Professional Liability Insurance
When Do Contracts Require Professional Liability Insurance?
Contracts for design-build, construction management, or consulting services commonly require PL. Review every contract before signing — requirements vary widely by project type and owner.
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When do construction contracts require professional liability insurance?
Most standard construction contracts (AIA, ConsensusDocs) for design-build or CM delivery include professional liability requirements. Commercial owners, public agencies, and sophisticated private developers are most likely to require PL.
Common requirements: $1M per occurrence / $2M aggregate minimum, continuous coverage maintained throughout the project, tail coverage for 3–5 years after substantial completion, and certificates provided before contract execution.
Review your contracts before signing. Failing to carry required PL limits is a contract breach. Trade Safe issues certificates same-day and can help you meet contract insurance requirements quickly when a project is ready to move.
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