How to Choose the Right Level of Professional Liability Insurance for an Edmonton Construction Contractor
To choose the right level of protection for your business, consider the answers to the following questions:
- What contract requirements do you have with regards to liability insurance?
- What are your company’s and industry’s liability risks?
- What type of clients do you work for?
- What industry are your clients in?
- What is the overall value of your projects?
- What size is a potential legal claim against you?
The level of protection you require will depend on these factors as well as your own risk tolerance.
Construction Contractors in Edmonton Covered by EasyCover
We offer professional liability insurance for many different construction contractors in Edmonton, including:
- Architectural Technologist
- Contracts Manager
- Construction Safety Officer
- Document Control
- Electrical Engineer
- Fire Safety Auditor
- Health and Safety Consultant
- Highway Engineer
- Maintenance Manager
- Operations Manager
- Planning Engineer
- Construction Project Manager
- Site Engineer
- Technical Engineer
- Urban Planner
How to Manage Your Risk as a Construction Professional Liability Insurance in Edmonton
While professional liability insurance protects Edmonton construction contractors, it’s always best to avoid getting sued in the first place! This keeps your premiums lower and you avoid the stress of litigation. Here are some tips to mitigate your risks:
- Develop effective communication with your clients. Claims often arise because a client wasn’t communicated with properly and were surprised by a financial loss or there was a lack of communication with a subcontractor. Open and honest communication helps keep everyone on the same page.
- Keep records. You should keep records of all communications (including in-person conversation through a follow up email) as well as legal documents, receipts, and anything else relevant to your business. Keep multiple copies and at least one digital backup. These records help you protect yourself and provide evidence if you’re sued.
- Ensure contracts address delays and additional costs as well outline your role specifically. While a good contract may not prevent you from being sued, it is an excellent way to set expectations and can be used as a reference.
- Vet subcontractors. This helps minimize mistakes and helps a project to be completed properly while on budget and on time.
- Practice quality control. Implement procedures to help assure ongoing quality. It can help to have someone else review the risk to catch anything you’ve missed.
What affects Edmonton construction contractor professional liability insurance rates?
The following factors affect the cost of professional liability insurance for construction contractors in Edmonton:
- Your industry
- Your company’s revenue
- The number of employees you have
- Where you operate
- Your insurance options including coverage and policy limits
Frequently Asked Questions About Edmonton Construction Contractor Professional Liability Insurance
Here are some answers to our most frequently asked questions about Edmonton construction contractor professional liability insurance.
Aren’t I covered by commercial general liability insurance?
A CGL policy covers a different type of liability risk: claims against you or your business for bodily injury, death or property damage as a result of your business operations or by actions or inaction by yourself or an employee. It does not cover any claims for causing financial loss to a client.
What’s the difference between commercial general and professional liability insurance for Edmonton construction contractors?
For construction contractors in Edmonton, the biggest difference between commercial general liability(CGL) and professional liability insurance is the type of claim they cover: CGL covers bodily injury, death and property damage caused by your business operation or an employee’s action/inaction whereas professional liability covers claims of your professional service or advice causing financial loss to a client or third party.
What’s the difference between professional liability insurance and errors and omissions insurance for Edmonton construction contractors:
Professional liability insurance and errors and omissions insurance is the same coverage with a different name. You’ll see both terms used.
As an Edmonton construction contractor, am I legally liable for my subcontractors?
Yes, you are usually legally liable for your subcontractors. This is because subcontracting is your decision – you’re responsible to ensure they’re meeting deadlines, budgets, and quality expectations. Their success or failure reflect on you.
If a subcontractor misses a deadline or makes a mistake that costs your client, you can be held liable. Professional liability insurance can help protect you if this happens.