Why Purchase Contractor Professional Liability Coverage?

Contractors offering in-house design services, retaining third-party design builders like engineers, architects or technical subcontractors, or acting as construction managers should evaluate the cost benefit of obtaining contractor professional liability insurance and protective indemnity insurance.  The former provides coverage for in-house design service errors and omissions, design and building service mistakes made by third party design professionals retained by the contractor and errors in construction management.  While protective indemnity insurance provides coverage when design subcontractors have insufficient professional liability insurance.  Professional liability policies differ and each policy should be evaluated to determine if coverage is sufficient for a contractor's needs and potential exposure.