Which type of liability insurance covers the work performed by architects and engineers?

Professional liability insurance is specifically designed to protect professionals such as architects and engineers from claims arising from negligence, errors, or omissions in their work. This type of insurance is vital in the design and construction industry because it provides coverage for the unique risks that arise from professional services. It addresses issues such as design flaws, inadequate plans, or failure to meet professional standards, which can lead to financial losses for clients.

In contrast, builder's risk insurance primarily covers the physical structure during construction against risks like fire or theft and does not extend to the professional services provided by architects and engineers. Commercial general liability insurance focuses on third-party bodily injury and property damage claims, which does not cover the specific professional risks associated with design and engineering work. Performance bond insurance ensures that a contractor will fulfill their contractual obligations, but it does not provide coverage for professional liability issues.

Therefore, professional liability insurance is the most appropriate type of coverage for architects and engineers, as it specifically addresses the risks associated with their design and consulting services.