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Contractors Have Professional Liability Risks

According to the International Risk Management Institute contractors, project owners, and project professionals have increased risk of professional liability claims. Yet, less than half of all contractors in need of the coverage are buying it. Insurance can play an important role in “on time and on budget” projects. If your Contractors Insurance coverage is not written properly, your business may not survive financially.

Contractors Professional Liability coverage has become just as important to a contractor as it is to an architect or engineer. New methods of service delivery have created risks and exposures that need to be understood by agents and contractors.

Contractors have a professional liability exposure when they perform or subcontract design, modify plans, change a manufacturer’s specifications, or provide professional construction management services to a project owner.

Critical Issues Involving Contractors Professional Liability Insurance

  • We offer quality admitted and non-admitted markets
  • Professional exposures excluded under most GL policies
  • Even well written contracts can be challenged causing legal expenses for contractor
  • Design build projects increase contractors risk
  • Some everyday work like; dewatering and shoring may involve design services excluded under the GL policy

Many contractors don’t even consider professional liability insurance, even while it is available at reasonable rates. Many project managers and/or owners believe it is covered under the contractors GL policy. This leads to complications at the time of a loss.


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