As a construction manager, you’re the traffic cop on the project, giving directions – and taking risks. Construction Managers Errors & Omissions Insurance (also known as Construction Managers Professional Liability Insurance or Construction Management Firm E&O) can protect you against client allegations of professional negligence or failure to perform as promised in your contract.
Here’s why you should have this coverage:
- Standard Liability insurance won’t fill the bill. Your Commercial General Liability (GGL) policy does not cover errors, contract performance disputes, or other Professional Liability risks. A contractor without going without E&O is like a physician practicing medicine without Malpractice Insurance.
- You need to protect your pocketbook. Losing a lawsuit could be a serious financial blow – and even if a claim is baseless, it will cost your company dearly to defend it.
- Stuff happens. No matter how high your level of experience and expertise, no one is perfect. Even a minor error (from equipment failure to human oversight) can lead to a serious, and costly accident or injury.
- You can’t be everywhere at once. The larger and more successful your business, the harder it becomes for you to personally handle every aspect of each project. An E&O policy will cover not only your mistakes, but those of your employees and independent contractors.
- Your clients might require it. Some clients won’t give you their business unless you and your subcontractors carry this coverage. Even without this requirement, having E&O insurance can help strengthen relationships with your clients by reassuring them that your company can meet its financial obligations under the contract.
Our Construction insurance specialists would be happy to tailor a Contractors E&O policy to the needs of your business. Just give us a call.
