The Limits of Standard Coverage
From contract disputes to design omissions, the risks that design professionals face are specific and far-reaching. A single misstep can trigger a six-figure claim, and without the right errors and omissions insurance (E&O) coverage in place, the financial fallout can be devastating.
Many firms understand that general liability and property insurance aren't designed to address the risks inherent in professional services, but gaps in coverage still emerge far too often. General liability responds to third-party bodily injury or property damage unrelated to design work, and property insurance protects physical assets. Neither is structured to address the core exposures architects and engineers face. These often include:
- Design errors or omissions.
- Project delays resulting in financial loss.
- Contractual liability and cost overruns.
- Inadequate defense coverage in the face of legal action.
Even for well-established firms, seemingly minor policy exclusions or assumptions can result in significant uninsured exposure, particularly when legal costs escalate or project stakeholders seek to shift blame. That’s why aligning coverage with your firm’s actual service delivery model and contractual risk is critical.
“Professional liability exposures are unique to the services architects and engineers provide,” says Tyler Dunsmore, vice president of business insurance at NFP. “You need protection that’s just as specialized — and that means a purpose-built errors and omissions insurance policy with carefully negotiated wording.”
Why Wording Matters
Unlike general liability policies, which tend to follow standardized language across carriers, errors and omission insurance policies vary widely from one insurer to another. Even policies that look nearly identical at a glance can carry vastly different terms, conditions and exclusions.
“A small change in language can make a huge difference in how a claim is handled,” Dunsmore explains. “We’ve seen E&O insurance policies with exclusions that could be catastrophic for engineers — and most generalist brokers wouldn’t know to look for them.”
For example, some policies contain exclusions or limitations that can materially impact coverage, such as restrictions on subcontracted professional services, broad pollution exclusions that extend beyond regulatory exposures or retroactive date limitations that eliminate protection for past work.
These issues are especially relevant for firms involved in design-build projects, geotechnical services or environmental consulting. Navigating these nuances requires a broker with deep expertise — someone who understands not just policy language, but how it aligns with project delivery, contractual obligations and the claims realities architectural and engineering firms face.
Supporting Firms at Every Stage
Whether you’re a large multi-disciplinary firm looking to reduce premiums and broaden coverage or a smaller start-up navigating your first policy, NFP has the experience and market reach to support you. Our team:
- Offers exclusive errors and omissions insurance programs not available elsewhere.
- Provides insurance-related contract reviews to help limit exposure.
- Conducts deep dives into your operations to ensure policies match your risk profile.
- Has access to every major Canadian E&O insurance carrier, as well as options outside of Canada.
- Can structure comprehensive insurance programs, including directors and officers coverage, general liability, property, cyber and more.
“Our goal is to secure the right wording at the most competitive price,” Dunsmore adds. “Although we have some great exclusive options, we’re not tied to any one program. We place business where it best fits the client’s needs.”
Protect Your Business with Confidence
At NFP, we specialize in professional liability coverage for design professionals across Canada. Our team understands the complexity of your work, the intricacies of policy wordings and the claims realities that architects and engineers face.
If you’re reviewing your current errors and omissions insurance policy or simply want to explore your options, our experts are here to help you build coverage that supports your long-term success — on your terms.