Professional Indemnity Insurance for Designers of Main and Special Drawings
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Professional Indemnity Insurance for Designers of Main and Special Drawings?
Designers are required to purchase and maintain professional indemnity insurance in accordance with the Building Act No. 160/2010. Professional indemnity insurance for licensed designers of main and special drawings is intended to compensate for general financial damage arising from projects underlying the design of structures.
What Is Covered?
Liability for financial loss to a third party caused by the insured designer’s work on drawings submitted to the building committee, for which they assumed responsibility by endorsement.
What Is Not Covered?
Losses caused intentionally by the insured or their employees.
Losses resulting from liability that the insured assumes which exceeds their legal liability as a designer under their license.
Fines or other penalties imposed on the insured or a third party.
Bodily injury or damage to property.
Activities of the insured outside Iceland, or liability for damages that exceeds Icelandic rules on the basis for compensation or the determination of compensation amounts.
Are there any restrictions or precautionary rules?
The insured is required to comply with Vörður's precautionary rules.
Where is the insurance valid?
The insurance covers only damage that occurs in Iceland as a result of the insured’s work in Iceland.
What are the insured's obligations?
Provide all necessary information, whether at renewal, when making changes to the insurance, or when submitting a claim.
When an insured event has occurred, or there is a risk that it may occur, the insured is obligated to attempt to prevent or minimize the loss.
The insured shall provide the company with any information and documents in their possession or that they can obtain which the company needs to assess its liability and pay compensation.
As soon as the insured becomes aware of or suspects that a claim for damages may be made against them, they must notify the company in writing.
If there are changes to circumstances or information previously disclosed to the company in the insurance application or otherwise, the policyholder must inform the company of such changes.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.