Construction management liability insurance is insurance that is purchased by a Construction Manager to ensure coverage in the event that one of the contracted companies — general contractor, architect, engineer — doesn’t perform according to standards and an error results in cost. An insurance policy specific to a Construction Management firm must be specially written to cover their unique liability, as their responsibilities and services are unique in the field. Construction Managers act as a point person for the entire project; they report directly to the Owner of the project, and all others engaged to do work on the project report to them. Thus they are responsible for the entirety of the project, but they aren’t the designer or producer of the finished project.
When purchasing construction management liability insurance, one must be sure that the agents they’ve chosen are experienced, qualified, and business savvy. This type of insurance isn’t offered by every agency; it would behoove a construction manager to ensure that they’re dealing with a company with expertise in the construction industry in order to get the best quality and the most useful coverage for their expense. Policies are available in many different amounts and with different coverages that can be optimized to suit your business. If you’re in need of liability insurance for your Construction Management firm, research your options carefully.