Professional Liability Insurance - Protect Your Professional Reputation
When you provide professional services, design work, or consulting as part of your contracting business, standard liability insurance isn't enough. Professional Liability (Errors & Omissions) insurance protects you from claims alleging professional mistakes, design errors, and faulty workmanship.
Call Now: (800) 918-3584 or 844-WORK-247
Why Professional Liability is Essential
Professional Liability insurance bridges a critical gap that General Liability doesn't cover. While General Liability protects against bodily injury and property damage, it specifically excludes coverage for:
- Professional mistakes and errors
- Design defects and omissions
- Faulty workmanship claims
- Failure to meet professional standards
Who Needs Professional Liability Coverage?
Design-Build Contractors
If you provide both design and construction services, you need protection from design-related claims that could arise years after project completion.
Construction Managers
As a CM, you're providing professional advice and oversight. Claims can arise from scheduling delays, cost overruns, or construction defects.
Specialty Contractors with Design Elements
- Structural engineers
- MEP contractors doing design work
- Roofing contractors specifying systems
- Technology installers designing systems
Consultants and Advisors
Any contractor providing professional advice, feasibility studies, or consulting services needs this protection.
What's Covered
1. Design Errors and Omissions
Protection when your plans, specifications, or designs contain errors that lead to property damage or financial loss.
Example: A structural engineer's miscalculation results in a building requiring expensive reinforcement.
2. Professional Mistakes
Coverage for errors in professional judgment, advice, or services that result in client losses.
Example: A construction manager's scheduling error causes significant project delays and cost overruns.
3. Faulty Workmanship Claims
Protection from claims alleging your work failed to meet professional standards or specifications.
Example: A roofing system you designed and installed fails prematurely due to design inadequacies.
4. Negligent Acts, Errors, or Omissions
Broad coverage for any negligent act in providing professional services.
5. Defense Costs
Coverage for legal defense costs, which can be substantial even for groundless claims.
Coverage Options
Policy Limits Available:
- $1,000,000 per claim / $1,000,000 aggregate
- $2,000,000 per claim / $2,000,000 aggregate
- $3,000,000 per claim / $3,000,000 aggregate
- $5,000,000 per claim / $5,000,000 aggregate
Deductible Options:
- $2,500
- $5,000
- $10,000
- $25,000
Policy Features:
- Defense outside the limits available
- Retroactive date coverage options
- Prior acts coverage for existing businesses
- Worldwide coverage territory
Important Policy Considerations
Claims-Made vs. Occurrence
Professional Liability is typically written on a claims-made basis, meaning:
- Claims must be reported during the policy period
- Retroactive date determines how far back coverage applies
- "Tail coverage" may be needed when changing carriers
Retroactive Date
The retroactive date is crucial - it determines how far back your coverage applies. We'll help you secure the earliest possible retroactive date.
Prior Acts Coverage
If you're switching from another carrier or buying coverage for the first time, we can often secure coverage for work done before the policy inception.
Common Professional Liability Claims
Design-Build Contractors:
- Design defects requiring costly repairs
- Inadequate specifications leading to material failures
- ADA compliance failures in design
- Building code violations in plans
Construction Managers:
- Project delays due to poor scheduling
- Cost overruns from inadequate budgeting
- Failure to catch design errors during review
- Poor subcontractor coordination
Specialty Contractors:
- MEP system design failures
- Technology system inadequacies
- Structural miscalculations
- Material specification errors
Why Choose Contractor's Choice Agency?
- Contractor Expertise: We understand the unique professional risks contractors face
- 20+ Years Experience: Specialized knowledge in contractor professional liability
- Competitive Markets: Access to top-rated carriers specializing in contractor E&O
- Claims Support: Experienced guidance when claims arise
- Risk Management: Proactive advice to help prevent claims
Get Your Professional Liability Quote Today
Don't let a professional mistake put your business at risk. Whether you're a design-build contractor, construction manager, or specialty contractor providing professional services, we'll help you find the right coverage.
Call Now: (800) 918-3584 or 844-WORK-247 (844-967-5247)
Email: info@contractorschoiceagency.com
Ask about bundling Professional Liability with your General Liability for potential discounts.
