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contractors professional liability insurance

A specialized coverage developed in the 1990s to address contractors' liability for design errors or omissions. Prior to the introduction of these policies, the few markets that offered this coverage did so by endorsement to a design professional liability policy, and coverage was typically limited to the contractor's vicarious liability for design errors and omissions (i.e., liability imposed on the contractor for the errors or omissions of another party, such as an engineer hired by the contractor to provide advice on structural matters). As more contractors began to perform design-build work, which dramatically increased their professional liability exposure, contractors professional liability policies were developed to address contractors' unique design liability exposures and coverage needs, including direct design liability. Coverage can be written on an annual basis to cover all of a contractor's operations or on a project-specific basis to cover a contractor's design liability on a specific project.


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