Through Victor's Architects & Engineers program, eligible design firms with billings up to $1M can choose a multi-year policy that offers continuous coverage with fixed annual premiums and reinstatement of limits, eliminating the need for annual renewals.
What are multi-year policies and how can they benefit policyholders?
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Multi-year professional liability policies explained:
Multi-year professional liability policies are designed to provide coverage for design professionals over an extended period, typically spanning multiple years. Unlike standard professional liability insurance, which is usually issued on an annual basis, multi-year policies offer continuous coverage for a specified duration, often ranging from two to three years.
Key benefits of multi-year professional liability policies include:
- Stability in premiums: By locking in premiums for multiple years, insureds can avoid the fluctuations in costs that often accompany annual renewals. This can lead to more predictable budgeting for insurance expenses.
- Reduced administrative burden: With a multi-year policy, insureds do not need to go through the renewal process each year, which can save time and reduce administrative workload.
- Peace of mind: By opting for multi-year policies, with fixed annual premiums and reinstatement of limits, insureds can focus on growing their firms without the stress of increased costs and the hassle of frequent renewals.
See this policy feature in action
A design professional holds a professional liability policy with a per claim limit of $1,000,000 and an aggregate limit of liability of $1,000,000. To enhance their coverage, the design professional made the decision to purchase a three-year policy. This provides them with $1,000,000 per claim/$1,000,000 annual aggregate policy limit that reinstates at each anniversary.
Being able to evidence a three-year policy to their clients indicates their stability. Continuous insurance exemplifies a steadfast firm while also providing comfort level in the face of a claim. It also allows ease of work between them and their clients, as certificates can be evidenced quickly without any back and forth.
Claim example
During the first term of the three-year policy, the firm incurs a $100,000 claim. Given the $1,000,000 per claim and $1,000,000 annual aggregate limits, the firm’s available coverage is reduced by $100,000 for the remainder of that policy year.
However, at the policy’s first anniversary, the limits fully reinstate to $1,000,000 per claim and $1,000,000 annual aggregate, allowing the firm to issue certificates of insurance on the same terms as the prior year. The firm’s premium remains unchanged throughout the policy term and will be adjusted to account for the claim at the end of their three-year policy term.
To learn more, email design.us@victorinsurance.com or connect with your business development contact.
