The roles that construction management firms have taken on over the past years have increased their liability. Oftentimes a company is responsible for hiring the engineer, the architect, and all sub-contractors, which makes the firm liable if someone does not meet the levels of standard care. In order to decrease construction management risk, these firms need to have a minimum amount of liability insurance.
Eligible Business Classes
Although construction firms in general should definitely have the appropriate E & O coverage, there are other aspects of the industry that may want to research and decide if having extra protection is a smart move. The qualified categories include:
- Agency Construction Management
- Cost Estimating Services
- Design Build
- Construction Consultant
- Scheduling Department
Benefits of a Professional Liability Program
In order to protect against construction management risk, there are programs tailored to the industry. Policy limits may cover up to $2M for principal coverage, although you can purchase excess coverage to cover a higher limit.
Coverage will vary depending on each specific project. Because each project may produce its own unique issues and risks, there can be tailored descriptions of protection for each one. Many insurers will offer coverage for projects located throughout the United States and Canada, and in the event there is a claim, it is easy to fill out an application form.