Architects and engineers put their knowledge, experience and creativity into designing facilities that form the framework of modern civilization. From roadways to buildings to water delivery systems, architecture and engineering companies develop the plans that take infrastructure from ideas to a reality. Many hours go into design, review and quality control to yield buildable plans and specifications. A mistake or omission in your company’s design can have serious consequences in the long term. What protection do you have if a claim is made due to errors or omissions in your design?
Understanding Errors and Omissions Coverage
Professional liability or errors and omissions insurance is specifically designed to cover financial damages to your clients based on mistakes or negligence regarding your work product. It’s not enough for you to invest time and money into hiring the best and producing high-quality products. You also need the protection offered by architectural or engineering E&O coverage:
- Design flaws
- Omissions in work product
- Damages due to professional recommendations
A lawsuit or costly rework due to unprotected errors and omissions in your products can take out your business.
Backing Up Your Work
As the principal of a design company, backing up your work may mean a couple things. It can mean making sure that there are physical backups to electronic documents and resources or providing a guarantee or warranty on your goods. It also means having adequate insurance coverage for your deliverables, which is often required to enter into contracts with some clients.