Architects and engineers are some of the most professional, detail-oriented businesses in the world — but when it comes to insurance, many firms unknowingly leave major gaps.
Here are the Top 5 insurance mistakes we see A&E firms make repeatedly — and how to avoid them.
1) Assuming General Liability Covers Professional Mistakes
This is the #1 misconception.
General Liability (GL) covers bodily injury / property damage (slip & fall, jobsite accidents, etc.).
It does not cover design errors, negligence, incorrect drawings, or stamp-related issues.
The coverage that responds to design mistakes is:
Professional Liability (A&E E&O).
If your firm designs, drafts, calculates, stamps, or specifies materials — GL alone is not enough.
2) Buying the Cheapest Professional Liability Without Reviewing the Exclusions
Many low-cost Professional Liability policies have exclusions that quietly eliminate the real risk.
Common exclusions that hurt A&E firms:
- Residential / multifamily
- Structural elements or stamped work
- Construction means & methods
- Design-build
- High hazard project types (retaining walls, pools, hillside work, etc.)
If you don’t understand exclusions, you don’t know what you bought.
3) Not Matching Policy Dates to Contract Requirements
Owners and GCs often require:
- specific limits
- specific retroactive dates
- specific project types
- multi-year completed operations coverage
Big mistake: your firm might be insured — but not insured in a way that satisfies the contract, which becomes a major legal and financial exposure.
4) Misclassifying Operations (Design-Build / Construction Exposure)
A&E firms are increasingly offering:
- design-build
- construction management
- drafting + installation
- consulting + project oversight
If the business is described incorrectly to the carrier, two bad things happen:
- claim disputes become more likely (“misrepresentation” arguments)
- policies get rated wrong (often cheap at first, then painful later)
The right structure is often:
- GL/BOP for operations + jobsite risk
- A&E E&O for design services
- Clear underwriting description showing how responsibility is split
5) Letting Professional Liability Lapse (Even for 30 Days)
Professional Liability is claims-made coverage — meaning the policy in force when the claim is made is what matters.
If you cancel or let coverage lapse:
- claims from past work can in later
- you may lose retroactive protection
- you may need expensive tail coverage (ERP)
One gap can create a permanent hole in protection.
Bottom Line
Insurance for architects and engineers isn’t about buying a policy — it’s about buying a defensible risk program.
At Strux Insurance, we specialize in A&E firms and can quickly review:
- contract requirements
- exclusions
- retro dates
- project type exposure
- stamping / structural elements
- design-build structure