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Construction Insurance Bulletin


By May 1, 2014No Comments

As a construction manager, you face the threat of litigation every day. “Just because you think you’re doing a good job, and even if you are, that’s no guarantee you won’t be sued,” warns a senior officer of a major insurance company.

These suits can and do target construction firms of all sizes – not just the big guys.

In one case, the manager of a small firm was working with the owner of a new high-end residence project to develop a project budget. When bids came in at 50% over budget, the owner sued the manager.

Or consider this example: During construction of a new school, an employee of a subcontractor fell from scaffolding and was injured. The construction manager had agreed to “supervise construction and overview safety programs developed by the contractor…” The injured worker sued his employer, the project owner, the design team, the general contractor – and the construction manager, whose piece of the settlement came to $200,000.

Construction managers can provide a variety of services, ranging from contract preparation and negotiation through cost estimation to code compliance, which will create serious liability exposures. Professional liability insurance can protect you and your business against expensive and aggravating litigation. Coverage also includes defense costs.

Carrying professional liability frees you up to do your job by delegating the management and resolution of any claims to the insurance company – whose experts can also provide contract reviews and advice for you and your potential clients. Many companies also offer construction managers advice on risk management to help keep potential exposures from turning into claims.

We’d be happy to help you select a policy that provides comprehensive protection at a cost you can afford. Feel free to get in touch with us.