7 Compelling Reasons to Purchase Professional Liability Coverage


When times are tough, companies have to examine their expenses carefully. Some contractors may even consider going without professional liability coverage. However, dropping your coverage can cost you more than you think. Here's why:

1. If you drop coverage now, it will be as though it never existed.   

All of the Professional Liability (PL) policies on the market are claims-made policies, meaning that coverage must be active at the time of the claim to be covered. Even if your policy was active while working on a project, if a claim is brought after you've let your coverage lapse, it won't be covered. Keeping your coverage-even after a project is completed-is the best way to protect yourself against future claims. 

2. Insurance protects your assets. 

The average cost of a claim against a contractor firm is around $120,000 when payment is made to the plaintiff. And, remember, even frivolous claims cost you time and money. We can offer limits of up to $10 million to help ensure your assets remain yours.

3. Pay less for continuing education (CE) credits. 

In fact, pay nothing. You may be required to achieve a certain number of CE credits or learning unit hours each year to keep your professional license. As a Victor policyholder, you can update those skills with Victor School of Risk Management, our continuing education program on managing risk. When you incorporate CE courses as part of your larger risk management program, your firm may even qualify for premium credits.

4. Who will be with you when a claim is brought against your firm? 

If you're a Victor policyholder and a lawsuit is brought against you, we will provide you with a defense attorney who will fight for you and your reputation. We also offer pre-claims assistance to help you deal with a problem before it becomes a claim. 

5. You may be contractually required to have professional liability coverage.

Many projects require contractors and construction managers to have PL insurance. Keeping up your professional liability coverage is an excellent way to make sure you're meeting your obligations-both past and present-and ensures your eligible for more projects. 

6. You get easy web access to our risk management library.

When you're insured with Victor, you get access to the secure section of our risk management website. It contains information and articles to help you take control of your risks. 

7. As a professional, you owe it to yourself.

Being a contractor or a construction manager isn't just a job. It's a profession. And since you are a professional, your clients have high expectations of your work. You're responsible for upholding a standard of care in your community and safeguarding public health, welfare and safety. Take the next step in your professional career by purchasing insurance to protect yourself and your clients.

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Underwriting Contact

Kathleen Curry
(301) 951-6927

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