Program Features & Coverage Enhancements

Here’s a snapshot of the program features of the Professional Liability Insurance Program for Surveyors and Engineers: Full Retroactive Coverage is automatic. No retroactive date for expiring policy with full Prior Acts coverage. Two Year Policy Option with the ability to lock in the rates and coverage for a 24-month period but still pay the premium annually. Broad Definition of Insured:  The Definition of Insured includes:

• The Named Insured
• Any present or former partner, officer, director, shareholder or employee of the;
  • Named Insured
  • Any predecessor company or partner for the named Insured or as a consultant for the Named Insured;

while acting within the scope of their duties for the Named Insured or as a consultant for the Named Insured.

• Any individual or personal corporations employed by the Named Insured under a professional services contract or personal services agreement and employees of others on loan to and while working for and under the guidance of the Named Insured
• Any partnership, firm or corporation acquired or in the process of acquiring a/o merged or in the process of acquiring
• Joint Venture or consortium arrangement
• Estate of Insured.

Split Damage Deductible. The insurer and the insured shall contribute equally towards damages until the Insured has paid the deductible as stated in the Insureds declarations.

• Example #1: if the loss is $8,000, and the deductible is $5,000, then the surveyor and the insurer will “split” the loss and each contribute $4,000 towards the claim.  Without this clause, the surveyor would have to contribute $5,000 and the insurer would contribute $3,000.
• Example #2: if the loss is $20,000, and the deductible is $5,000, then the surveyor pays the full deductible of $5,000; and the insurer pays the $15,000 balance of the loss.

Aggregate Deductible.  The most the insured will pay in deductible in the annual policy year is twice the deductible amount.

• Example:  if the deductible is $5,000 the most the surveyor will pay in any one policy year is $10,000, regardless of the number of claims.

First Dollar Defence. The deductible does not apply to defence costs, even if no indemnity payment are made in conjunction with a claim. The Insurer will pay all expenses and defence costs without the Insured incurring a deductible. Difference in Conditions feature provides coverage if there are differences in the limits and deductibles between the Professional Surveyors Canada policy and any other policy that would respond to a claim. Supplementary Payments – Claim Reimbursement Expenses. All expenses the Insurer incurs to investigate, defend, settle, mediate, arbitrate or litigate a claim covered by the Policy. Includes costs and fees for the hiring or investigators, adjusters, experts, consultants, arbitrators, mediators, lawyers and court and arbitration costs and costs for the attendance of witness other than the Insured. This includes a separate sub-limit for reimbursement for expenses incurred by you for your attendance at discoveries, mediation and trial up to $50,000 per policy period. Limits of Insurance are available up to $5,000,000 per claim with a $6,000,000 aggregate.  Claims Expenses will be paid in addition to the limits of liability and will not erode your overall Policy limits.  No maximum limit on Defence Costs. Estate Coverage is automatic under this program, with no extra premium charged. Worldwide Coverage is automatic for professional services rendered anywhere in the world. Engineering Coverage is included under the same Policy for consulting engineering services and surveying services, subject to some conditions. (Engineering services should not exceed 25% of the total firms overall revenue) Project Specific or Client Specific coverage is available. Instead of increasing the Insureds total limits of liability an Insured can increase their limits of liability for a specific project or client. Cyber Security and Privacy Liability coverage includes infringement, remediation expenses, security breach expenses, privacy breach expenses and data personal injury associated with the performance of the Insureds Professional Services up to $250,000.

Additional Coverage Enhancements

The PSC Program Policy will provide the following enhanced coverages up to each of their respective sub-limits.  Up to an annual aggregate of $250,000, the following sub-limits are in excess of the limit of liability.  Once the annual aggregate of $250,000 has been exhausted, the individual sub-limits still apply however, they will erode the overall limit of liability. Occupational Health and Safety coverage provides Reimbursement for your legal expenses incurred in your defence of a proceeding against you under the Occupational Health & Safety Legislation up to $50,000. Disciplinary Action coverage for legal expenses incurred in defence of a disciplinary action brought against you up to $50,000. Loss of Documents coverage for reimbursement of expenses incurred in replacing and/or restoring such documents that have been destroyed, damaged, lost of misplaced up to $100,000. Breach of Confidentiality coverage provides supplementary payment which you become obligated to pay as damage as a result of an inadvertent breach of confidentiality arising out of your Professional Services up to $250,000. Libel and Slander coverage provides supplementary payments, which you become obligated to pay as damages as a result of unintentional libel or slander uttered or published by you arising out of your Professional Services up to $250,000. Unauthorized Practice coverage provides reimbursement for costs, charges and expenses incurred in defending actions, suits, charges, or proceedings against you before tribunals, courts, or boards of governance involving allegations of the rendering of services, which are not customary to the Profession of a Land Surveyor up to $50,000.

Retirement or Sale of Business Coverage

Retirement/ Sale of Business Coverage is available to all firms and/or individuals who have been Insured with the PSC Program for 5 consecutive years upon sale of their firm or retirement from practice. The retirement policy provides the same protection as the original Errors and Omissions policy, but is designed for inactive individuals and/or firms, and will respond to claims first presented during the Retirement Period, resulting from professional services rendered prior to the date that Retirement/Sale of Business coverage incepts. Pricing for the Retirement/ Sale of Business Coverage is as follows:

• 1 year run-off at current limit on insurance = 75% last annual premium
• 2 year run-off = 100% of last annual premium
• 3 year run-off = 125% of last annual premium
• 4 year run-off = 150% of last annual premium
• 5 year run-off = 180% of last annual premium
• 6 year run-off = 195% of last annual premium

After chosen run-off period expires, the coverage converts to a free retirement policy of $500,000 per claim / $1,000,000 policy aggregate. The policy is Continuous Coverage (no expiry date). No Deductible will apply. For more information on the retirement or sale of business coverage, please click here.

Determination of Premiums

Premiums are based on an equitable formula derived from actual surveying claims statistics and developed by the PLIC and the Broker.  The premium rating factors are as follows:

• Revenue (overall revenue, construction related revenue, engineering revenue)
• Number of land surveyors
• Limit of insurance
• Claims experience.

Questions? Contact Gallagher, our broker for the Professional Liability Insurance Program for Surveyors and Engineers.