Contractors Protective Professional Indemnity

What if contractors and design builders could protect themselves from a broad range of professional liability exposures?

AIC offers professional liability insurance to protect contractors for losses arising out of the negligent performance of professional services for which the contractor is responsible, whether direct, incidental or contingent/vicarious.

Targeted customer profile

AIC tailors CPPI coverage to meet the needs of mid-sized and large construction customers including:

General contractors
Construction managers
Design-build firms
Heavy and highway contractors
Artisan/specialty trade contractors

Insurance Coverage Features

Coverage is provided for the professional services of a construction manager, whether offered through an at-risk or agency contract. This includes third-party claims against the contractor and, if the contractor is providing design build services, first-party losses for the subcontracted professional services in which a contracted design firm does not have adequate professional liability limits.
The CPPI policy can be composed of three coverage parts:

Coverage A: Third-party professional liability

Includes defense, mediation credit, domestic and global coverage

Coverage B: First-party professional indemnity

Responds excess of the underlying professional liability if the contractor suffers a loss, such as cost overruns, schedule delays and rework due to negligence by a design professional
Enables the insured contractor to recover incurred losses, regardless of whether there has been a claim by the project owner or third party
Difference in conditions (DIC) responds to losses to the extent that the policy is broader than the A/E underlying professional policies, subject to a self insured retention (SIR)

Coverage C: Contractor’s pollution liability (CPL)

Coverage is comparable with environmental markets

Policies are typically written on a practice/annual basis; project-specific policies are also available for purchasers of an annual corporate program

Project specific coverages support the duration of a construction project with automatic extended reporting periods (ERP) available and cost significantly less than trying to replace the Architect or Engineer’s primary insurances

Program options

Intermediate and large deductibles
Customized limits and sublimits based on customer’s risk appetite
Limits of liability up to $50 million

Why AIC

Leadership and influence through active participation in key construction and insurance industry associations
Professionals who specialize in the industry and understand the technical and operational aspects of construction
Offers creative solutions aimed to reduce customer’s cost of risk while enhancing their profitability
Innovative coverage policies and extensions that address industry-specific needs
Has carriers with customized programs that fit the unique risk appetite and coverage needs of the customer
Represents carrier with integrated underwriting, risk engineering and claim account teams
Domestic and global coverage capabilities

For more insurance information

For more information on contractor’s protective professional indemnity insurance, please contact your agent at AIC Insurance Services at 616-676-4000 or toll-free at 888-695-9777

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