This option provides coverage for any present or past employee, officer, director, stockholder, or partner of the firm if acting under the scope of his/her duties. It also covers leased personnel under direct supervision as well as retired partners, officers, directors, and employees (while acting as consultants).

Professional Liability Insurance: Former Partners Clause

When engineers and architects work in a collaborative effort or are involved with an agency, they need to look into having their own professional liability insurance policy. This insurance policy should carry with it some added clauses for which to protect the insured. One of the clauses is for former partners.

This insurance amendment is for use when the engineer is working with a team of engineers on a project. This can be in the form of a collaborative effort or through an agency where they are employed. In the event that one engineer is fired, or goes to another agency, and a suit comes through, this type of amendment clause will protect all partners equally.

For example, a building that an agency worked on had some mechanical failures and caused injury to several people. These injuries amounted to a total of $200,000 in medical costs. With the former partners attachment to a liability insurance policy the engineers that are covered, are not liable for this amount.

This also applies for the partner who is no longer working with the firm or agency. If they have this type of insurance clause on their personal policy, they will not have to face the amount of damages. The cost of this type of coverage is going to run several thousands more per year in premium costs, but is worth the extra investment.

Engineers and architects work in environments where they are constantly working in groups. Many firms require that teams get together and work on specific projects in order to do the best work. With a former partners clause attached to each individual insurance policy, they can work with much greater confidence on the project knowing that they will not be liable for any damages, neglect or anything else.