For many consulting services, professional liability insurance is a must. These services may risk a lawsuit if their professional advice causes injury, property damage, or a business loss to their clients. However, the scope of professional liability insurance extends beyond the repercussions caused by erroneous advice. Thus, professional liability insurance for artisan specialty contractors is a must-have.
More generally, professional liability insurance covers liability arising out of any error or omission on the part the business or person. The error or omission can manifest as inadequate work or negligent actions that ultimately harm the client. Although the artisan specialty contractor doesn’t normally act as a consultant, the contractor’s mistakes, or inadequate work can certainly harm the client and lead to a lawsuit.
Here are two examples:
An electrician wires up a number of consoles that control the safe operations of key machines in a cement plant. While working, he’s distracted by a plant employee and never completes his wiring work. This omission later causes a serious injury and delays plant operations for a week, resulting in thousands of dollars of lost revenue. His client subsequently takes him to court.
A plumber is hired by a general contractor to do plumbing work on a condominium under construction. Poor workmanship by the plumber causes water leakage beneath the slab foundation of the building. This leads to foundation damage requiring costly repair. Leakage elsewhere in the building causes extensive mold damage that requires additional repair work. However, the condominium general contractor didn’t include the plumber as an additional insured, with the result that the plumber is held liable for the damage.
Other artisan specialty contractors such as carpenters, roofers, and landscapers can find themselves in similar situations where their mistakes, omissions, poor workmanship, or negligence can harm their client. It doesn’t matter that their services are tangible rather than informational as in the case of a consultant. Unlike many other types of liability, the harm to the client may not occur until well after the artisan specialty contractor’s work is complete. This could be weeks or even months.
Prime insurance company understands the liability risks faced by skilled contractors.
If you have questions about excess insurance coverage for artisan specialty contractors, please contact us.