In recent years, construction management firms have consistently undertaken expanded roles in building projects. These firms often serve as the pivotal coordination centers for design professionals, architects and owners. Additional and expanded services offer both opportunities and risks. A construction management insurance policy will protect the management firm from increasing risk liability.
A construction management insurance policy safeguards construction management firms with comprehensive coverage including:
1. Project-Specific Coverage
Each building enterprise requires specific consultants and subcontractors. A specialized insurance program addresses each unique activity and associated vulnerabilities.
2. Tailored Description of Services for Each Unique Risk
Construction management firms may hire architects, engineers and other subconsultants to deliver the design for a structure. In this role, the firm can be held liable if an individual does not perform with appropriate standard care. Specialized insurance expertise secures the appropriate policy coverage depending on the types of contracts and activities required.
3. Professional Liability Program Specifically Designed for Construction Management Firms
A construction management firm is liable for the actions of hired contractors. Errors and omissions insurance, also known as E and O insurance, is professional liability insurance that covers third-party claims arising out of negligent acts, errors or omissions in the performance of professional services. This insurance can help cover expensive legal costs or settlements.
Construction management firms are the point of contact, communication and coordination for many building projects. A robust construction management insurance policy is crucial protection for the construction firm, employees and subcontractors in an industry which provides vital services impacting our economy.