3 Reasons Contractors Need Professional Liability Insurance

A primary contractor’s responsibility is the completion of a project in an efficient and timely manner and to the satisfaction of the client. Contractors can benefit from the protection provided in a quality contractor’s professional liability policy. Every project comes with risks associated with errors in design, cost estimates, and execution.

1. Project Design Issues

Every project runs the potential for design errors. Some of these miscalculations can be due to on-the-job discoveries that require a change in design, while others come from unanticipated subcontractor amendments.

2. Inaccurate Estimates

Accurate estimates for the cost of a project depend on a number of factors, including the ability to keep a project on schedule. Even a highly seasoned contractor runs the risk of delays, unexpected material substitutions, or other additional building costs that are not paid by the client.

3. Work Execution Errors

Contractors assume the responsibility for the quality of work performed by those completing the project. Often times, human error results in loss of time and materials, but there are occasions when it also can lead to third-party injury.

As the experts at hilbgroupfl.com note, contractors incur the financial burden that these errors frequently entail, including those associated with litigation.  Professional liability insurance can provide protection and peace of mind so the contractor can focus on the tasks at hand.