Are You a Contractor Who Needs Insurance?
Contractors Professional Insurance
According to the International Risk Management Institute, contractors, project owners, and project professionals are increasingly interested in the niche market of contractors professional liability insurance (CPLI), according to a recent survey of insurers writing the business. Yet, less than half of all contractors in need of the coverage are buying it. Why is that? It might be that contractors don’t fully understand what the coverage is designed to do. We hope this update will help our clients analyze their exposure and determine a course of action.
Contractors have a professional liability exposure when they perform or subcontract design, modify plans, change a manufacturer’s specifications, or provide professional construction management services to a project owner. This exposure is of increased risk in design-build projects. Most, if not all, contractors’ general liability insurance policies include a professional liability exclusion that removes coverage for claims arising from their professional services work.
Contractors Professional Insurance is designed to provide the contractor with coverage for defense costs, third-party losses resulting from professional negligence, and pollution, if coverage has been added. Defense cost coverage alone is important, even if allegations against the contractor are false, which can present the contractor with a financial burden that might significantly impact the bottom line. Sometimes the biggest exposure is a simple conversation or discussion between the contractor and owner that causes a professional liability situation.
Innovative Insurance Services LLC understands the value of good employees. We know that your day-to-day operations depend on their hard work, expertise, and dedication, and if you supply them with quality benefits and plans, they can work with the peace of mind assurance that they are properly protected. Innovative Insurance Services LLC provides insurance to businesses in Shakopee, Savage, Prior Lake, Bloomington, Eden Prairie, Burnsville, and surrounding areas.