What is Contractors Professional Liability Insurance?
Contractor’s E&O is a specific type of professional liability policy geared towards the exposures of both artisan and general contractors. Whether it is construction delays, misinterpretation of design plans or even incorrect installation, contractors face significant claim exposure.
Most contractors carry General Liability (GL) insurance policies, but there are significant gaps in this coverage when it comes to “their product”, “their work”, and “their property” which our policies are designed to address.
Why Have Contractors Professional Liability Insurance?
Artisan and general contractors face many risks on a daily basis. Customers have unrealistic expectations of these professionals and are quick to escalate small complaints into high cost legal action. In today’s competitive and litigious environment, small contractors face many potential hazards. Customers expectations are higher than ever, and they’re quick to allege negligence in a contractor’s work.
Property developers are beginning to realize the gaps in coverage that GL policies do not address and are requiring that all contractors carry separate errors & omissions (E&O) coverage.
Contractors Professional Liability Claims Example
David, a roofing contractor, incorrectly installs the roof of an apartment complex. The tenants of the property discover leaks coming through the ceiling and report this to the property owner. The property owner then files a suit for the damages against the roofing contractor. David’s GL policy covers the property damage to the apartment complex owner’s ceilings, floors and cabinets but does not cover the cost to replace the faulty roof. Since there is no Contractor’s Professional Policy in place, David is now responsible for the cost of materials and labor in replacing the roof.
Coverage May Include
- General Contractors
- HVAC/Mechanical Contractors
- Plumbing Contractors
- Electrical Contractors
- Flooring Contractors
- Carpentry Contractors
- Roofing Contractors
- Fire Suppression Contractors
- Paving Contractors
- Landscape Contractors
- Kitchen Contractors
- Masonry Contractors
Contractors Professional Liability Applications