© 2019 by Stateside Underwriting Agency

Architects and Engineers Professional Liability (A&E), Manufacturers E&O and Mining Professional Liability

Architects & Engineers, Design-Build Contractors and Manufacturers E&O Professional Liability

 

SUA’s A&E Program provides broad coverage to address the claims that may arise out of the myriad disciplines of the A&E class, the pollution, design and construction management exposures contractors can experience or allegations of 3rd party financial loss due to the failure of a manufacturer’s product.  We have the ability to include Cyber to most products and General Liability to our A&E with competitive rates and minimum premiums. 

 

Below, we cover 3 key products: 

 

Architects & Engineers Professional Liability (A&E)

Design/Build-Contractors Professional Liability (DBC)

Product Manufacturer’s Professional Liability (MANU)

A&E

 

An architect is a design professional who uses creativity and a practical understanding of structures and materials to provide for people's living and working environments. In satisfying human needs for shelter, architects must take into consideration factors such as: aesthetics; the personal tastes and needs of the client; the site; materials; costs; and environmental factors.

 

Besides coverage for financial loss an architect or engineer requires insurance that provides protection for contingent bodily injury and property damage claims, which most A&E insurance policies include. However, some A&E firms, such as specialty engineering consultants or construction managers, operate as specialty consultants and might not purchase an A&E policy form. Since many non-A&E professional liability policies exclude contingent bodily injury and property damage claims, it is important to match the coverage with the specialty services provided by the architect or specialty engineer.

 

SUA can consider a wide range of specialty architects and engineers, including those listed below. 

 

Architects (Residential)                               Architects (Commercial)               Aerospace Engineers

Agency Construction Managers                Amusement Ride Engineers        Automation Engineers

Chemical Engineers                                     Civil Engineers                               Control System Integrators

Electrical Engineers                                     Forensic Engineers                        HVAC Engineers                                                     

Interior Designers                                        Mechanical Engineers                  Military Engineers

Nuclear Engineers                                       Oil/Gas Engineers                         Process Engineers

Prototype Product Design                          Steel Detailing                               Structural Engineers

Telecommunications Engineers                Urban Planners

 

We can consider coverage on a primary or excess basis for practice or project specific policies.  We have capacity for up to $5,000,000 in limits.  Minimum premium starts as low as $1,500.   SUA also has the capability of adding Commercial General Liability (CGL) coverage as well as Cyber Liability coverage to our A&E policies. Our CGL polices are offered on an occurrence form and premiums start at $450 for a $1,000,000$2,000,000 limit.

DBC

 

Contracting firms that perform construction services open themselves up to additional risk if they perform design services in house with employed design and/or engineering professionals.   Even if a contractor has no design/engineering professionals on staff, they can have a vicarious exposure if they are responsible for subcontracting the design/engineering services to a third party.   SUA’s DBC policy form covers contractors for negligent acts, errors or omissions of employed design/engineering professionals, including independent contractors for whom the contractor is legally responsible.

 

While SUA’s A&E and DBC forms include coverage for pollution conditions arising out of professional services, our DBC form also covers pollution conditions arising out of the insured’s contracting services.  Pollution coverage also extends to pollution conditions arising from transportation of waste or materials from the place where contracting services are being performed or if that waste or materials causes a pollution condition at a non-owned disposal site.

 

For DBC accounts, SUA can consider coverage on a primary or excess basis for practice or project specific policies.  We have capacity for up to $5,000,000 in limits.  Minimum premium starts as low as $2,500.  

 

MANU

 

Manufacturing Errors Professional Liability is typically referred to as Manufacturers E&O. To be considered for Manufacturers E&O the insured, not a 3rd party, must be the manufacturer of the products for which coverage is desired.  

 

Coverage is for legal liability arising from financial loss incurred by a third party due to the loss of use of tangible property that is not physically damaged resulting from the failure of the manufacturer's product to meet the level of quality, fitness or durability represented by the manufacturer.  This helps fill the coverage gap when there is financial loss, but no bodily injury or property damage to trigger coverage under General Liability or Product Recall policies.

 

The primary Manufacturer's E&O insuring agreement covers any wrongful act arising out of the rendering or failure to render “Manufacturer's Professional Services” by the insured or by any person for whom the insured is legally responsible. Manufacturer's Professional Services means the design, development, manufacturing, selling and value-added reselling of products by the insured.  The definition also includes an insured's advice, consultancy, design, plan, specification, formula, labeling, packing, instructions for use and warnings for any Product supplied by or on behalf of the an insured.  Installation of an insured’s product by the insured and training/support by the insured is covered.

 

Examples of businesses in need of Manufacturer's E&O program are manufacturers of replicated component, parts or machinery that is incorporated into a 3rd party’s own product or used in a 3rd party’s daily operations.  Manufacturers of steel pipe, wood products, plastics, glass, simple electronics, or press tool machinery are some more specific examples. 

 

We can consider coverage on a primary or excess basis and is usually for an insured’s full line of products.  Product or client specific coverage can be considered on a case-by-case basis.  We have capacity up to $5,000,000 limits and premiums can start as low as $3,500.  

 

COVERAGE

 

All A&E, DBC and MANU policies written by SUA are as a cover holder for Underwriters at Lloyd’s, London, rated A XV by AM Best.  In addition to the coverage discussed above, these policy forms include the following common coverage conditions (exceptions noted in BOLD print):

 

·       Right and Duty to Defend Wording

·       A&E / DBC: True Worldwide Coverage

·       MANU: Worldwide Coverage for claims brought in USA or Canada.

·       A&E: Pollution Liability arising from Professional Services

·       DBC: Pollution Liability arising from Professional Services or from Contracting Services, Transportation or Non-Owned Disposal Sites.

·       MANU: Pollution Liability arising from a third-part site.

·       A&E / DBC: Technology Based Services and Technology Products Liability

·       Computer Network Security & Privacy Liability

·       Multimedia & Advertising Coverage

·       A&E / DBC: Regulatory/Administrative Actions Reimbursement

·       Defendants’ Reimbursement

·       Disciplinary Proceedings Reimbursement

·       Reputation Management Reimbursement

·       Punitive Damages (if insurable by law)

·       A&E / DBC: 50/50 Settlement Clause AKA “the hammer clause”

·       A&E / DBC: Mediation Deductible Credit (less of 50% of the Deductible or $10K)

·       1-3 Year Bilateral Extended Reporting Period / 60 Day Automatic Extended Reporting Period

·       Automatic Waiver of Subrogation if required by written agreement.

·       60 Day Cancellation Notice Requirement (10 for non-pay)

·       Risk Management and Contract Review Services available to policyholders

 

Coverage Form Links:

Architects/Engineers Professional Liability Insurance APPLICATION

Architects/Engineers Professional Liability Insurance POLICY

Manufacturers E&O Professional Liability Insurance APPLICATION

Manufacturers E&O Professional Liability Insurance POLICY

Mining Professional Liability Insurance APPLICATION

CGL GL Supplemental APPLICATION

DBC Design Build APPLICATION

 

 

 

 

Please send your A&E, DBC and MANU submissions to the following:

 

AEdirect@statesideunderwriting.com