Who will compensate for negligence, error or omission? Who will provide a response for a claim due to physical damage to the works, causing delay in the delivery of the project? What about countless other scenarios that professional liability insurance may provide you insurance coverage against?
In fact, this insurance may, among other things, complement certain coverage gaps according to the contractor's all risk insurance policy.
The insurance coverage in the professional liability policy for contractors is problematic and partial. If it were really possible to purchase full coverage, then a long list of performance risks could be insured - and this is not the case. The policy provides coverage for the insured's profession as a contractor, but in most cases it contains an 'rework exclusion', an exclusion that removes a significant portion of possible claims from coverage. Nevertheless, in most tenders, both public and private, clients require professional liability insurance in addition to contractors insurance policy as a threshold condition for engagement.
The coverage in the policy is for claims under the Torts Ordinance (New Version) 1968, for breach of professional duty, including claims for pure financial loss (as opposed to physical damage that is covered under the contractor's all risk insurance policy), as a result of an act or omission of the contractor or those acting on their behalf. However, the coverage is subject to fundamental exclusions in the policy and often does not provide a solution as would be expected, due to these exclusions. Some damages in contracting works may be defined as financial damage: crooked construction, incorrect calculations and measurements, construction not according to plans, etc.
Third-party claims for such damages are not covered in the contractor's all risk insurance.
Sometimes they can be partially covered under professional liability insurance in relation to consequential damage to third parties, according to the terms and exclusions of the policy.
Defining insurance coverage in a professional liability insurance policyThe coverage for the insured is for his liability under the law due to an insured event that occurred after the retroactive date specified in the policy and for which the claim was filed against the insured and delivered to the insurance company within the insurance period. This means that the policy is in effect on a: Claims Made basis, i.e. on the 'date of filing the claim' basis, (as opposed to the 'date of occurrence' basis that is common in third-party and employers' liability insurance). Therefore, in order for a claim to have insurance coverage in the policy, two cumulative conditions are required: A. The claim must be filed while an insurance policy is in effect. B. The date of the event must be within the retroactive date period specified in the policy. For more information on the importance of the retroactive date, |
Must the client be provided with professional liability insurance?Need a certificate of insurance signed with professional liability insurance? As an insurance agency that deals extensively with professional liability insurance for contractors, we are aware of your difficulty in obtaining professional liability insurance. You should contact us to find a solution. |
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Professional liability insurance for contractors and developers
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Purchasing Professional Liability Insurance Policy - A Difficult Task!
Anyone who has tried to purchase a professional liability insurance policy in the past has realized that the task is difficult. Not when things are in our hands!
This is especially true for contractual contractors who, in the absence of an insurance policy, cannot participate in or win a tender, or contractors involved in TAMA 38 (Urban Renewal Plan), which is among the types of projects that insurance companies are not enthusiastic about insuring with professional liability and product liability insurance due to the increased risks.
Nevertheless, when we take matters into our hands, the approach of insurance companies changes. The willingness of insurance companies to open their doors to us was born on the basis of expertise, extensive experience, and our deep understanding in both fields - the insurance industry and the construction industry. Thus, as our client, you are guaranteed several clear and proven advantages when purchasing a professional liability insurance policy:
✔ Cost - Based on our professional standing with insurance companies, in most cases our clients enjoy reduced costs of policies such as contractors insurance, professional liability insurance, or product liability insurance. This is a significant cost reduction.
✔ Coverage scope - The scope of coverage is a result of the experience we have accumulated over 25 years as insurance agents in the construction industry. We identify possible "troubles" that no one has thought of at all, and develop creative solutions that will be acceptable to the insurer on one hand and protect the insured on the other. And in the bottom line, you get the most optimal coverage. And no less important - everything is tailored and agreed upon before signing the policy to prevent disagreements and surprises when an event occurs (heaven forbid).
✔ Close guidance - When an event requires activation of the policy - we are not alone. A team of experts has been working alongside us for many years: insurance assessors, experts and engineers, and if necessary, experienced accident investigators and lawyers who will assist you in case of a serious accident. And they know what's important: how to protect you, how to minimize damages, and how to maximize your rights from the policy.
Product liability insurance
Do you have contractor insurance? Great, but what about events that occur after delivery? For example, accidents that occur when the contractor's policy no longer applies? This is where product liability insurance comes into play.
A building is a product, according to the Defective Products Liability Law, 1980, and it must also be insured.
What is important to include in product liability insurance and how will you ensure that the policy provides a comprehensive solution?
That's what we're here for.
Contractors' work insurance with extended insurance coverage
This is the basic policy for every construction project and includes: property and works insurance, third-party insurance and employers' liability insurance . Since each project has its own 'specialties', the need to purchase extensions that ensure optimal insurance coverage also varies. From this it is clear why the contractor's work insurance policy should be built by an agent who understands the matter and can make the difference between the broadest coverage and a situation in which, in practice, the contractor's work insurance policy you have does not adequately protect you from heavy damages and expenses.
Combined policy for professional liability and product liability insurance
A combined policy for professional liability and product liability insurance combines two insurances of great significance to those engaged in contracting work – professional liability insurance on the one hand and product liability insurance on the other. As expected, two are better than one . The policy, as a combined product, includes many advantages compared to the separate or individual purchase of each of the products. When both coverages "live" under the same roof, insurance management is more efficient. It is based on a common insurance period, is easy to renew and is paid for by a single premium (sometimes with cost savings).
Directors and Officers Insurance
Shareholders, senior employees, management, suppliers, customers, authorities, receivers, liquidators, clients, competitors and the list goes on. The liability of officers and directors exposes them to claims for unlawful acts committed by them in the course of their duties. The effective response to these legal proceedings is a protective envelope in the form of directors and officers insurance . A policy that is critically needed in a setting where personal claims against directors and officers are common, and when the finger on the legal trigger is light, very light.
Third party insurance
Third-party insurance is designed to cover you against damage caused to the body or property due to an accident or insured event on the construction site and its immediate surroundings. Due to the complexity of the work, the constant changes, the multitude of contractors, workers, equipment and, above all, the differences that make each construction project unique, even in this insurance the insurance company will strive to include exceptions, limitations and protection requirements for the most part. As a leading insurance agency in the construction industry, we have the tools to obtain optimal insurance coverage for you...
