The firm's insurance portfolio: Professional Liability, CGL, Workers' Comp, and secondary lines

One-line orientation

Each insurance policy covers a different kind of loss. Start by separating professional mistakes, general business injuries, employee injuries, vehicles, and property.

Key points

• Professional Liability Insurance (Errors & Omissions / E&O):

  • Covers claims for negligent professional acts — errors, omissions, and mistakes made while providing architectural services — plus damages if the architect is found liable.
  • Does not cover intentional wrongdoing or promises made above the standard of care (guarantees, “best efforts” language, warranting results).
  • This is a claims-made policy (see related card).
  • AIA B101 requires architects to carry it.

• Commercial General Liability (CGL):

  • Covers bodily injury and property damage to third parties arising from non-professional business operations — a client injured at the office, an employee who accidentally damages a client’s property.
  • Typically an occurrence-based policy.
  • AIA B101 requires architects to carry it.

• Workers’ Compensation:

  • State law sets when workers’ compensation is required and what minimum coverage applies.
  • Covers employees injured while performing their job.
  • It is generally the employee’s exclusive remedy for covered workplace injuries, subject to jurisdiction-specific exceptions.
  • AIA B101 requires architects to carry it.

• Employers’ Liability:

  • Covers employee-injury claims that fall outside the workers’-comp statutory system (e.g., third-party-over claims). Usually written together with Workers’ Comp as Part Two of the same policy.
  • AIA B101 requires architects to carry it.

• Automobile Insurance:

  • Required when employees use company-owned vehicles, rent cars for business, or use personal vehicles for business purposes.
  • AIA B101 requires architects to carry it.

• Secondary / supplemental lines:

  • Employment Practices Liability — protects the firm from employee litigation (discrimination, wrongful termination claims).
  • Property Insurance — covers the office and its contents against covered causes such as fire or theft. Flood generally requires separate coverage.
  • Valuable Papers Insurance — covers replacement of drawings, models, and critical project documents.
  • Fidelity Bond — covers employee theft.
  • Umbrella / Excess Coverage — generally adds limits above CGL, auto, and employers’ liability. Professional liability needs its own excess coverage.

• Policy basics:

  • Premium is typically proportional to the firm’s average billings; affected by claim history, project types, and risk-mitigation practices.
  • Policy limit = maximum the insurer pays; the firm is responsible for anything above it.
  • Deductible = the amount the firm pays before the insurer covers the remainder.
  • Some project types (e.g., condominiums) are more litigious and raise premiums.

Confusions / comparison

Policy	What it covers	Policy trigger	Mandatory?
Professional Liability (E&O)	Negligent professional acts, errors, omissions	Claims-made	Yes (B101 §2.5)
Commercial General Liability (CGL)	Bodily injury / property damage from non-professional operations	Occurrence	Yes (B101 §2.5)
Workers’ Compensation	Employee on-the-job injuries	Statutory / occurrence	Yes (statutory + B101 §2.5)
Employers’ Liability	Employee-injury claims outside the workers’-comp system	Occurrence	Yes (B101 §2.5)
Auto Insurance	Vehicle use for business	Occurrence	Yes (B101 §2.5)
Employment Practices Liability	Employee litigation against the firm	Usually claims-made; policy-specific	No
Property Insurance	Office and contents	Occurrence	No
Valuable Papers	Drawings, models, documents	Occurrence	No
Fidelity Bond	Employee theft	Occurrence	No
Umbrella / Excess	Added limits above listed underlying policies, generally CGL/auto/employers’ liability	Follows underlying	No

Related

→ pp-claims-made-vs-occurrence — how E&O (claims-made) and CGL (occurrence) differ on timing of coverage
→ pp-standard-of-care — why contract language that raises the SoC is uninsurable under E&O
→ pp-surety-bonds — bonds required of the contractor (bid, performance, payment) — distinct from firm insurance
→ pp-certificate-additional-insured-subrogation — proof of coverage and named-party instruments