Professional Liability Insurance
Do Spec Home Builders Need Professional Liability?
It depends. Pure spec builders following standard plans have minimal PL exposure. Spec builders who custom-design homes, select and specify systems, or provide buyer consultation have real PL exposure.
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Do spec home builders need professional liability insurance?
Spec builders who purchase plans from a licensed architect and build strictly per those plans have most professional liability resting with the architect. The builder’s exposure is primarily workmanship (GL) and construction execution.
However, spec builders who: design homes in-house, make material and system selections that carry performance implications, advise buyers on custom modifications, or guarantee energy performance — are providing professional services that create PL exposure.
HVAC sizing, energy system specifications, and structural modifications recommended to buyers are the most common professional liability trigger points for spec builders. If any of these apply to your business, a PL policy is appropriate.
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