As a contractor, you design, build and repair homes and other structures. Purchase contractors professional liability insurance coverage to protect your assets.
What is Contractors Professional Liability?
Contractors professional liability coverage was introduced primarily for contractors who design and build projects. This insurance covers financial obligations associated with fixing an error or omission made by you or the subcontractors you hire.
What Does Contractors Professional Liability Cover?
- Negligence by you or one of your hired subcontractors
- Design errors caused by you or one of designers you hire
- Faulty workmanship by you or one of your hired subcontractors
- Cost overruns or delays caused by bad sequencing or lack of coordination
Additional coverage options
- Pollution coverage for claims involving pollution from job-site activities, including failure to detect pollutants
- Indemnity coverage if you must file a first-party claim against the project's architect or engineer who is liable for the loss
What's the Difference Between General and Professional Liability?
General liability covers bodily injury and property damage that occurs because of ordinary construction means and methods, including contract breaches. Professional liability covers costs associated with damage that result from your failure to render professional services.
For example, if a handicap ramp you construct fails, a general liability policy covers injuries or property damage. If there is no bodily injury or property damage but the ramp must be replaced because of a design or workmanship error, professional liability is the coverage that typically responds.
How to Purchase Contractors Professional Liability
Purchase a contractors professional liability policy through your commercial insurance agent. You will want to purchase an annual policy based on your operational needs or a project-specific policy for large jobs.
For information on policy options, see Contractors Professional Liability Insurance. For trade-specific guidance, see Mechanical Contractors Professional Liability.
In most cases you'll want a true professional liability policy rather than a limited endorsement on a general liability policy. Talk to an agent to review which form and limits meet your needs.
Frequently Asked Questions
Do subcontractor mistakes count under my professional liability?
Yes—professional liability typically covers errors or omissions by subcontractors you hire when they are part of your contracted professional services.
Will general liability pay to fix a design error?
No—general liability usually pays for bodily injury or property damage; design errors without damage are generally covered by professional liability instead.
Can I buy coverage for a single project?
Yes—many contractors buy annual policies and also purchase project-specific professional liability for large or complex jobs.
Does professional liability cover pollution at a job site?
Some professional liability policies offer pollution coverage as an option, but you should confirm limits and exclusions with your carrier.