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Construction Liability Insurance
If you’re in construction, liability insurance is essential to protecting yourself financially. Whether you’re a construction contractor overseeing a small project or a consultant managing a large number of sub-contractors, your clients could accuse you of failing to meet project deadlines and budgets. They could also accuse you of errors that occurred under your supervision. Regardless of if these accusations are true or not, you’ll have legal costs. When coverage is triggered under your construction professional liability insurance, these expenses will be covered.
Unfortunately, standard construction insurance and commercial general liability insurance policies don’t cover service- or advice-based claims. That means you could be held responsible for expensive litigation fees – even if you’re not found liable.
Fortunately, EasyCover offers construction professional liability insurance (also known as construction errors and omissions insurance). This coverage goes beyond standard construction insurance and commercial liability insurance policies, offering protection if you’re sued due to allegedly faulty advice or a service-based error or omission.
Construction Professions Covered
EasyCover offers liability insurance for many different construction professionals, including:
- Architectural Technologist
- Contracts Manager
- Construction Safety Officers
- Document Control
- Electrical Engineers
- Fire Safety Auditors
- Health and Safety Consultants
- Highway Engineers
- Maintenance Managers
- Operations Managers
- Planning Engineers
- Project Managers
- Site Engineers
- Technical Engineers
- Urban Planners
What is covered by EasyCover’s Professional Liability Insurance for Construction Professionals
If you are sued as a result of a mistake, failure to provide, misrepresentation, or causing financial loss to a client while providing a service or advice, your construction liability insurance will cover your legal expenses, so long as you didn’t engage in any deliberate dishonesty, misrepresentation or fraud. This includes costs associated with judgements, settlements and defense. As these can be astronomical, making professional liability insurance critical for protecting your financial security as a construction professional.
There are three levels of construction liability insurance coverage offered by EasyCover:
- $1 million
- $2 million
- $5 million
This is the maximum amount you would receive for any and all of the professional liability claims you make in the 12-month policy period, including the settlement, judgement, and defense costs. Make sure you consider any contract requirements as well as your business and industry risks when choosing your level of coverage. Consider:
- The type of clients you work for
- What industry your clients are in
- The overall value of your projects
- The size of legal claim that could be made against you
Your deductible will vary based on your revenue and is paid for each claim. Say you had a $250 deductible and made two claims in a year. You’d pay a total of $500 in deductibles.
Construction Professional Liability Insurance in Action
There are many scenarios where having construction liability insurance comes in handy. Here are a few of the most common claims;
- A sub-contractor falls to deliver on time.
If a sub-contractor fails to meet the deadline for their work, the client could hold you responsible for the delay.
- The project exceeds the original estimate.
It often happens that a project unexpectedly exceeds the original budget. This could be because of a third-party change or an obstacle encountered in the construction process. A client could hold you liable for the financial loss.
- A staff error.
Mistakes happen. If an employee under your supervisions installs a component of the project incorrectly after a miscommunication with the client, you could be held liable for the error.
In all of these scenarios, construction professional liability insurance would be able to cover your legal costs.
How to Manage Your Risk as a Construction Professional
While professional liability insurance protects construction professionals, it’s always best to avoid getting sued in the first place. Not only will this keep your premiums down, you won’t have to go through the stress of litigation. Here are some tips to mitigate your risks as a construction professional:
Communication can be difficult, but it’s key. Ensure you communicate with your clients and subcontractors regularly and be honest. Often, claims arise because a client had no idea there were any problems and are surprised by a financial loss. Subcontractors need to be properly brought onboard with the project so they are able to communicate their own issues. Ensure there is open and honest communication about the project’s feasibility, design, and funding.
Keeping good records is critical. Contracts, receipts and communications should all be recorded. If you have a conversation in-person with the client or subcontractor, you should send a follow up email confirming what was discussed. This will help you protect yourself and provide evidence in the event you are ever sued.
You should also be keeping digital and multiple copies of everything. Make sure your computer and phones are backed up and everything is adequately protected.
Your contracts can protect you. Make sure they address delays and additional costs. Outline very specifically your role. While this may not prevent you from being sued, it is an excellent way to set expectations and can be used as reference.
Make sure you’re properly vetting all subcontractors. Choosing the best subcontractors will minimize mistakes and help a project be completed properly while on budget and on time. Inquire into how they communicate, record keep and ensure quality themselves.
When it comes to the actual project, you should have procedures in place to help assure ongoing quality. It can help to have someone else review the work to catch anything you’ve missed – or perhaps you’re the second pair of eyes to give final approval.
Mistakes do happen. Delays are often inevitable, especially in construction. But you can minimize the occurrence and mitigate the extent with proper risk management.
EasyCover’s Construction Liability Insurance
With EasyCover, you get the critical coverage you need in a fast and easy way. We sell insurance directly to you. Our online tool lets you get a free quote quickly – and you can even purchase a policy in less than 5 minutes.
Step 1: Enter your information for your free construction professional liability quote.
Step 2: Select the policy that works for you.
Step 3: Pay online and receive your policy documents.
Our coverage is comprehensive and affordable. Work with confidence knowing you’re covered in the event you’re sued by a third party or client. With EasyCover Canada, you can protect yourself, your business, and your finances with construction professional liability insurance.
Protect yourself from the unexpected.
Get Construction Contractors Professional Liability insurance from EasyCover today.
Why Use EasyCover
If you provide advice or professional services to your clients, and are sued due to your alleged negligence, your Commercial General Liability policy may not respond. You need the protection of Professional Liability Insurance.
With EASYCOVER Professional Liability Insurance, you are protected against a broad variety of negligent acts, errors or omissions, backed by one of the oldest and most respected insurance providers in the world.
Get Canada’s first online Professional Liability Insurance at very competitive rates.
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Get a FREE quote, print your policy documents and pay from the comfort of your home or office, all in minutes with our easy-to-use online tool.