June 27, 2023 –Today’s construction industry is faced with numerous challenges given ongoing supply chain issues, inflationary concerns and labor shortages. The result is a complex environment where contractors are often taking on additional responsibilities and facing new risk exposures that traditional policies exclude.
The RB Jones Professional team developed and launched ProConstruct, an exclusive program providing Professional Liability coverage to a broad range of professionals within the construction lifecycle, filling coverage gaps often excluded by General Liability and Professional Liability policies.
The ProConstruct policy includes updated language to address a number of emerging issues:
- Increased legal liability for contractors for negligence resulting from the management of a project, including managerial oversight, constructability reviews, subcontractor selection and scheduling. ProConstruct includes language specific to managerial oversight, subcontractor selection and constructability review, adding to the definition of professional services while removing the licensing requirement. Broader language enables ProConstruct to address coverage gaps because these services are typically excluded within the general liability policy and were not previously considered part of a contactor’s responsibilities.
- Greater use of and integration with technology across construction projects, from design and installation of “smart” HVAC systems to robust data centers, has resulted in expanded policy language to include coverage for technology services and products, as well as network security as part of a contractor’s professional services.
- Need to preserve the relationship between the contractor and the project owner requires language that provides for rectification expense coverage and protection for claims that allege faulty workmanship from negligent managerial oversight. Both coverages are vital for the contractor as it ultimately keeps projects on time and avoids cost overruns, which are two of the most common causes of loss.
- Growth in use of less-experienced subcontractors due to labor shortages and inflationary pressures has led to project delays, extended project delivery times and worker safety concerns. A contractor protective indemnity clause provides dedicated excess limits over subcontractor policies. This helps prevent “claim creep” from uncovered claims eroding the contractor’s professional liability limits. A protective also forces quicker settlements from subcontracted staff and ensures projects remain on track.
At RB Jones, our team is committed to providing best-in-class, industry-leading solutions leveraging deep underwriting expertise and long-standing carrier relationships.