Architects & engineers professional liability (A&E)
As the construction industry pursues a high-growth trajectory, design professionals are taking on more and different scopes of work. Project values and complexity are increasing, with data centers and infrastructure leading the way. Both owners and contractors are pushing their design partners to take more risk, reviving interest in project-specific professional liability insurance to protect corporate practice programs. Combined with continued topline revenue growth across their business, both organically and via acquisition, the increased risk is driving firms to reconsider their corporate limit adequacy.
Though demand for higher insurance limits is growing, especially in the United States, capacity is abundant. Large firms can still obtain the limits they seek, even when looking for drastic changes to their overall towers.
CORPORATE PROGRAMS
Rates for A&E policies are generally renewing flat or with low single-digit increases with incumbent carriers, assuming no organizational changes. That said, retentions are rising along with firm growth, allowing for some efficiencies in rate for many firms. Terms and conditions in this segment are stable.
For firms with favorable loss histories that have not tested the market in recent years, competition has been prevalent. Multiple carriers are aggressively seeking to unseat incumbents when risks fit their appetites.
Loss drivers for architects and engineers have not significantly changed, but underwriters are looking at losses in more detail. Specific areas of scrutiny include design firms’ risk management practices, the use of artificial intelligence and controls in place for it, and mergers and acquisitions strategy and resources. With rapid ongoing consolidation among design firms, underwriters are focusing on due diligence practices, historical losses of target firms, and how firms are integrating their operations.
PROJECT-SPECIFIC PROGRAMS
As has been the case for many years, the project-specific A&E market remains limited. Though there were no major exits in 2025, carriers have not looked to expand limits being offered. With premiums remaining elevated, including in excess layers, we are seeing increased interest from and more placements utilizing wholesale brokers and the domestic excess and surplus lines markets.
Terms and conditions for project-specific programs remain stable. The biggest challenges are vetting capacity on mega projects with multiple phases, for which carriers prefer not to stack limits across phases/clients, and finding coverage through the statute of repose. Some carriers are seeking to limit policy term plus extended reporting period length to 10 years overall; longer terms are achievable, but with restricted capacity.
