Contractors' Errors and Omissions Insurance
Errors and Omissions insurance, also known as professional liability insurance, is typically thought to cover architects, accountants, attorney and such. E&O for general contractor business helps you to defend yourself if your accused of making a mistake that causes someone to lose money. The coverage can help you pay for professional negligence (actual or alleged), legal defense costs and legal judgments. It can also cover business disagreements with clients. For example, if a client accuses a mason, plumber, carpenter or roofer of faulty work the E&O policy will help you defend yourself against those types of accusations. If you did make a mistake in your work, this insurance would help cover the client’s financial damages.
Property owners and developers invest a lot of money into their construction projects. When the final product does not meet expectations they are likely to hold the construction contractor responsible. It’s important to be prepared for the possibility of the financial costs to defend yourself or fix any mistakes. Here are some examples:
Flooring is accidentally damaged when installing new cabinets.
Accusations of professional expertise negligence
Use and instillation of defective materials in finished job
Budling contractors’ E&O insurance coupled with a general liability policy is recommended for more comprehensive protection. Contact RISE Insurance for more information on contractors insurance at info@riseins.com or 423-541-1111.
