For many contractors, particularly those that are specialized, the line between contracting services and professional services has become blurred. While they are performing their normal operations, they could face professional exposures by either making slight adjustments to plans to get the job done, supervising other contractors, or providing recommendations that could be considered professional services in the event of a claim. When these contractors purchase General Liability and CPL policies, they should be aware that professional services are typically excluded. If a claim is tendered under a GL or a CPL policy and it is determined that some of the services the contractor was performing are actually professional services, this can become a problem and in the worst case scenario preclude coverage

What is Contractors Professional Coverage?

Contractors Professional is a combined CPL and Professional Liability policy that is custom tailored to address the risk exposures encountered by non-environmental contractors. PartnerOne’s contractors professional liability insurance provides:

• Limits up to $15,000,000
• Minimum Premium $5,000
• Project policies available

Contractors Professional Liability

• Mitigation of Damages (additional limit)
• Coverage for LEED Accredited Professionals
• Coverage for the use of Building Information Modeling (BIM) design assist programs
• Coverage for Technology Services provided in the course of performing professional services
• Automatic coverage for newly formed entities or acquisitions for 90 days

Contractors Pollution Liability

• Occurrence or claims-made based coverage available
• Emergency Remediation Expenses (without a sub-limit)
• First Party and Contingent Transportation Pollution Liability including loading and unloading
• Blanket Non-Owned Disposal Site Coverage
• Broad Microbial Substance Coverage including mold, mildew, spores, fungi, bacteria and Legionella Pnuemophila
• Site Pollution Liability coverage at named insured owned or leased locations
• Environmental civil and regulatory fines and penalties.
• Natural resource damages (NRD) coverage.
• Restoration Costs included
• Covered operations as defined by you in the application
• Corporate Reputation Rehabilitation (additional limit)
• Crisis Management Expense (additional limit)
• Definition of Bodily Injury includes medical monitoring resulting from injury as well as mental anguish and emotional distress.

Contractors Professional Claim Scenarios

Below are contractors professional claim scenarios for non-environmental contractors:

• A general contractor (GC) was retained to construct a retail center using the design-build delivery system. The GC entered into an agreement with a design professional to provide the design for the project. The GC secured indemnification and hold harmless agreements from the design professional. During construction, it was discovered that the design professional had erred laying out the site plan, resulting in the retail center sitting several inches above the existing roadways. Correction of the problem was estimated to cost more than $1 million. The GC made a demand under the indemnification and hold harmless provisions of the design professional’s contract. Unfortunately, the design professional declared bankruptcy and the GC remained professionally liable to the project owner.

• A GC was contracted by a publisher to design and construct a book warehouse. Upon completion of the building, cracks developed in the second floor slab of the warehouse. It was determined that the slab had been under-designed and required replacement. Cost for replacing the slab, and moving and storing the books exceeded $725,000. The GC was held liable for the loss under professional liability arguments.

• A contractor was retained by a project owner to provide a constructability review of prepared plans and specifications, and to perform a value engineering analysis for construction of a school. The contractor determined from the review that the HVAC system was undersized. The contractor recommended changes to the system which the project owner rejected due to cost. The system was undersized causing extra moisture, leading to mold growth. The school alleged that the contractor was responsible for the mold because it had failed to properly warn the owner of the consequences of an under-designed system. The contractor was held to be partially liable for failing to warn.

Contact us today to learn more about our policies for contractors.

Target risks Include, but are not limited to:

• Carpenters
• Construction Managers
• Drywall Contractors
• Electrical Contractors
• General Contractors
• Painting
• Roofing
• Utility
• Excavation and Grading
• Plumbing
• Street and Road Contractors
• Structural Steel
• Sewer and Water
• Glass and Glazing Contractors
• HVAC Contractors
• Industrial Maintenance
• Insulation
• Masonry
• Mechanical