By Barbara Block
Vice President, Supervising Underwriter
Berkley Design Professional, a Berkley Company
June 6, 2023
Retirement for a design professional doesn’t just happen, it takes careful planning and preparation. Having a transition plan, a buy-sell agreement, successor development and planning are all considerations, but one area retiring professionals may overlook is having adequate professional liability coverage.
Given the current climate of increasing litigation, simply relying on the design professional’s prior firm to maintain their professional liability insurance policy in addition to having necessary limits to protect their assets in retirement is not necessarily the best or safest option.
When it comes to professional liability coverage for architects and engineers, claims don’t just occur when the project is underway. Claims can arise years after the project is complete and if the design professional is no longer a named insured under their prior firms’ policy, problems can occur.
Whether a design professional is planning a traditional retirement or changing fields, excess coverage for retired design professionals can provide greater peace of mind by offering coverage to protect them individually in the event of a professional liability claim.
Berkley Design Professional’s coverage applies as excess of a prior firm’s professional liability insurance policy, or in the event that a prior firm did not maintain their coverage, this policy will apply as excess of the deductible chosen for the policy. The prior firm does not have to be a Berkley Design Professional policyholder to take advantage of this coverage.
There are two limit and deductible options available and the policy terms available are from one to 12 years depending on the Statue of Repose for the retiree’s state.
Design professionals have many moving parts to coordinate when retiring and should talk with their insurance broker and the new leadership of their firm to ensure there is adequate coverage. For more information about this coverage, read our retired design professional liability overview or contact your underwriter.
About the Author
Barbara Block is vice president, supervising underwriter at Berkley Design Professional, a Berkley Company. She has nearly 35 years of experience in the A/E professional liability insurance industry, with 18 of those years as an underwriter. Barb has been with Berkley Design Professionals since 2013. Contact Barbara at [email protected]
