Professional Liability Insurance
What If a Contractor Gives Bad Advice and Gets Sued?
The lawsuit would be a professional liability claim — and without PL coverage, you’d be defending and paying out of pocket. GL won’t cover advice-based claims.
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What happens if a contractor gives bad advice and gets sued?
When a client relies on your professional advice and suffers financial harm, they have grounds for a professional liability (negligence) claim against you. The fact that you didn’t charge separately for the advice, or that it was given informally, doesn’t prevent a lawsuit.
Without professional liability insurance, you’d pay for your own legal defense (easily $50,000–$200,000 for construction disputes) and any settlement or judgment — personally, with no insurer support.
With PL coverage, your insurer assigns a defense attorney, pays legal costs, and covers any covered settlement up to your policy limits. For a $3,000/year premium, this protection is extraordinarily valuable.
Ready to explore professional liability coverage?
Trade Safe shops dozens of A-rated carriers to find the right professional liability policy for your contracting business.