Managing a construction project, no matter the size and scale, always comes with a great amount of risk. However, many in the construction industry overlook an important insurance policy as they build their coverage. While most construction firms are forward-thinking enough to protect against general liability claims, workers compensation and builders risk, many overlook the benefits of professional liability insurance coverage.
The Importance of Professional Liability Insurance
While professional liability insurance is often treated as an afterthought on larger construction projects, not taking into account the potential for loss resulting from poor design work is a very risky move. No matter your track record, there is always a possibility that you could be left to deal with substantial delays or accidents that lead to bodily injury and property damage due to defective design.
With the additional layer of protection that professional liability insurance provides, you can enjoy peace of mind knowing that your business won’t be in jeopardy in the event that a client holds you responsible for any services that didn’t have the intended results. This coverage option not only protects against professional negligence but it will also work to help you avoid paying out of pocket for defense costs or any judgments made against your company.
Identifying Risk
Identifying and managing risks on a construction project can be very difficult because many design and engineering responsibilities are shared by a number of different project participants. Typically, when a primary architect is brought on board to design a project, additional parties who are not directly under the architect will also be involved with the design. This can lead to issues that affect the progress and/or efficiency of the design. In instances where there is a disconnect between the primary architect and the team on the ground, your company is more likely to be exposed to the risk of an expensive and time-consuming lawsuit.
Additionally, contractor responsibilities are greater than ever before. Contractors are often required to tackle professional risk management, design delegation, construction management and much more. With so many different moving parts working to complete a single project, it only makes sense that identifying the many risks involved can prove to be difficult.
About ISU-The Olson Duncan Agency
At ISU-The Olson Duncan Agency, our goal is to provide clients with a total solution, not just a quote or a contract. We provide businesses and individuals with insurance and risk management solutions, and we aim to provide real value and build trustworthy, long-term relationships with our clients. To learn more about our services, give us a call today at (310) 373-6441 to speak with one of our professionals.