Contractors Professional Liability Insurance Trends
Contractors Professional Liability insurance policies are increasing in number. Due to the increase in the proposed spending plan for our infrastructure the insurance coverage provided under this Professional Liability policy is becoming more attractive to Contractors. This insurance policy provides coverage for damages arising out of wrongful acts, errors or omissions from professional services performed by or on behalf of the contractor, design-builder, or construction manager (at risk or agency). Some policies now provide first-party insurance coverage such as protective or rectification for mitigation of damages. Frequency of professional liability insurance claims continue to climb with some companies reporting an increase of 20% from year to year. Additional insurance coverage being offered by some carriers includes defense in addition to the insurance limit of liability. Broader definition of professional services is another insurance policy trend, more like the definition used for design professionals liability insurance. The premium cost for this liability insurance is not cheap, however, the insurance coverage provided definitely outweighs the cost of the contractor having to hire a lawyer, an expert witness, and paying for all the expenses involved in litigation. See the rest of David Slaugenhoups article in Risk Management Trends .