Professional Liability Insurance
Real Examples of Contractor Professional Liability Claims
Real PL claims involve design errors, bad advice, and management failures — not physical damage. These examples illustrate the range of claims contractors face.
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What do contractor professional liability claims actually look like?
Example 1 — HVAC Sizing Error: A commercial HVAC contractor specifies an undersized system for a restaurant. The building never reaches proper temperature. Owner documents $85,000 in lost business during summer and sues for professional negligence. PL covers defense and settlement.
Example 2 — Design-Build Envelope Failure: A design-build GC creates envelope specifications for a new office building. Moisture intrusion causes mold within two years. Owner alleges design specification errors caused $400,000 in remediation costs. PL defends and partially settles.
Example 3 — CM Schedule Failure: A construction manager fails to identify a critical path conflict between two major subs. The resulting 3-month delay costs the owner $250,000 in extended financing. Owner sues CM for professional negligence. PL covers defense and settlement.
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