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News February 9, 2021

CFC enhances E&O protection for US design & construction contractors

CFC announces a major upgrade to its errors and omissions policy for US-based design and construction contractors.

New additions to the broad protection that CFC’s policy already affords include costs for steps taken by the contractor to mitigate against a potential claim where work was not rectified, and an extension for artisan contractors to pick up claims arising out of faulty workmanship including cover for work, product or impaired property.

“Many design and construction contractors are under the misapprehension that they do not require professional liability cover or have any exposure to errors and omissions claims,” said Antony Aylett, US Professions Team Leader at CFC. “While they may not believe that they are providing professional services, anyone who is an expert in their field and who is paid for their services can be held liable for the work or advice they provide.

“General liability policies are triggered by accidents or unforeseeable events so won’t respond to any claim for financial loss caused by the professional negligent actions or advice of the contractor. An E&O policy will and the enhancements we’ve made to our policy mean that brokers can now access comprehensive cover for the exposures their contractor clients face.”

In addition to these enhancements to cover, CFC has also broadened the range of contractors it will cover to include demolition, drywall and carpentry professionals.

“The contractual obligations that design and construction contractors are facing simply to secure a job are becoming more and more onerous,” Aylett concludes. “It’s important that insurance brokers help their clients to understand where their risk exposures truly lie and whether simply providing a general liability policy would leave a gaping hole in the level of protection they actually need.”

CFC’s comprehensive E&O cover also includes subcontractor vicarious liability, contingent bodily injury and property damage, comprehensive legal cover and pollution liability. To learn more about CFC’s E&O policies: