Professional Indemnity Coverage
Due to the complex process of designing and building various structures, many general and trade contractors do not perform in-house design, and rely on subcontracted professionals’ services.
While this business model allows for additional potential profit, it also introduces a new set of risks. Contractors are still held responsible to their client for professional acts, errors or omissions on the part of the subcontracted design professional. Contractors can rely on the design professionals’ insurance and contractual indemnity to protect them from a claim. However, what if the design professional ultimately cannot indemnify the contractor? That’s where Great American comes in to protect your client.
Our professional protective product covers bodily injury, property damage, legal expenses and clean-up costs resulting from pollution conditions associated with contracting services. This policy also provides coverage for liability associated with acts, errors and omissions arising from professional services. It can also provide coverage for liability associated with owned locations, non-owned disposal sites, and transportation of an insured’s products or wastes.
At Great American, we offer an exclusive focus on environmental insurance solutions to a wide variety of commercial customers, including contractors. Our team can uncover the hidden risks in your client’s operations and develop a custom program to protect them.
Claims Scenarios: Professional Indemnity Coverage for Contracting Services
Drilling Contractor – Raw Sewage
A subsurface drilling contractor caused a release of raw sewage into both soil and groundwater after failing to identify a sewer line before drilling.
The cleanup entailed the excavation of several tons of impacted soil and caused a number of nearby businesses to shut down for a few days when their basements filled with sewage.
Substantial claims for business interruption and cleanup costs were filed.
There is liability coverage for both ongoing contracting services as well as completed operations coverage to provide protection after the job is finished.
Drywall Contractor – Mold
A drywall contractor was hanging new drywall at a construction project when an employee accidentally drilled through a small water pipe located behind the wall.
The drywall contractor did not realize the water leak was occurring and a substantial amount of mold grew between the walls before anyone noticed.
The drywall contractor was held responsible for cleanup of the mold, as well defense of third party bodily injury claims.
Do you have companies performing similar contracting operations who are not protected for their environmental exposures? If so, let’s work together to analyze the environmental risks associated with your contractor. Contact our Environmental team to learn more.
This article appeared in the most recent Environmental Insider newsletter, produced by Great American Environmental. To receive future newsletters via email, visit this page to subscribe.
The claims scenarios are provided to illustrate an exposure you could encounter. The facts of any situation that may actually arise and the terms, conditions, exclusions and limitations in any policy in effect at the time are unique. Thus, no representation is made that any specific insurance coverage applies to these claims scenarios.
