Guide
Practice vs Project Professional Liability
Written and reviewed by Michael LaBarbera, licensed insurance agent
A practice policy addresses the firm’s insured professional services across its practice; a project policy is arranged around a specified project and insured parties. Availability, duration and interaction between policies need a project-specific review.
What are the key facts?
| Project-policy options exist, but availability and terms depend on the project and participating firms. | [Architects & Engineers Professional Liability — GUARD] |
| It addresses claims alleging negligent acts, errors or omissions in insured professional services, subject to the policy’s terms. | [Design Professional Liability — The Hartford] |
| Start with contract requirements and project exposure, then compare available policy limits and how defense expenses affect them. | [Design Professional Liability — The Hartford] |
Can professional liability be arranged for a single project?
Project-policy options exist, but availability and terms depend on the project and participating firms.
Compare the insured parties, professional-services scope, reporting period and interaction with practice coverage. GUARD’s published architects and engineers material lists a specific project excess endorsement as available; confirm terms during underwriting.
Why does the application ask about subconsultants?
Subconsulted services and insurance arrangements help the underwriter understand professional responsibility and the firm’s exposure.
Identify what is delegated, who contracts with whom, billings and how evidence of insurance is collected. A subconsultant’s policy does not by itself erase the primary firm’s contractual obligations.
How should a firm choose its professional liability limit?
Start with contract requirements and project exposure, then compare available policy limits and how defense expenses affect them.
Per-claim and aggregate limits answer different questions. A requested limit is not confirmation the whole contractual obligation is insured. Consider multiple claims, prior work, exclusions, sublimits and the cost-sharing obligation stated in the policy.
What to send for an agent review
Provide the project contract, participating firms, schedule, services and required insurance period. A separate project limit does not establish that all parties or all duties are insured.
The policy form, endorsements and reported facts control coverage. This comparison is educational; it is not an underwriting decision, a carrier ranking or legal approval.
Frequently asked questions
Can professional liability be arranged for a single project?
Project-policy options exist, but availability and terms depend on the project and participating firms.
Why does the application ask about subconsultants?
Subconsulted services and insurance arrangements help the underwriter understand professional responsibility and the firm’s exposure.
How should a firm choose its professional liability limit?
Start with contract requirements and project exposure, then compare available policy limits and how defense expenses affect them.
What are the sources?
- Design Professional Liability — The Hartford
- Architects & Engineers Professional Liability — GUARD
- 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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