Guide
Professional Liability for Firms With Claims or Declines
Written and reviewed by Michael LaBarbera, licensed insurance agent
A decline or nonrenewal does not establish that every insurer will decline a design firm. We review the actual services, project mix and loss circumstances before approaching other markets through our agency.
What are the key facts?
| Different services and projects create different underwriting exposures, so an application asks how the firm’s work is distributed. | [Great American — Design professional liability application] |
| No. Pre-claim assistance is a separate feature for addressing a potential problem before a formal claim, subject to policy terms. | [Design Professional Liability — The Hartford] |
| It is a specific policy feature addressing qualifying expenses associated with a design error; it is not an unrestricted project correction fund. | [Design Professional Liability — The Hartford] |
Why does project mix matter?
Different services and projects create different underwriting exposures, so an application asks how the firm’s work is distributed.
Describe prior and planned work accurately. A carrier’s referral question is not a market-wide exclusion. The agency can review other markets when a program does not fit, without promising placement.
Is pre-claim assistance the same as a paid claim?
No. Pre-claim assistance is a separate feature for addressing a potential problem before a formal claim, subject to policy terms.
The Hartford guide lists pre-claim assistance. Read notification requirements and avoid assuming a discussion with the insurer replaces formal claim reporting.
Why do carriers ask for billings instead of only a revenue range?
They need the scale and composition of the professional work for their own underwriting definitions.
Great American’s application distinguishes professional billings, subconsultants and specified reimbursables. A quick lead-form range is useful for triage but is not a substitute for a carrier-ready financial schedule.
Prepare for review
Prepare currently open and closed loss information, claim dates, corrective measures and the reason given for nonrenewal. Do not wait until the policy expires to disclose a pending circumstance.
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
Why does project mix matter?
Different services and projects create different underwriting exposures, so an application asks how the firm’s work is distributed.
Is pre-claim assistance the same as a paid claim?
No. Pre-claim assistance is a separate feature for addressing a potential problem before a formal claim, subject to policy terms.
Why do carriers ask for billings instead of only a revenue range?
They need the scale and composition of the professional work for their own underwriting definitions.
What are the sources?
- Design Professional Liability — The Hartford
- Great American — Design professional liability application
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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