The construction industry continues to boom since the housing market bounced back following the 2008 crisis. A contractor company often works on more than one project at a time. Unfortunately, an error at one point in the project has a rippling effect throughout. An owners protective professional indemnity policy works on a per project basis helping cover those potential financial losses.
A simple professional liability policy for a particular project does not cover other party’s errors. If the architect neglected to include something, as the owner of the construction firm, you could be held liable for that error.
This type of policy should be seen as excess coverage. The errors & omissions policy lists the project owner as of the named insured alone. No other professionals are listed making sure the project owner has the protection they need in the event an error or omission occurs.
The indemnity policy is another way to protect the liabilities of the project owner above and beyond a standard professional liability policy. Each project has its own liabilities. Having a policy for each policy covers that project’s liabilities in the event a claim is filed for negligence.
Don’t be left holding the proverbial bag. Have an owner’s protective professional indemnity policy on each project to ensure your investment.