What does professional liability insurance cover?

• A. Covers the salaries of employees
• B. Covers the physical property of the firm
• C. Covers the costs of legal defense unrelated to professional mistakes
• D. Covers the cost of mistakes made by the Architect, as well as disciplinary, regulatory, and administrative expenses (e.g., OSHA violations); Also called 'errors and omissions' insurance

Answer: (D)

Professional liability insurance covers the financial impact of mistakes in the architect’s professional services. It pays for defense costs, settlements, and judgments that arise from claims of negligence, errors, or omissions in design and related professional work. This coverage is commonly referred to as errors and omissions insurance and can include disciplinary, regulatory, and administrative expenses tied to professional practice. It does not cover salaries, physical property, or legal costs that aren’t connected to professional mistakes.