Who typically obtains professional liability insurance?

Who typically obtains professional liability insurance?

• A. Subcontractor
• B. Owner
• C. Architect/Engineer (A/E)
• D. General Contractor

Answer: (C)

Professional liability insurance, often called errors and omissions coverage, protects design professionals from claims alleging their professional services caused financial loss due to mistakes, oversights, or negligent advice. Architects and engineers are the ones who typically obtain this coverage because their work involves design decisions, calculations, and specifications that directly impact project outcomes. Subcontractors and general contractors focus more on performance risk and usually carry general liability, bonding, and workers’ compensation rather than professional liability insurance. Owners may require professional liability coverage from the design team, but the insured party for design services is typically the architect or engineer. This is why design professionals are the ones most commonly associated with professional liability insurance.

Professional liability insurance, often called errors and omissions coverage, protects design professionals from claims alleging their professional services caused financial loss due to mistakes, oversights, or negligent advice. Architects and engineers are the ones who typically obtain this coverage because their work involves design decisions, calculations, and specifications that directly impact project outcomes. Subcontractors and general contractors focus more on performance risk and usually carry general liability, bonding, and workers’ compensation rather than professional liability insurance. Owners may require professional liability coverage from the design team, but the insured party for design services is typically the architect or engineer. This is why design professionals are the ones most commonly associated with professional liability insurance.