Comprehensive Coverage for Construction Professionals

Professional Liability Insurance in New Jersey

Protect your business from claims alleging errors, omissions, or negligence in your professional services, design work, or expert advice.

Overview

Coverage for Your Professional Services

Professional liability insurance (also called E&O) protects contractors who provide design services, project management, or professional advice. Unlike general liability which covers physical damage, professional liability covers financial losses from errors in your professional work. With the growth of design-build delivery in Bergen County, this coverage is increasingly important.

  • Coverage for design errors and omissions
  • Protection for professional advice
  • Defense costs included
  • Prior acts coverage available
  • Project-specific policies available

Quick Facts

Quote in 15 minutes
A+ rated carriers
Local agents available
NJ licensed & regulated
Coverage Needs

Construction Professionals Who Need E&O

Any contractor providing professional services needs coverage

Design-Build Contractors

Combining design and construction services

Construction Managers

Providing professional management services

Engineering Contractors

Contractors with in-house engineering

Specialty Design Trades

HVAC, electrical, or structural design work

BIM/CAD Services

Contractors providing modeling or drafting

Consultants

Construction consulting and expert services

Coverage Details

What Professional Liability Covers

Design Errors

Mistakes in plans, specifications, or drawings

Professional Negligence

Failure to meet professional standards

Misrepresentation

Incorrect professional advice or information

Copyright Infringement

Unintentional use of protected designs

Breach of Contract

Failure to deliver promised professional services

Defense Costs

Legal fees even if claims are groundless

Construction Defects

Physical damage from poor workmanship (needs GL)

Bodily Injury

Physical injuries (covered by GL)

Benefits

Benefits of Our Professional Liability Coverage

Claims-Made Coverage

Covers claims made during policy period for past work

Defense Coverage

Legal defense costs outside policy limits

Contractual Liability

Coverage for liability assumed in contracts

Worldwide Coverage

Protection for projects anywhere in the world

Innocent Party Protection

Coverage despite partner's errors

Tail Coverage Options

Extended reporting periods available

Pricing

E&O Insurance Premium Factors

Type of professional services
Annual revenue from design work
Years of experience
Claims history
Project types and size
Policy limits and deductible
Territory of operations
Risk management practices

Get an accurate quote based on your specific needs

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Real Examples

Real Professional Liability Claims

HVAC Design Inadequate

E&O covered redesign and retrofit costs

Outcome: $150,000 claim resolved

Structural Calculations Error

Professional liability paid for corrections

Outcome: $275,000 in additional work covered

Code Compliance Oversight

E&O covered permit delays and redesign

Outcome: $85,000 in costs covered

FAQ

Common Questions About Professional Liability Insurance

Do I need E&O if I have general liability?

Yes, general liability excludes professional services. If you provide any design work, specifications, shop drawings, or professional advice, you need E&O coverage. Many design-build contracts specifically require professional liability insurance.

What's the difference between occurrence and claims-made?

Professional liability is typically claims-made, covering claims filed during the policy period regardless of when the error occurred (with retroactive date). General liability is occurrence-based, covering incidents during the policy period regardless of when claimed.

Can I get project-specific professional liability?

Yes, for larger design-build projects, we can arrange project-specific professional liability. This is often required by contracts and can be more cost-effective than annual policies for contractors who rarely do design work.

What about subconsultant work?

If you hire design professionals, ensure they carry their own E&O. Your policy may provide some coverage for their work, but it's best to require certificates and additional insured status. We can help structure proper risk transfer.

How much E&O coverage do I need?

Coverage needs depend on project size and contract requirements. Typical limits range from $1 million to $5 million. Design-build projects often require limits matching the project value. We'll analyze your contracts to recommend appropriate coverage.

Related Coverage

Complete Your Protection

Consider these additional coverages for comprehensive protection

General Liability

Essential companion to E&O coverage

Learn More

Contractor Bonds

Performance bonds for design-build

Learn More

Cyber Liability

Protection for digital design files

Learn More

Ready to Get Started?

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