What is covered by project manager liability insurance?
Project manager professional liability insurance is designed to protect project managers in the event they cause (or allegedly cause) financial loss to a client or do not perform your services as promised and are sued. Some of the most common claims that are covered are professional negligence, misrepresentation, libel and slander, inaccurate advice, and loss of documents.
Your judgement, settlement and defense costs can be covered by your project manager professional liability insurance policy, regardless if the allegations are true or not.
At EasyCover, we offer three levels of coverage:
- $1 million
- $2 million
- $3 million
This is the maximum your policy will pay out over the 12-month policy period, regardless of the number of claims. The level of coverage you choose depends on your individual business, industry, clients, value of your projects, and anticipated costs of a lawsuit against you.
For each claim, you’ll also be responsible for paying a deductible. This will range from $250 to $1500 and is applicable for each claim. For example, let’s say you have a deductible of $500 and you have two covered claims. You’ll pay $1000 total – your project manager professional liability insurance will cover the rest (up to your policy limit).
Keep in mind that project manager professional liability insurance doesn’t cover any deliberate acts of dishonesty, fraud or misrepresentation. You’re also required to inform your insurer as soon as you’re aware of any potential lawsuits.