Clients expect many general contractors to present them with a design of the proposed build. While some contractors have a designer in house, many contractors subcontract out the design aspects of the build. Either way, the contractor is now put at risk for any errors in the design outside of the build itself. Design build insurance provides professional liability coverage often lacking in general liability policies.
Why Add a Design Build Policy?
Contractors generally protect against liability through a commercial general liability policy. However, these policies generally don’t cover:
- Economic damages
- Monetary damages
- Professional liability
For those that do cover professional liability, only tangible damage to property or bodily injury is covered. Economic damages make up over half the claims made against design professionals. Design build insurance protects contractors against professional liability claims not covered by a commercial general liability policy.
What Does a Design Build Policy Cover?
Relying on a design professional’s insurance to cover you and your business even if contracting design work out is a mistake. Most of their policies only cover that designer. If your business has designers in house, the need for design build insurance is greater. The policies cover a variety of professional liabilities. Since they are non-standard policies, coverage can be tailored to the individual contractor’s needs.