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5 Best Contractors Professional Liability Insurance for 2023

Professional liability insurance for contractors is designed for people who offer professional advice or services. This can range from plumbers and engineers to construction workers and general contractors. In addition, it provides financial protection if a lawsuit is brought against you from an unsatisfied client. 

This type of professional liability insurance is essential for any contractor who works in design or construction management. If someone who works under you also performs this work, you also need it. Below are a few of our favorite companies for contractors professional liability insurance.

The 5 best contractors professional liability insurance companies

  • CoverWallet: Best for quote comparisons
  • Hiscox: Best for contractors with unique needs
  • biBERK: Best for inexpensive contractors insurance
  • Chubb: Best for customer service
  • Zurich NA: Best overall professional liability insurance

CoverWallet: Best for quote comparisons

One of the best ways to see several quotes is working with a broker like CoverWallet. This is an online broker that provides contractors with professional liability insurance and many other forms of business insurance. 

While the company was only started in 2015, it has become quickly popular due to its quick quotes and versatility.

When getting a quote from CoverWallet, it takes only a few minutes. Once you finish putting in your information, several quotes are provided. When you choose a provider and pay premiums, you can even file your claims online.

However, remember that only partners of CoverWallet will be shown, so it’s still good to look at other options. 

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In many cases, CoverWallet will bring up several quotes from different companies. Unfortunately, we were provided with the information above when trying to get a quote for a general contractor who needs professional liability insurance.

However, you can still choose to get a quote by phone. Speaking with a broker allows you to offer more information about your situation to get fitting quotes.

Hiscox: Best for contractors with unique needs

Hiscox is a significant insurer for businesses and contractors and offers contractors professional liability insurance. If other types of business insurance are needed, this company can also provide those. The online quote process is simple and easy to move through. It will even recommend other types of insurance you might need.

Keep in mind that Hiscox doesn’t specialize in a single industry, like construction or engineering. However, this means that most contractors will qualify for their insurance policies. In addition, their contractors professional liability insurance covers you in cases where someone claims damages related to negligence or omissions, whether you committed those things or not.

You can see the quote we were provided through a quick form when using Hiscox below. However, what you do and where you are located will impact your quote.

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biBERK: Best for inexpensive contractors professional liability insurance

Another top option for contractor professional liability insurance is biBERK. It’s designed for construction contractors, but products are also available for those in other industries. The coverage extends to employee injuries, customer’s properties, and other risks associated with contracting work.

In addition, biBERK also offers other types of insurance that may be useful, such as workers’ compensation, business owners’ policies, commercial auto, and general liability insurance. Getting a quote is simple and can be done online or over the phone. Once you choose a policy that works for you, you can buy it, manage it, and make claims online.

We filled in our information to get a quote from biBERK, and you can see the results below. This is based on a construction project manager who doesn’t have contracted employees.

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Chubb: Best for customer service

Chubb provides many types of business insurance, including contractors professional liability insurance. This insurance is made specifically for contractors involved in design-build or construction management positions. Chubb has excellent financial strength, a flexible underwriting approach, and expertise in both claims and underwriting.

When choosing contractors insurance from Chubb, you also get free pre-claim assistance. In addition, there is joint venture coverage, predecessor firm coverage, and innocent insured coverage. A 60-day reporting period and supplemental coverage for insured expense reimbursements of up to $300 each day are available.

JD Power and other reputable sources ranked this company well for customer service. However, since agents do the work, the one you end up speaking to will determine how helpful the assistance they offer is. 

Zurich NA: Best overall professional liability insurance

Zurich North America offers many types of contractors professional liability insurance. In addition, they provide umbrella, builders risk, workers’ compensation, cyber risk, marine, and management liability insurance offerings as well. The company is global but counts Farmers Insurance as one of its subsidiaries. 

Unfortunately, you cannot get a quote online using Zurich. 

Instead, you will need to make a call to learn more. This can make it more challenging to determine what rates you should expect. Overall, the company has good reviews, but there is an occasional complaint or two with the Better Business Bureau.

Zurich can be a good choice for contractors professional liability insurance if you work with international customers and clients. It will make clients from other countries more confident about using your services.

Who needs contractors professional liability insurance?

Contractors professional liability insurance are designed and sold to all types of contractors. However, the main customers of this policy are construction contractors and general contractors. You can learn more at the best construction insurance companies and the best business insurance companies for general contractors.

Other contractor types can also get this policy to protect themselves from lawsuits are: landscaping contractor, HVAC contractor, and plumbing contractors. Learn more at the best landscaping insurance, the best HVAC contractor insurance companies, and the best plumbing contractor insurance companies.

What does contractors professional liability insurance cover?

Commercial general liability insurance is used to protect you if your work causes bodily injury or property damage. However, that doesn’t cover you for financial losses a client might experience due to mistakes in your work. You could still be sued and end up spending a bundle.

With contractors professional liability insurance (CPL insurance), you are protected from lawsuits regarding the following:

  • Mistakes or omissions & errors (E&O) made at work
  • Failure to deliver or do what was promised
  • Incomplete or undelivered work
  • Alleged or actual negligence
  • Misrepresentation
  • Violation of fair dealing and good faith
  • Providing inaccurate advice

Contractors professional liability insurance also covers you if an error or mistake is made by a third-party vendor that you hire on your project. For example, an architect or engineer that you hire made a mistake in the design or the building of your construction project. When you are sued for this mistake or error, your construction general liability insurance policy will not cover this because it is a typical exclusion in your general liability insurance policy.

This insurance does not cover intentional acts, advertising and personal injury, bodily injury, property damage, and any liabilities covered by traditional commercial general liability insurance policies.

What is the difference between contractors professional liability insurance and builders’ risk insurance?

Contractors professional liability insurance and builders’ risk insurance policies have similar coverages and are mostly taken out by construction contractors. However, there are different nuances between the two policies.

First of all, contractors professional liability insurance is usually taken out by construction companies for projects that improve or enhance an existing structure. For new construction projects that require to build a new structure, construction companies have to take out a builders’ risk insurance policy. Learn more at construction general liability insurance: cost, coverage, and providers.

Secondly, contractors professional liability insurance policy is usually taken out by a contractor. On the other hand, a construction project owner usually take out a builders’ risk insurance policy.

Learn more at the best builders’ risk insurance companies.

How is contractors professional liability insurance different from contractors general liability insurance?

Contractors general liability insurance is a much more popular policy for contractors. All contractors should have this policy. It covers bodily injury, personal injury, property damage, and reputational and advertisement damages caused by the work of a contractor at his worksite.

Contractors professional liability insurance is a type of errors and omissions , or E&O, coverage. It protects a contractor when his clients sue him for financial losses that his clients believe are caused by his mistakes or errors in his work.

Contractors usually get these two coverages in one policy. Many insurance companies offer contractors professional liability coverage as an endorsement of a contractor general liability policy. It is a simple, convenient, and affordable way for contractors to have this coverage.

Learn more at the best general liability insurance for contractors.

How much does contractors professional liability insurance cost?

Contractors professional liability insurance cost varies depending on the type of project, the contractor type, project location, the project size, contractor experience, etc. Based on our research, the average cost of a stand-alone contractors professional liability policy is $150 a month. If it is added as an endorsement to a contractors general liability policy, it usually costs an average of $55 a month. Below is the cost comparison between biBERK and Hiscox. Hiscox policy is a lot more comprehensive and with higher coverage limits as well.

CarriersContractors professional liability insurance cost
Hiscox $327.16/month

Cost varies by providers. Make sure to shop around with a few companies to compare several quotes to choose the best and the cheapest one for you.

Last thoughts

As a contractor, mistakes and errors can happen, and you want to be sure you are protected when they occur. Even if you have an excellent reputation, a lawsuit could leave you spending tons of money – even if you don’t have it. Choosing a suitable form of contractors professional liability insurance will give you peace of mind.

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