Because injuries are common on construction sites, most employers carry general liability and workers’ compensation insurance. However, these policies will not protect you from all the risks your business faces. Here are three types of claims that could be disastrous without also having construction E and O.
Even if you make safety a priority, simple mistakes can happen. For example, if a worker forgets to tighten a single screw, a wooden beam could fall and hurt someone. General liability would not cover the resulting court costs and medical bills if the worker were found to be negligent.
Construction involves the use of equipment such as cranes that are inherently dangerous. Strict liability occurs when people are injured as a result of this equipment, regardless of whether workers followed safety protocols.
Breach of Contract
If a construction company does not follow the contract it has with a developer, the developer can sue for breach of contract. Sometimes these claims occur long after the project is complete if the developer discovers defects in the finished product.
No matter how good you are at running your construction business, any of the above scenarios could occur without warning. If you have an errors and omissions policy, you do not have to worry that one will result in a lawsuit you cannot afford.