Professional Liability

What is professional liability for contractors?

Professional liability — errors and omissions (E&O) — covers claims that your professional services caused a financial loss: design errors, wrong specifications, project management mistakes, and faulty advice. It protects the thinking side of your business, where general liability protects the physical side.

As more contractors take on design-build work, construction management, and value engineering, professional exposure grows. If you make design decisions, stamp drawings, or advise clients on specifications, a design defect claim lands on you — and GL won’t respond.

What it covers

• Design errors and omissions — mistakes in plans, specifications, and calculations you provide.
• Design-build exposure — professional liability arising from projects where you control both design and construction.
• Construction management — claims from scheduling, coordination, and oversight decisions.
• Negligent advice — recommendations on materials, methods, or specifications that cause a loss.
• Legal defense — defense costs for covered professional claims.

Who needs it

General contractors doing design-build or construction management, and specialty trades that design what they install — think electrical contractors designing systems, or HVAC contractors performing load calculations and system design. If your contracts include design responsibility, owners increasingly require E&O.

How much does professional liability cost?

Premiums depend on your services, revenue, and the design responsibility in your contracts. Trade contractors with limited design exposure often find it surprisingly affordable. Get quotes here and we’ll match coverage to your actual services.

Frequently asked questions

I’m a contractor, not an architect. Do I need E&O?

If you perform design-build work, make design decisions, or provide specifications, yes — design claims are excluded under general liability regardless of your title.

What’s the difference between GL and professional liability?

GL covers physical outcomes — injuries and property damage. Professional liability covers financial losses from errors in design, advice, and management, even with no physical damage at all.

Do project owners require E&O for design-build contracts?

Commonly, yes — design-build RFPs typically specify professional liability limits alongside GL and umbrella requirements.