Professional Liability Insurance, also known as Errors and Omissions (E&O) insurance, is the specific coverage that protects architects and other design professionals against claims of negligence, errors, or omissions in the performance of their professional services. This policy covers the architect's legal defense costs and any damages awarded if they are found to be at fault for a design flaw or other professional mistake that results in financial loss or harm to the client or a third party. It is a fundamental component of risk management for any architectural practice.

A. Builder’s Risk Insurance: Covers physical damage to the building and materials during construction; it does not cover the architect's professional errors.

C. General Liability Insurance: Covers claims of bodily injury or property damage resulting from the firm's general operations, not from professional negligence in design.

D. Workers’ Compensation Insurance: Covers medical expenses and lost wages for employees injured on the job, as required by state law.

1. Demkin, J. A. (Ed.). (2013). The Architect's Handbook of Professional Practice (15th ed.). John Wiley & Sons. Chapter 9.4, "Types of Insurance," specifically describes Professional Liability Insurance as coverage for "claims arising out of an architect’s negligent acts, errors, or omissions in the performance of professional services" (p. 818).

2. The American Institute of Architects. (2017). AIA Document B101™–2017, Standard Form of Agreement Between Owner and Architect. Article 2.5, "Insurance," requires the architect to maintain specific insurance policies, including Professional Liability, to cover claims arising from the architect's negligent acts, errors, or omissions.

3. University of Minnesota, School of Architecture. (n.d.). Arch 5511 - Professional Practice. Course materials on Risk Management. The curriculum specifies that Professional Liability Insurance is the primary mechanism for architects to manage the financial risk associated with claims of negligence.