Why Standard E&O Falls Short for Architects and Engineers

— And What Brokers Should Look For

Published by SPG Canada | February 2026

Every building, bridge, and public space in Canada starts with a design professional. And with that work comes significant professional liability exposure — exposure that standard Errors & Omissions policies often don’t fully address.

Canada’s architectural services industry is valued at $6.6 billion, and engineering services generated $43.3 billion in operating revenue in 2023 — growing 6.6% in 2024. With the federal government committing approximately $280 billion in infrastructure investment over the next five years, including $51 billion for the Build Communities Strong Fund, the volume of work and the complexity of risk are only increasing.

The Long-Tail Problem

For architects and engineers, professional risk doesn’t end when construction begins. A design error made during the planning phase may not surface for months — or even years — after a project is complete. Water intrusion from improper sealing, structural issues from foundation miscalculations, or code non-compliance discovered during a future renovation can all trace back to decisions made at the drawing board.

This is what the industry calls “long-tail exposure,” and it’s one of the reasons most A&E professional liability policies are written on a claims-made basis. Continuous coverage isn’t just recommended — it’s essential. But having coverage is only half the equation. What the coverage actually includes matters just as much.

Where Standard E&O Leaves Gaps

Standard professional liability policies frequently exclude or heavily sub-limit exposures that are fundamental to design practice:

• Pollution and environmental liability — standard policies typically exclude pollution entirely. But when a design professional provides negligent advice that leads to a pollution event, they need protection.
• Asbestos and mold — similar to pollution, these are often blanket-excluded. For architects working on renovations or heritage buildings, this creates a significant gap.
• Intellectual property infringement — design-driven practices face increasing risks around copyright, trademark, plagiarism, and failure to attribute authorship.
• Joint ventures and consortiums — many A&E firms participate in joint ventures, sometimes through separate legal entities. Standard policies often exclude this.
• Defence of criminal proceedings — proceedings under building, health, and safety legislation are a real risk for design professionals.

These aren’t edge cases. They’re everyday realities for architects and engineers across Canada.

What Brokers Should Look For

When placing professional liability for A&E clients, brokers should look beyond the headline limit and examine what’s actually included in the wording. Key questions to ask:

• Does the policy include pollution, asbestos, and mold carve-backs for professional negligence?
• Is intellectual property infringement covered — including plagiarism and design rights?
• Does joint venture coverage extend to work conducted through a separate legal entity?
• Are defense costs for criminal proceedings under building and safety legislation included?
• Does the policy offer loss mitigation costs and reputation protection?

SPG Canada’s Approach

SPG Canada has developed Architects & Engineers Professional Liability coverage purpose-built for design professionals. Our wording includes pollution, asbestos, and mold carve-backs for professional negligence, intellectual property rights infringement protection, joint venture coverage, and a suite of value-added extensions — loss mitigation costs, disciplinary proceedings defense, attendance expenses, reputation protection, and more — all included as standard, not as add-ons.

Every policy is backed by Specialty Claims Canada, our claims management company with delegated authority from both Canadian and London-based market partners. That means faster claims decisions and direct broker access to the claims handler managing each file.

The Bottom Line

The A&E insurance market continues to harden, with insurers becoming more selective and premiums rising — particularly for higher-risk disciplines like structural and geotechnical engineering. For brokers, having access to a specialty market that understands the nuances of design professional risk isn’t just helpful — it’s a competitive advantage.

For architects and engineers, the question isn’t whether they need professional liability. It’s whether their current coverage is designed for the real-world risks they face.

To learn more about our A&E Professional Liability coverage, reach out to your SPG Canada underwriter or visit spgcanada.ca