Guide
Contract Indemnity Clauses for Design Professionals
Written and reviewed by Michael LaBarbera, licensed insurance agent
Indemnity language can impose obligations broader than the professional negligence liability contemplated by insurance. Separate indemnity, defense duties and insurance requirements for agent and attorney review before signing.
What are the key facts?
| No. A contract can impose obligations beyond the professional negligence liability addressed by the policy. | [What Is Contractual Liability Insurance? — The Hartford] |
| A promise of a perfect outcome can go beyond the ordinary professional standard of care and may create uninsured contractual exposure. | [Design Professional Liability — The Hartford] |
| Some insurers allow it, but adding an additional insured to professional liability extends your coverage to another party and can increase your risk; general liability should be reviewed separately. | [Additional Insured on Professional Liability Policies — The Hartford] |
Does insurance cover every indemnity obligation I sign?
No. A contract can impose obligations beyond the professional negligence liability addressed by the policy.
Watch duties to defend, elevated standards of care and responsibility for other parties’ conduct. Have counsel evaluate the contract and an agent review the insurance language; neither a policy limit nor a certificate is legal approval.
Why do promises of perfect performance matter?
A promise of a perfect outcome can go beyond the ordinary professional standard of care and may create uninsured contractual exposure.
Distinguish reasonable professional services from an express warranty of a project result. Review language about error-free plans, complete compliance and outcome warranties with counsel before acceptance.
Can an owner be an additional insured on professional liability?
Some insurers allow it, but adding an additional insured to professional liability extends your coverage to another party and can increase your risk; general liability should be reviewed separately.
Professional liability covers the insured design firm’s professional services. Owner requirements may combine general and professional liability in one paragraph. Separate those requirements and seek agent and attorney review instead of assuming a certificate fixes them.
Does a certificate change the insurance policy?
A certificate summarizes insurance; it does not create an endorsement or expand the policy’s coverage.
Compare the contract with the declarations and applicable endorsements before signing. A certificate issued for an RFP does not prove every indemnity, additional-insured or duration requirement is satisfied.
Prepare for review
Send the entire insurance and indemnity sections with definitions and exhibits. Extracting one sentence may hide an obligation elsewhere in the agreement.
Insurance terms vary by form, endorsement and underwriting. These explanations do not approve a contract or determine coverage for a particular claim.
Frequently asked questions
Does insurance cover every indemnity obligation I sign?
No. A contract can impose obligations beyond the professional negligence liability addressed by the policy.
Why do promises of perfect performance matter?
A promise of a perfect outcome can go beyond the ordinary professional standard of care and may create uninsured contractual exposure.
Can an owner be an additional insured on professional liability?
Some insurers allow it, but adding an additional insured to professional liability extends your coverage to another party and can increase your risk; general liability should be reviewed separately.
Does a certificate change the insurance policy?
A certificate summarizes insurance; it does not create an endorsement or expand the policy’s coverage.
What are the sources?
- Additional Insured on Professional Liability Policies — The Hartford
- What Is a Certificate of Liability Insurance? — The Hartford
- What Is Contractual Liability Insurance? — The Hartford
- Design Professional Liability — The Hartford
Policy forms and endorsements control; this is not legal advice or a coverage decision.
Carrier names identify markets quoted through our agency. Availability depends on underwriting, state, policy wording and endorsements; this is not an offer of coverage.
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