Contractor Professional Liability & E&O Policy Comparison

 

Construction planninng site


         

Professional Liability


     

Errors & Omissions


Purpose

For general and design-build contractors or construction managers who have design professionals on staff or who subcontract design services to others to cover their professional liability for design services.  

For artisan/specialty contractors seeking coverage for errors or omissions in their work that cause damage to, loss of use or recall of their work, installed products or impaired property.

  Retention      

SIR applies to each professional or pollution claim.


     

SIR applies to all claims including pollution claims. When applicable, SIR and coinsurance apply to each E&O claim. Coinsurance only applies to damages, not defense costs.

  Wrongful Act
     

Definition addresses covered professional services.
  

     

Definition addresses design or workmanship of your work or use of defective products or materials in your work.

  Design Coverage
     

Coverage provided for design whether you or your subcontractor perform the work.
  

     

Coverage limited to design services constructed by an insured or their subcontractor. Design-only endorsement is available.

  Faulty Workmanship
     

Specifically excluded. 

      Insured’s faulty workmanship is specifically covered via definition of wrongful act.

  Errors in Means and Methods
     

Specifically precluded via exception to definition of construction management services.

      Specifically covered via definition of wrongful act.

  Design Rectification Coverage
     

Includes coverage to fix detected design errors without a formal claim.

      No rectification coverage provided.

  Consent to Settle
     

Requires the insured's consent to settle a claim.

      The carrier has the right to settle the claim.

  Circumstance Reporting      

Locks in coverage for a claim that may develop out of a reported circumstance.

      Locks in coverage for a claim that may develop out of a reported circumstance as long as insured continues coverage with us.

  Worldwide Coverage
      Applies to claims that occur anywhere in the world.

      Applies to claims that occur anywhere in the world but claims must be made in U.S., Canada, territories/possessions.

  Bodily Injury
      Included for wrongful acts and pollution incident.



      Limited; excluded prior to completion, with exception for pollution incident. See definition of wrongful act, part 2; intent is to cover design-related BI that may be excluded from GL; BI from non-professional work should be covered by GL. See bodily injury exclusion.

  Personal and Advertising Injury
     

No specific exclusion; covered to the degree it arises out of a wrongful act.

      Excluded.

  Intellectual Property
     

No specific exclusion.

      Excluded under personal and advertising injury exclusion (part G).

  Substitutions      

No excluded.

      Excluded except where there is a written authorization for the substitution.

  Sale or Distribution of Goods
     

No coverage except for software created or modified as part of your design, work or installation.  

      No coverage except for software created or modified as part of your design, work or installation.

  Temporary Works
     

Excluded.

      No exclusion.

  Timely Completion of a Project/Costs/Bid Inaccuracies       Coverage excluded for:
1. Failure to complete project or render services on time.
2. Any cost estimate being exceeded.
3. Any bid inaccuracies except for wrongful acts in the preparation of drawings and specifications or for the performance of construction management services.

      Coverage excluded for:
1. Delay, including any failure to perform any service or complete any project on time.
2. Any cost estimate being exceeded.
3. Any bid inaccuracies
4. Advising or failing to advise any legal work or title check.

  Extended Reporting Periods
      60 days automatic; one, three and five year options available for additional premium. 

      60 days automatic; additional optional periods of one, three and five years (listed on Dec) are available for purchase.


Scroll to top