California Supplemental (CSE) Practice Exam

What type of insurance protects architects against errors and omissions?

1. Automobile Liability Insurance

2. Professional Liability Insurance

3. Workers Compensation Insurance

4. General Liability Insurance

The correct answer is: Professional Liability Insurance

Professional Liability Insurance is specifically designed to protect architects and other professionals from claims related to errors and omissions in their work. This type of insurance covers the costs associated with legal defense and any settlements or judgments that may arise from claims alleging negligence, failure to perform, or mistakes in the design process. Architects face unique risks due to the complexity of their projects and the potential for costly mistakes that can lead to financial losses for clients. Professional Liability Insurance provides essential financial protection against such risks, ensuring that architects can defend themselves against claims and continue their practice without facing crippling financial consequences. In contrast, the other types of insurance listed serve different purposes. Automobile Liability Insurance is intended to cover damages or injuries resulting from automobile accidents. Workers Compensation Insurance provides benefits to employees injured on the job, covering medical expenses and lost wages. General Liability Insurance protects businesses from claims of bodily injury or property damage but does not specifically cover professional negligence or errors related to the professional services provided by architects.