For a $5 million to $75 million architecture or engineering firm, the largest liability can come from a drawing, calculation or recommendation delivered years earlier. A coordination conflict, structural assumption, electrical design, drainage calculation, specification, geotechnical recommendation or construction-administration decision can become part of a multimillion-dollar delay or rework dispute. The insurance program therefore has to follow the professional services — not merely the office and employees.
✓Professional Liability (E&O)
✓Claims-Made Coverage
✓Discipline-Based Underwriting
Reviewed by David Gleason, Principal — October 11, 2026
CaliforniaGeneral information only, not legal advice — illustrative scenarios and coverage, subject to change without notice. Content may be out of date or contain errors, and requirements vary by city, county, state, agency, project, contract, carrier and policy, among other factors; verifying what applies to your own situation is your responsibility. Full disclaimer
Interactive coverage guide
Build a coverage stack around how the business actually operates.
Start with the preselected industry or trade, then adjust the operational questions. The commonly considered stack updates live. Keep the coverages you want GIB to evaluate, remove ones you do not want included in your quote request, and add other available lines before continuing.
Common Starting Coverages
General LiabilityThird-party injury and property damage
What it is
General Liability commonly addresses covered third-party bodily injury, property damage and certain personal or advertising injury claims, subject to the policy.
Why businesses like yours commonly carry it
Businesses commonly use it as a starting liability policy and to satisfy customer, landlord or contract requirements.
Possible coverage gap
General Liability is not intended to replace policies for employee injuries, business vehicles, owned property, cyber events or professional errors.
Cyber Liability & Data BreachCyber events, data and system interruption
What it is
Cyber insurance may address certain first-party and third-party losses from covered data breaches, cyberattacks, ransomware and system interruption, depending on the policy.
Why businesses like yours commonly carry it
Design firms commonly store client plans, project records and professional work product in connected systems.
Possible coverage gap
General Liability generally should not be assumed to address data breach response, ransomware or network interruption.
Business Owners Policy / Commercial PackageLiability and property components evaluated together
What it is
A Business Owners Policy commonly combines liability and property coverages for eligible businesses. A Commercial Package Policy may combine multiple commercial coverage parts depending on the account and carrier.
Why businesses like yours commonly carry it
Businesses with premises, contents, inventory or other property exposures may ask GIB to evaluate whether liability and property components can be packaged where appropriate.
Possible coverage gap
Eligibility, included coverages and package structure vary by carrier. Commercial Property may also be written separately rather than as part of a package.
Educational guidance only. Results are not a coverage recommendation, quote, binder, policy interpretation, or guarantee of coverage. Actual needs, availability, forms, limits, exclusions and requirements vary. A licensed insurance professional should review the complete risk and issued policy terms.
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What contractors say about us
5.0 / 5from 7 Google reviews
Reviews reflect individual client experiences and are not a guarantee of coverage, pricing or results.
91 Enterprise LLC
March 24, 2026
We are using Gleason insurance for our commercial auto policy and GL policy. David is the best insurance broker I've worked with — very honest, responsive, and knowledgeable. Highly recommend.
Fito Plumbers
February 20, 2026
We have been working with David at Gleason Insurance Brokers for 8+ years. David always goes above and beyond to make sure we have the appropriate coverages. He explains everything in detail and makes sure we feel confident and understand all of our policies. He is always available and responds right away!
Barry Stay
February 17, 2026
David provides great service and I highly recommend him for your insurance needs.
Professional Liability Is the Center of the Program
A&E professional liability is generally claims-made. Retroactive dates, prior acts, pending/prior knowledge, circumstance reporting, defense provisions, consent to settle, retentions and aggregate limits all matter.
Larger firms should also evaluate project-specific excess or dedicated project coverage when one job could consume a large share of the annual aggregate.
A&E professional liability is generally claims-made
Larger firms should also evaluate project-specific excess or dedicated project coverage when one job could consume a large share of the annual aggregate
California Discipline Matters
California's BPELSG distinguishes engineering disciplines. Civil, Electrical and Mechanical are practice-act branches; Structural and Geotechnical are title authorities tied to Civil Engineering. Insurance underwriting should follow what the firm actually stamps and performs.
The submission should split revenue by discipline, project type and delivery method. Firms whose work is the soil, the groundwater or the remediation plan sit in a different underwriting conversation from building designers — environmental engineering practices are commonly rated on pollution and professional exposure together rather than on design liability alone.
Civil, Electrical and Mechanical are practice-act branches; Structural and Geotechnical are title authorities tied to Civil Engineering
Insurance underwriting should follow what the firm actually stamps and performs
The submission should split revenue by discipline, project type and delivery method
Contracts Can Create Uninsurable Obligations
Large design agreements may include heightened standard of care, broad indemnity, duty to defend, warranties, fitness-for-purpose language, consequential damages, liquidated damages, uncapped liability, BIM obligations and cyber requirements.
Insurance does not automatically back every promise. Contract review is part of risk control.
Insurance does not automatically back every promise
Contract review is part of risk control
Commercial Project Mix Drives Severity
Hospitals, high-rise, data centers, utilities, water/wastewater, industrial work, bridges, large multifamily, schools and design-build can create different loss potential. Largest project cost and largest fee should be shown to the underwriter.
Largest project cost and largest fee should be shown to the underwriter
Design-Build and Contractor Clients
Engineers working directly for contractors may face schedule pressure, delegated design, shop-drawing disputes, constructability allegations and cost-driven redesign. Carrier appetite can change based on design-build percentage.
Carrier appetite can change based on design-build percentage
Subconsultants
Prime firms should manage professional limits, retro dates, contracts, scope, quality control and renewal continuity for structural, MEP, civil, environmental, geotechnical and specialty subconsultants.
Professional limits carried by each subconsultant
Retroactive dates, and whether they reach back far enough
Written contracts and a clearly defined scope
Quality control, and continuity of cover at renewal
Structural, MEP and civil subconsultants
Environmental, geotechnical and specialty subconsultants
Cyber and Digital Design
A&E firms hold BIM/CAD models, client credentials, confidential plans, employee data and project financial information. Cyber should address ransomware, restoration, network interruption, privacy and funds transfer. Tech E&O can matter when the firm supplies software, monitoring or digital platforms.
A&E firms hold BIM/CAD models, client credentials, confidential plans, employee data and project financial information
Cyber should address ransomware, restoration, network interruption, privacy and funds transfer
Tech E&O can matter when the firm supplies software, monitoring or digital platforms
Field Operations and Casualty
Site observation, inspection, surveying, testing and commissioning create workers compensation, GL, auto/HNOA and umbrella exposure beyond the professional policy.
Site observation, inspection and surveying
Testing and commissioning work performed in the field
Workers compensation exposure for staff on site
General liability beyond the professional policy
Auto and hired/non-owned auto for site travel
Umbrella exposure sitting above all of it
Management Liability
D&O, EPLI and fiduciary become more relevant as firms add shareholders, acquisitions, PE investment, larger employment populations and succession planning.
D&O, EPLI and fiduciary become more relevant as firms add shareholders, acquisitions, PE investment, larger employment populations and succession planning
Lines we place for architecture and engineering firms
A design firm answers for the drawings and reports it stamps, which puts a different line at the center of the program than a builder would carry. These are the ones that come up most often for California architecture and engineering practices. Terms depend on the discipline, the project mix, the contracts signed and the loss history.
Send the disciplines practiced, the project mix, the contracts in question and any current loss information — request a design firm quote. Coverage is not bound by submitting a request.
Professional liability and errors & omissions — the center of a design firm’s program, responding to allegations arising from professional services
General liability — premises and field exposure, which professional liability does not address
Workers compensation — required for employees, including staff visiting active sites
Professional liability is usually central, with cyber, GL, workers compensation, auto/HNOA, umbrella, EPLI and D&O commonly evaluated.
How much professional liability should a firm carry?
Limits should reflect project severity, contracts, revenue, largest project and risk tolerance.
Why does the retroactive date matter?
Claims-made coverage can depend on when services were performed and when the claim is made/reported.
Does professional liability cover contractual warranties?
Not automatically. Warranties and guarantees can create obligations broader than the professional standard of care.
Are subconsultant errors covered?
The prime may still face allegations, so subcontracted professional services and subconsultant insurance should be reviewed.
Does an engineering firm need cyber insurance?
Often yes because design files, client systems, email and project data create material cyber exposure.
What makes design-build harder to insure?
The designer can become more exposed to schedule, cost and construction-interface disputes.
Can a firm buy project-specific professional liability?
Sometimes, subject to project type, limits and market appetite.
Official resources
Verify current licensing, regulatory and program requirements directly with the responsible agency — this is general information, not legal advice, requirements change without notice, and what is summarized here may be out of date or contain errors. Confirming what applies to your own city, project, contract and policy is your responsibility.
