Product Update

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.