Contractors Professional Liability Insurance
- May 15, 2014
- Category: Article
According to the International Risk Management Institute, Georgia contractors, project owners, and project professionals have increased risk of professional liability claims. Yet, less than half of all Georgia contractors in need of the coverage are buying it. Insurance can play an important role in “on time and on budget” projects. If your Georgia Contractors Insurance coverage is not written properly, your business may not survive financially.
Contractors have a professional liability exposure when they perform or subcontract design, modify plans, change a manufacturer’s specifications, or provide professional construction management services to a project owner. CPLI is designed to provide the contractor with coverage for defense costs, third-party losses resulting from professional negligence, and pollution if coverage has been added. Defense cost coverage alone is important, even if allegations against the contractor are false, which can present the contractor with a financial burden that might significantly impact the bottom line.
Take time to review your exposures. If you are involved in any of the following, you are at risk for an uninsured loss: providing constructability reviews, selection of architects and engineers and other subcontractors, supervision of work, pre-construction services, construction manager activities, subcontracting design work or partnering in a joint effort with architects and/or engineers, employing the services of design professionals, and accepting responsibility for the project’s design via contract.
We work with several major insurance companies so we can deliver the optimal rate based on your classification, credit report, and business profile. Your company’s success depends on your ability to do the job well while balancing income, expenses, and any unfortunate events like a claim or loss that can greatly cost your firm.