically, the policies are renewed each year and are purchased by the firm rather than by specific professionals. In some cases, these policies will also provide coverage for subcontractors.

 

Key Takeaways

  1. Architects and Engineers (A&E) liability coverage is a type of insurance product purchased by building design and construction companies.
  2. They help businesses avoid bankruptcy in the event of rare but costly damages for which the business is at fault.
  3. Although it protects the individual professionals, A&E liability coverage is purchased by architecture and engineering firms rather than by the professionals themselves.