The process of designing and constructing a building is one that involves an incredible amount of planning, coordination and collaboration. Unfortunately, that often means there is a wealth of opportunities for miscommunications or miscalculations to arise.
As construction contractors continue to see their responsibilities increasing, so too are they seeing an increased need for professional liability or errors and omissions insurance. Whether working independently or in conjunction with design engineers, specialists and sub-contractors, Ontario construction contractors need E&O insurance now more than ever.
Common Risks for Construction Contractors
Especially when working with sub-contractors, construction professionals often find themselves being blamed for errors they had no power to control. Whether it is a mistake on your part, that of a sub-contractor, or even a false claim , a liability lawsuit can bring your project — and your business to a screeching halt.
Take a look at some hypothetical scenarios based on some of the most common types of construction contractor professional liability claims:
You are working on a project. The budget you requested turns out to be too little due an abrupt change from a third party or an unforeseen/unpredicted occurrence.
Staff communication error
You have employees installing a component for your client and after speaking to your client about the installation, a miscommunication occurs within the conversation. The component ends up being installed incorrectly and now the client wishes to hold you accountable.
Subcontractor Late Delivery
Your client wishes to hold you accountable for the late completion of a project. You were late because a subcontractor failed to deliver a critical product or service on time. You are still on the hook for this delay in the client’s eyes.
Of course, these are only a few of the countless reasons clients may point fingers toward construction contractors, so why leave yourself at risk?
Who Does Cover Advantage Protect?
With so many moving parts going into the construction of a building, roles and responsibilities of the professionals involved are becoming more and more blurred. Builders are taking on more design responsibilities, designers are handling parts of planning and production — and the list goes on.
Bottom line: if you are directly involved with clients at any stage of the construction process, you likely need to protect yourself and your business with reliable, proven professional liability coverage.
Get a Quote. Get Covered.
Many construction contractors make the mistake of thinking that they are sufficiently covered by standard CGL policies, only to find out they are under-protected after a claim has been filed. A few minutes of your time now to get a free quote could save you thousands in legal costs and damages in the future — don’t put yourself at risk!