Errors and Omissions Insurance for Construction Managers
Construction managers can wear many different hats on any given project.
As a CM providing Agency services, you are responsible for both time schedule and budget.
For the CM offering At Risk services, you may be responsible for every facet of a project, from design to the finished product.
While much of your attention is focused on getting the project constructed on time and on budget, the complications of design and construction create a great deal of liability. With so many people involved in the design and construction process, managing the project without design errors or construction defects can be difficult. Realizing this risk, most construction managers see the advantage of carrying professional liability Insurance (E&O). With professional liability insurance in place, you are protected against any negligence or errors for which you are responsible. You are also protected from any error, omission or negligent act from design services for which you may be (actually or allegedly) responsible.
How PDI Helps
At PDI, we put our years of experience to work helping to protect construction managers. We realize that without adequate coverage, a mistake can put a company and project at risk.
PDI works with all of the insurance companies writing this coverage. We understand the services you offer and will negotiate the best coverage and pricing for your firm.
A professional liability insurance policy is certainly essential for any CM doing business today. Equally important, is a corporate policy for the review of contracts. The insurance industry knows full well that a good contract is the best possible beginning to any project. Unfortunately, we don’t see a lot of good contracts today. Project owners know that leverage is on their side and often times put forth a one sided contract. At PDI, we will not only review contracts for you, we’ll also recommend changes. Beyond that, we’ll help you understand the issues we have with the contract so that they can be properly negotiated. At the end of the day, most bad contracts don’t benefit anyone.
Big Changes In Today’s Project Delivery
For many years now Design/Bid/Build was the delivery method used on most projects. With Design/Bid/Build, the project owner has a contract with the prime designer and a contract with his general contractor. This delivery method is still used the most today but Design/Build delivery is gaining significant ground. In this delivery method the owner has a single contract with a CM, a general contractor or their architect. The prime party will then be responsible to contact out the design and construction services.
Most insurance agents and brokers don’t know or understand the significant differences with delivery methods or the differing contracts used on these projects. This is critical information and unless your insurance broker has considerable knowledge and experience, they can’t possibly get your firm the proper coverage and pricing. PDI has a number of domestic and Lloyds’ of London programs we work with as well as exclusive programs for Design/Build Contractors and CM at Risk firms. Professional liability for Construction Managers, Design/Build Contractors, Architects and Engineers is the only line of coverage we write and we have been specializing in it for nearly 35 years. Go to the best: contact PDI and let us go to work for you.