Client Login

Keep up to date

Subscribe to the INSURICA blog and receive the latest news direct to your inbox.

Subscribe to the blog

DO GENERAL CONTRACTORS NEED PROFESSIONAL LIABILITY COVERAGE?

Commercial General Liability policies were not designed, nor do they include coverage, for Professional Liability. There is a perception that contractors do not need professional liability coverage, but this isn’t a safe assumption. Professional Services are generally those that require specialized knowledge, labor or skill, and this knowledge is predominantly intellectual, rather than physical. In other words, professional services are those in which providers are paid for what they know – for their professional opinions. We are accustomed to seeing Professional Liability exclusions for architects, engineers, surveyors, and other professionals. It’s easy to understand why many assume this exclusion does not apply to a contractor.

The troubling part of this perception has to do with some of the terms used in the Professional Liability Exclusion. Professional Services that are excluded may be “… preparing, approving or failing to prepare or approve…reports, field orders, change orders, supervisory…. [or] inspections …” Most General Contractors are probably engaged in some – or all – of these activities.

It’s important to be aware of this possible gap in a General Liability policy. You may want to consider obtaining a proposal for coverage for Contractor’s Professional Liability.

About the Author

INSURICA
INSURICA

Share This Story

Keep up to date

Subscribe to the INSURICA blog and receive the latest news direct to your inbox.

Subscribe to the blog

Related Blogs

2021 Construction Industry Trends

June 10th, 2021|Blog, Construction|

The COVID-19 pandemic has impacted many businesses across a variety of industries, forcing them to rethink their daily operations to ensure the safety of their employees and the general public. This is no different for construction firms, where COVID-19 has led to project delays, significant job loss, and unprecedented uncertainty.

The Costs of Undelivered Cargo and Employing the Best Drivers

June 7th, 2021|Blog|

If you’re experiencing driver shortages, you may feel compelled to quickly fill an empty position to avoid undelivered cargo that’s costing you money; however you may end up spending more money in the long run if you hire unfit drivers who are a risk to themselves, your company and the public.

Go to Top