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. Trade Safe builds PL coverage with claims-made mechanics explained instead of assumed, so a coverage gap does not surface only after a claim.
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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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