Contractors Professional Liability in a COVID-19 Era
But it’s not all good news for an industry that was expected to experience a downturn even before the pandemic. In addition to the 4 percent drop in construction starts predicted by the 2020 Dodge Construction Outlook, other likely challenges surround the industry, including the ongoing shortage of skilled labor as well as the overall rise of contractor’s claims within the commercial, habitational real estate, manufacturing, health care, and institutional sectors.
A competitive marketplace with stable premiums, contractor’s professional liability (CPrL) policies have subsequently become increasingly popular for their ability to potentially, depending on the facts and circumstances of the loss and the wording of the specific policy, cover the damages arising from acts, errors, and omissions in the professional services performed by or on behalf of any construction firm. In recent months, additional coverage such as faulty workmanship coverage forms has even been added to some policies to protect against the errors and omissions resulting from the workmanship of the insured’s self-performed work and/or use of defective materials or products. Read more.