Short Answer
Some professional liability policies define covered professional services as work performed under a written contract or agreement. Whether an email, purchase order, or informal approval satisfies that written contract requirement depends on the specific policy wording, the facts of the engagement, and applicable law. This is not something a firm should assume one way or the other. It should be confirmed with the broker or carrier before relying on it.
Why written contract language matters
Many A&E firms start smaller projects quickly, sometimes based on nothing more than a client's go-ahead by email or text. If the policy's professional services definition is tied to a written contract requirement, the way that project was authorized can matter later if a claim arises from the work.
This provision exists because carriers price and underwrite coverage partly based on the assumption that engagements are documented. A firm that regularly works without formal signed agreements may be operating with more uncertainty about coverage than it realizes.
Signed formal contract versus accepted proposal
A fully signed contract, executed by both parties before work begins, is the clearest case and generally satisfies a written contract requirement. An accepted proposal, where a client signs or otherwise confirms acceptance of a written proposal, is often treated similarly, though this depends on how the policy defines "written contract" and whether the proposal itself contains the necessary terms.
Email authorization
An email approval, such as a client writing "please proceed," is less clear. It may or may not satisfy a written contract requirement, depending on the policy's specific wording and how courts in the relevant jurisdiction have treated similar communications as forming a contract. This is a question that depends on facts and law, not something a general article can answer definitively for every situation.
Purchase order
A purchase order is a written document, but whether it functions as a "contract or agreement" for purposes of a specific policy depends on what it actually contains and how the policy defines the term. Some purchase orders reference detailed terms and conditions, while others are little more than a job number and dollar amount.
Text or message authorization
A text message or informal chat approval raises the same questions as an email approval, generally with even less detail about scope and terms. Firms relying on this kind of authorization should be especially cautious about assuming it satisfies a written contract requirement.
Verbal authorization
A purely verbal go-ahead, with no written record at all, is the situation least likely to satisfy a written contract requirement on a policy that has one. Firms operating this way should treat it as a real coverage question worth resolving before taking on work, not just a documentation preference.
Why firms should not assume these satisfy a specific policy
Policy wording varies significantly. Some forms use "written contract," others use "written agreement," and some don't require anything written at all. A firm should not assume that because a form of authorization worked for a colleague's policy, or seemed reasonable in practice, it will satisfy their own carrier's specific wording.
Why you should ask the carrier when wording is unclear
When a firm reviews its policy and finds a written contract requirement, or unclear language about what counts as an agreement, the reliable next step is asking the broker or carrier directly. Getting this answered before a claim happens, rather than during one, gives the firm a chance to adjust how it documents engagements if needed.
Example
A homeowner emails a structural engineer: "Looks good, please proceed with the inspection and report." No formal contract is signed, and the engineer proceeds based on that email. A claim arises six months later related to the inspection.
At that point, the engineer should not be learning for the first time whether this email exchange satisfies the policy's written contract requirement. Confirming this in advance, whether through the broker or by adjusting how engagements are documented, avoids finding out the answer during a claim.
What to check in your own policy
- Check whether the professional services definition includes a written contract or agreement requirement
- Look at how the policy defines “written contract,” since some forms include specific language
- Review how your firm typically authorizes smaller or rush projects
- Ask your broker whether email, purchase order, or proposal acceptance would satisfy the requirement
- Consider a standard engagement letter or short-form agreement for projects that currently start informally
Related Questions
Does my E&O policy require a written contract for every project?
Some do and some don't. This depends entirely on how your specific policy defines covered professional services. Check the definition or ask your broker.
Is an accepted proposal the same as a written contract?
It may be treated similarly if the proposal contains the necessary terms and is properly accepted, but this depends on the policy wording and the facts of the engagement.
Can a text message create a written contract?
This is a legal question that depends on the facts and the applicable law in your jurisdiction. It's not something a general resource page can resolve for a specific situation.
What should I do if I work without written contracts on smaller projects?
Review your policy's requirements, discuss the practice with your broker, and consider adopting a short-form written agreement even for rush or smaller engagements.
Why does this matter if I've never had a written contract requirement come up in a claim?
It may not have come up yet, but a policy's requirements apply regardless of past experience. Confirming coverage in advance is more reliable than assuming past luck will continue.
What Counts as "Professional Services" Under an Engineer's E&O Policy?
An E&O policy doesn't automatically cover every service an engineer performs. Here's why the professional services definition
Can an Engineer’s Emails Create Professional Liability Problems?
Worried a routine email could come back to haunt you in a professional liability claim? Here's how project documentation actually
Why Your Professional Liability Application Matters at Renewal
Think your professional liability application is just a formality? Here's why what you report each year can shape your premium, and why
Author:
Hardcover Editorial Team
Reviewed by:
Hardcover Insurance Team
Last reviewed:
September 25, 2026
This article is educational and does not provide legal advice or determine whether a specific claim is covered. Policy terms, exclusions, underwriting requirements, and applicable law vary. Consult your insurance professional and qualified legal counsel regarding your circumstances.