While umbrella policies are not as common for an architecture or engineering firm to have, they are available. Typically, the umbrella policy will be with the same insurance company as your firm’s package or business owner policy. The umbrella policy provides an additional limit of liability over your firm’s general liability, automobile liability and employer liability (workers compensation) policies. The umbrella policy is not an additional liability over your firm’s professional liability policy. Your firm will need a separate professional liability excess policy, if the need is there to provide higher limits than your current policy covers.
The umbrella policy will include a schedule of underlying insurance. These are the general, automobile and employer liability policies. Even if your firm’s policies are not with the same insurance company, you will be able to list them under the umbrella policy. Your firm will need to provide information about the policy that is not with your umbrella insurance company to have the policy listed under the umbrella.
The umbrella policy limits will be triggered once your general, automobile or employer limits have been met. The umbrella policy does also have a per occurrence retention or deductible.
Defense for an umbrella policy is within the limits of the policy, not outside of the limits. Also, the umbrella policy will often follow form if it is with the same insurance company. This means, the definitions and policy forms will be the same as the general liability policy, for example.
Your firm’s clients can commonly be listed as an additional insured on the umbrella policy as agreed upon in your firm’s contract. It is advised that your firm reviews your policy to determine if this is included.
If your firm has any questions with regards to your firm’s umbrella policy, please contact your Professional Underwriter agent for assistance.