Contractors Professional Liability Insurance Discussed in Construction Risk Management
This release of Construction Risk Management
contains an updated discussion of contractors
professional liability insurance, which is based on a review of several
insurers' nonstandard forms.
In today's world where the lines of demarcation between design and
construction have blurred, the need for contractors professional liability
insurance has grown. Contractors professional policies are tailored to meet the
specific needs of contractors given their various exposures for design error.
In addition to covering the contractor's liability for design errors, most
contractors
professional liability policies also offer protective professional coverage
and/or rectification coverage, both of which cover costs the contractor incurs
as a result of design errors. This update provides insight into current
approaches insurers take in providing this important coverage, starting with an
analysis of the various insuring agreements.