Contractor professional liability / E&O insurance

Contractor and construction mistakes, such as failure to follow a blueprint, can be financially devastating for your client. As a result, your business could be sued to recoup losses. Contractors' professional liability insurance, sometimes called errors and omissions insurance (E&O), will help provide indemnity for legal costs when facing accusations of negligence or errors.

This policy offers liability coverage related to professional services, including:

• Failure to deliver promised services
• Negligence in providing services
• Errors and oversights

Your insurance company can usually add this coverage to a general liability policy, typically for a discounted rate.

Most professional liability insurance policies are written on a claims-made basis. So, in order to collect insurance benefits, your professional liability policy must be active when an alleged mistake occurs and when the claim is filed.

While professional liability coverage shields against accusations of work errors, it does not offer complete protection. No matter your specialty, personal injuries and property damage are part of the trade. Other policies to consider include:

General liability insurance: This policy can cover expenses related to customer injuries and property damage, along with advertising injuries.

Business owner's policy (BOP): A BOP bundles general liability coverage and commercial property insurance at a discount. It protects against the most common lawsuits and property damage.

Workers’ compensation insurance: Workers’ comp covers medical costs for work-related bodily injuries and illnesses. Most states require this coverage for businesses with employees.

Commercial auto insurance: This policy covers the cost of an accident involving your business vehicle. Almost every state requires this coverage for business-owned vehicles.

Contractor’s tools and equipment insurance: This policy helps pay for repair or replacement of a contractor’s tools and equipment if they are lost, stolen, or damaged off-site or on route to a construction project.

Surety bonds: These bonds reimburse your clients for financial losses if your company is unable to fulfill the terms of its contract.

Builder’s risk insurance: This policy can pay for damage done to a structure still under construction. It can cover costs resulting from fire, vandalism, on-site theft, and more.

Contractors pollution liability (CPL) insurance: CPL is a type of environmental insurance that covers pollution liability risks for contractors and their subcontractors.

Additional insured endorsement: This extends coverage to anyone other than the policyholder, and can be required by clients, contractors, and subcontractors depending on the project or contract.

Are you ready to safeguard your construction business with professional liability insurance coverage? Complete Insureon’s easy online application today. Once you find the right, affordable policy, you can begin coverage and get your certificate of insurance in less than 24 hours.