During the last economic downturn lending dried up and construction nearly came to a halt. In order to survive, many construction companies chose to diversify their services to appeal to more customers. The result has been that contractors are taking on more risk, especially professional exposures.
Recognizing this risk, larger owners and some national General Contractors are issuing bid specs requiring evidence of professional liability as a pre-qualification to bid on a project.
You may be unaware of your professional exposure. Asking the right questions will help you find out.
Below are "leading questions" to help your team qualify the extent of your professional liability exposure:
- Do you sign / perform design build contracts? If yes - direct professional exposure
- Do you have in-house designers or A&E professionals? If yes - direct professional exposure
- Do you perform CM Agency or CM At-Risk delivery? If yes - direct professional exposure
- Do you contractually indemnify for design negligence? If yes - direct professional exposure
- Do you provide value engineering, input, or use BIM? If yes - direct professional exposure
- Do you or your subs contract with A&E's? If yes - vicarious professional exposure
I have attached "Delivery Methods Table" to help you and your team navigate the newer requirements for Professional Liability. The above information and attached table are credited to UCPM Environmental Insurance. They are excellent resource for Contractor Pollution Insurance, you can visit them at www.ucpm.com or contact your insurance broker.
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Jerry Whitaker BA Marketing
President
Acrisure / Whitaker LaChance
Portage MI
(269) 324-7700
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