506.05

Professional Liability Insurance

Requirements

If architects, engineers, or other licensed design professionals perform services for the Construction ActivityConstruction ActivityConstruction, renovation, or restoration of Improvements:  beginning on the Construction Activity Start Date; and ending on the Construction Activity Completion Date., you must ensure: 

  • professional liability coverage is maintained from the date professional services for the Construction ActivityConstruction ActivityConstruction, renovation, or restoration of Improvements:  beginning on the Construction Activity Start Date; and ending on the Construction Activity Completion Date. begin through the later of the:
    • completion of all professional services related to the Construction ActivityConstruction ActivityConstruction, renovation, or restoration of Improvements:  beginning on the Construction Activity Start Date; and ending on the Construction Activity Completion Date.; or 
    • Construction Activity Completion DateConstruction Activity Completion DateThe later of the date when:  substantial completion is achieved; or  any required certificates of occupancy, licenses, or permits required by applicable law following completion of the Construction Activity are issued.  ; 
  • coverage limits are at least 
    • $1 million per claim or per occurrence, and 
    • $2 million general aggregate; and
  • any Claims-Made Policy includes a retroactive date preceding the Construction Activity Start DateConstruction Activity Start DateThe earlier of the date:  physical work at the Property commences; or  delivery of materials (whether located onsite or offsite) intended to be used in the construction of Improvements occurs. .

If the BorrowerBorrowerPerson who is the obligor per the Note. changes its coverage from a Claims-Made Policy to an Occurrence-Based Policy, you must ensure the BorrowerBorrowerPerson who is the obligor per the Note. obtains retroactive or tail coverage to ensure past exposures remain protected.