Design & Build Professional Liability Insurance Coverage Explained
Who Buys Design & Build Professional Liability Insurance Coverage? Design & build professional liability insurance coverage is becoming increasingly popular in the Canadian construction & engineering industries as clients are increasingly looking for one organization to handle and be legal liable for all aspects of a project during all stages from design to construction completion.
Design & build professional liability insurance coverage is typically purchased by a construction company with a design arm or by an engineering firm with a construction arm.
Design & Build Professional Liability Insurance Coverage Claims Example
Facts from a real Canadian claims example are as follows:
- Contractor with design arm wins contract to design and build a building which includes the design and installation of a complex electrical system in the building.
- Contractor designs & installs the electrical system in accordance with the clients request.
- System doesn’t function due to design error.
- Building can’t be occupied on schedule and owner incurs significant downtime costs, but there is no bodily injury or property damage so a commercial general liability policy carried by most contractors can’t and won’t respond.
- Because the proximate cause of the downtime was the design error the design & build professional liability insurance coverage would respond to cover the lost revenue the building owner is holding the contractor responsible for.
Design & Build Professional Liability Insurance Coverage Extensions To Consider
- Consultation Coverage – Cost to bring in 3rd party experts and/or technical expertise
- Mitigation costs – which can include redesign, tear out, tear down and/or rebuild
- OHSA Legal fee reimbursement, reputation protection services, disciplinary hearing legal fees reimbursement etc.
For more information on design & build professional liability insurance coverage, an insurance quote or for more information on any commercial insurance products contact ALIGNED Insurance Today!
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