Skip to main contentSkip to main content
blog icon
News & Updates
Stay current with ongoing updates within our agent network and the insurance industry.
Visit Our Blog
personal profile icon
Members Only
Our online resource center provides added resources and other benefits to our members.
Agent Login
clipboard icon
Become a Member
Fill out a quick application and, upon review, we'll contact you with further information.
business buildings icon
Locate an Agent
Our independent insurance agents are among the top in the industry. Find one of them today!
Agent Search

Contractors Have Professional Liability Risks

Contractors Have Professional Liability Risks

According to the International Risk Management Institute, contractors, project owners, and project professionals have an 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.

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 contractor's GL policy. This leads to complications at the time of a loss.

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 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.

You can depend on our team of construction professionals to design, build, negotiate, and implement an insurance program that fits your individual needs. As your insurance partner, we will create and deliver insurance solutions today in order to keep you in business tomorrow.

Our goal is to create the right combination of coverage, price, and service that exceed your expectations.

  • Critical Issues Involving Contractors' Professional Liability Insurance
  • We offer quality admitted and non-admitted markets.
  • Professional exposures are excluded under most GL policies.
  • Even well-written contracts can be challenged, causing legal expenses for contractors.
  • Design-build projects increase contractors' risk.

Some everyday work like; dewatering and shoring may involve design services excluded under the GL policy.

For a construction project, errors in professional services can result in a range of problems, including disputes, rework, timetable delays, and loss of usage. Any of these problems can cause significant harm with negative effects on the project’s reputation and finances.

Construction professional liability insurance with set minimum levels sufficient to meet any design-driven exposures on the project is frequently a requirement included in the contract between owners and contractors. If the levels of insurance held by the contractors and design experts are insufficient to cover the loss in the case of a claim by or against the owner, the owner may be required to pay those damages.

The specific professional exposures that a contractor faces may be covered by the contractor’s professional insurance. This includes all parties involved in building commissioning, building information modeling (BIM), value engineering, constructability review, and design assist, as well as general contractors, specialized trade contractors, design/builders, construction managers, project managers, program managers, and owner’s representatives.

Commercial business insurance is an important aspect of any business that cannot be ignored especially if the business premises are leased or rented and even otherwise. Whatever your commercial insurance needs, we can design a protection program that’s right for you.





Take Your Agency to New Heights and Grow Your Book of Business


Partners in Action