When a building project is underway, there is usually more than one group of workers involved in the total project. The liabilities and risks increase in correlation to the different companies, workers, or parties that will work with the build or are on-site during construction. With contractors professional liability, or CPL insurance, there is protection for the building professionals and contractors against construction errors.
With CPL, general coverage protection for the primary contractor is extended to third-parties that are employed by the contractor. This could include architects, engineers, and other vendors. The coverage addresses the complicated process of building, where many parties are involved to bring a project to completion. This increases the risk of errors, so purchasing a plan is a strategic investment.
Third-Party Hire Policies
A contractor is generally the overseer of a project, hiring out certain aspects of a project to different specialists. Plumbing, electricity, landscaping, roofing may all be contracted out, but a CPL policy would still be in effect to protect the contractor from mistakes these hires may make.
The information found at hilbgroupfl.com states that a CPL policy is different from a builder’s risk policy, so speak to an agent before assuming your situation will be covered. Whether your job is large or small, be sure that you take care of the exposures presented, especially if you don’t want to lose future bids or business.