As a construction manager you make a lot of big decisions for your team. Be sure to cover your bases by purchasing Professional Liability Insurance!

Professional Liability Insurance also known as Errors and Omissions Insurance provides coverage for individuals and companies offering professional services such as construction management, design-build contractor services, architects, and engineers.

Professional Liability Insurance provides insurance coverage for only one general cause of loss, or claim against the insured; the rendering of, or failure to render, errors and omission of the specified type(s) of professional services.

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What Does Professional Liability Insurance Cover?

• Professional Liability Insurance provides insurance coverage for only one general cause of loss, or claim against the inured; the rendering of, or failure to render, errors and omission of the specified type(s) of professional services.
• Defense on claims, regardless if you are at fault, or indemnity is required.

Who is covered under Professional Liability?

• You, the business owner.
• Your salaried and hourly employees.

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What does Professional Liability Cover?

• Insurance often covers both court costs and any settlements up to the amount specified by the limits of the insurance contract.
• Reasonable and necessary legal defense cost fees and court costs, these fees are usually inside the limits or liability.
• Indemnity of damages, as a result of errors or omissions to render services by you or your employees.

What Activities Would Create a Need for Professional Liability?

• Does the company enter into design-build or construction management projects?
• Does the company perform construction services for a fee?
• Does the company assist project owners in the selection of professional services, such as architectural or engineering services, and or assist in the directing of these service for the owner?
• If you or your employees fail to exercise the appropriate degree of skill and care, could this cause damage to others?
• Does the firm have any licensed professionals such as architects or engineers, on staff? Do you subcontract these professionals, for services, to others for a fee?

What determines the price of Professional Liability or Errors and Omissions Insurance?

• Type of work being performed; Design-Build Contractor, Construction Manager, Architect, or Engineer, or another type of professional consultant.
• Project size and value.
• The cities and states where your work is being performed.
• Annual Receipts of your company.
• Years’ experience, years in business, years licensed.
• Experience in as a consultant, design builders, construction manger or other professional consultant.
• Limits of liability.
• Number of employees.
• Well defined and controlled service processes, prime contracts, subcontractor agreements and checklists would indicate good control of exposures to loss.