Who Needs to be Aware of Professional Liability Policy Exclusions?

by | Mar 20, 2023 | Liability Risks, Project Management, Topics | 0 comments

Awareness of the exclusions in the professional liability policy is essential to prevent a Project Manager or design team member from inadvertently agreeing to or actually performing design activities that are not covered by the professional liability policy. Accordingly, every Project Manager should have a copy of the policy exclusions.

Activities that are typically excluded from professional liability policies include the following:

  1. Claims based on the insured having provided express warranties, guarantees, assurances, etc. that are beyond the “standard of care”
  2. Claims resulting from the manufacture or distribution of products
  3. Claims based on personnel matters such as discrimination, harassment, wrongful dismissal, employee benefits, etc.
  4. Claims based on construction performed by the insured
  5. Claims based on damage to property owned, rented by, or under the control of the insured
  6. Claims related to the design of nuclear energy facilities

There may be many other “exclusions” that are not mentioned above.  Be sure to refer to the specific policy for the exclusions.

Want more?

A book entitled “A Guide to Managing Engineering and Architectural Design Services Contracts – What Every Project Manager Needs to Know” is available to assist design professionals in managing their professional services contracts.

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Lowe Consulting, LLC
John M. Lowe, Jr., P.E.
Happy Valley, OR