As a building professional or construction contractor, you’re bound to hear about contractors professional liability insurance. When the question is whether you need it, the answer is usually yes. CPL insurance provides coverage to contractors for construction errors. During a building project, accidents may happen at any stage of the project. Before you fill out your contractor’s professional liability application, it’s crucial to know what you’re investing in.
Why Invest in Professional Liability
Errors may occur in the design or engineering process. If there are a lot of different professionals involved in a particularly large-scale project, then errors can happen at all stages. The policies in this coverage are supposed to cover risks that general liability does not cover. It extends to third-party liability, pollution liability and first party indemnity. The damages that you can recover include damages from repair costs and economic loss. In your policy contract, you will be able to see which activities are covered under the policy.
As you fill out your contractor’s professional liability application, make sure that you have all of the necessary documentation nearby. When you invest in protection, you save yourself and your company for extensive fees and legal settlements. Accidents happen and when they happen on a construction site, they can be incredibly expensive.