Understanding Terra RRG Professional Liability Insurance

Abstract

Terra RRG is a Vermont‐based corporation that underwrites professional liability insurance for consulting engineers and engineering firms in private practice whose practices are concentrated in the geosciences. A descriptive review of the professional liability insurance coverage provided by the Terra Insurance Company is presented. Terminology unique to the professional liability insurance industry is defined and numerous examples are used to help clarify particularly important and difficult concepts. In light of the escalated importance of professional liability insurance in today's consulting engineering practice, dissemination of this type of information to employees should be an essential part of a firm's loss‐prevention‐education program. By understanding the coverage provided, employees will be able to assist in limiting the firm's exposure to losses by not accepting risks for which they have no protection. Additionally, educated employees will be able to provide information to clients who are not aware of the limitations associated with professional liability insurance and its appropriate role in the conduct of the consulting engineering business.