Contractors Professional Liability Insurance Coverage

Modern contractor delivery methods create a wide range of professional service exposures: design-build design responsibility, value engineering recommendations, constructability review, construction management coordination, schedule management, cost estimating, shop drawing review and approval, design-assist engineering input, and owner's representative functions. Each of these is a professional service that can give rise to a professional negligence claim.

In design-build, the contractor holds prime responsibility for both design and construction under one contract. When design errors occur, the project owner's claim runs against the design-build entity — which is the contractor. This fundamentally changes the professional liability exposure from ancillary to primary. Design-build contractors need professional liability coverage structured specifically for design-build delivery.

Common claims include: value engineering recommendations that lead to performance failures, design-build specification errors, construction manager coordination failures that cause delays and cost overruns, errors in constructability review that result in field problems, shop drawing review errors, and schedule management failures where the CM's professional decisions are alleged to have caused the delay.

Yes — this is a critical function of the coverage. Professional liability is claims-made, meaning claims filed during the policy period for acts going back to the retroactive date are covered. Continuous renewal maintains prior acts coverage on completed projects. A professional negligence claim arising from a project you completed three years ago is covered as long as you have maintained continuous professional liability coverage with an adequate retroactive date.

Minimum limits vary by project type and owner: $1M per claim is a common floor; $2M to $5M is standard for major commercial, institutional, and public works projects; $5M to $10M or more is required on large infrastructure, healthcare, and government design-build projects. We structure limits to meet your specific project contract requirements.

Yes. Contractors Choice Agency holds licenses in all 50 states and writes contractors professional liability programs coast to coast. NPN 8608479.

We work with AM Best A+ rated specialty carriers with proven appetites for construction professional liability risks. Carrier selection depends on your specific operation, project types, professional service scope, and state.

Contact us immediately at 844-967-5247. We provide 2-hour claims response during business hours and will guide you through notifying your carrier, preserving documentation, and protecting your coverage position from the first day of a claim.

Yes. Monthly payment plans are available through most carriers and premium finance options. We walk you through payment options when presenting your professional liability quote.

Founded in 2005 — over 20 years insuring specialty contractors. Contractors professional liability programs have been a core focus throughout our history as contractor project delivery methods have evolved.

Basic information needed: business name, years in operation, annual revenue, project types and sizes, professional service scope (design-build, CM, design-assist, value engineering), states you work in, current E&O coverage if any, and claims history for the past five years.

Yes. New contracting firms can obtain professional liability coverage, though the retroactive date will be the policy inception date with no prior acts coverage initially. Coverage builds as you renew. We explain how this affects your protection and what to watch for in your first few years.

We are experienced with project-specific professional liability requirements — minimum limits, project-specific endorsements, additional insured language, and retroactive date provisions. Tell us what your contract requires and we will confirm your policy meets those requirements before binding.

Yes. Professional liability coverage typically applies wherever you perform professional services. Workers compensation requires separate state filings where you have employees, but professional liability follows your operations nationwide.

844-967-5247, Monday through Friday 8am to 5pm Mountain Time.

12220 E Riggs Road Suite #105, Chandler, AZ 85249. We serve contractors nationwide by phone and online.

josh@contractorschoiceagency.com. We respond to professional liability quote requests within 15 minutes during business hours.

Yes. Submit the online quote form at contractorsprofessionalliabilityinsurance.com/quote and we will respond within 15 minutes during business hours. For fastest service, call 844-967-5247 directly.

Yes. We help manage certificates of insurance for your subcontractors and issue certificates to project owners as required by your contracts — including professional liability certificates with the specific language and limits your project owner requires.