The contractors professional liability insurance market is growing, but many contractors who have a professional exposure are not buying coverage, according to a new survey by Ames & Gough, based in Washington, D.C. Most insurers offering contractors professional liability feel that as many as 50 percent of contractors needing coverage aren’t purchasing it due to a lack of understanding about the risks and how coverage responds, the survey revealed.
“As the delivery systems for providing design and construction services change, contractors are increasingly taking on risks that some might have previously considered to be the domain of architects and engineers,” said Dave Collings of Ames & Gough. “Whether it be the increased use of design-build, expansion of construction management approaches, or the burgeoning utilization of building information modeling (BIM), contractors must be evaluating their risks in a new way.”
Among the other findings of the survey are:
* Insurance underwriters consider architect or engineer-led design-build projects to be the most risky “professional” exposure for contractors, followed closely by construction management at risk.
* The least risky exposures are agency construction management and pre-construction services.
* The market for contractors professional liability coverage exceeds $250 million of premium and may be as large as $1.1 billion.
* Zurich has the largest market share followed closely by Lexington and CNA.
Copies of the survey are available on request by e-mailing dcollings @amesgough.com
Source: Ames & Gough
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