Contractors’ Errors and Omissions Insurance for Construction

You can save up to 25% in discounts.*

How does contractors’ E&O insurance protect construction professionals?

Contractors’ errors and omissions insurance, also known as contractors’ E&O insurance, provides protection for any mistakes in your construction work. This type of professional liability insurance also covers business disagreements with clients.

For example, a client could accuse a mason, welder, plumber or roofer of faulty work. E&O insurance can help you defend yourself against those types of accusations. If you did make a mistake in your work, this insurance would help cover the client’s financial damages.

Whether or not you’re at fault, construction E&O insurance makes sure you get the financial support you need if a client is unhappy with your work. Bundling contractors’ errors and omissions insurance coverage with your general liability insurance is recommended for comprehensive protection and may help you save money on your insurance costs.

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What does contractors’ E&O insurance cover for construction contractors?

Construction errors and omissions insurance helps protect contractors from potential business disputes. If a client claims you failed to deliver the promised services or that your work was subpar, your E&O construction insurance will help cover the costs to defend your business or fix the problem.

Errors and omissions insurance for independent contractors in construction can help cover a variety of costs, such as:

  • Professional negligence (actual or alleged)
  • Legal defense costs
  • Legal judgments

Learn more about what errors and omissions insurance covers.

Why do construction professionals need contractors’ Errors and Omissions insurance?

Property owners and developers pour a lot of money into construction projects. When the results don’t meet their expectations, they’re likely to hold the construction contractor responsible. No matter if their claims are accurate or not, a client may ask you to pay for any losses if they believe that you made a mistake in your work or failed to deliver the agreed-upon services.

It’s important for construction contractors to be prepared for the possibility of the financial costs of defending yourself or fixing any mistakes. Rather than paying hundreds or thousands of dollars out of pocket, having construction insurance coverage can help you pay for any expenses related to client disputes.

In some states, you may be required to carry contractors’ E&O insurance in order to obtain construction licenses or permits. In addition, most clients will require you to have this insurance coverage, especially for high-value construction projects.

What are some common risks faced by construction contractors?

Here are some of the common risks construction contractors could be exposed to at work:

Business mistakes

If you make a mistake in your work that causes someone to lose money, you’ll need to cover the costs to make things right.

For example, you might accidentally damage the flooring in a client’s home while installing new cabinets or putting up drywall. Contractors’ errors and omissions insurance would help cover the costs of repairs or replacements.

Accusations of professional negligence

Construction clients rely on the expertise and professionalism of their contractor. If they feel you’ve neglected your responsibilities on the job, they may sue you for financial damages.

If a client claims that you used defective materials in your work, for example, they might file a lawsuit against you. Your E&O insurance can help with legal costs so you can defend yourself.

How much does contractor Errors and Omissions insurance for construction professionals cost?

NEXT offers contractors’ errors and omissions insurance coverage that is customized to the needs of each construction professional.

This type of professional liability insurance costs $26 to $45 per month for 40% of NEXT customers. In the construction industry, independent contractor E&O insurance costs largely depend on the type of work that you do. For example, the median monthly premium for a carpenter is just $21, but for a handyman, it’s $60.**

A number of factors affect how much you’ll pay each month for this insurance, including:

  • The state where you work
  • How many employees you have
  • Your claims history
  • How high you set your limit
  • Your work experience

NEXT offers tailored business insurance for construction professionals

NEXT offers convenient and affordable contractor errors and omissions insurance for pros in the construction industry. It only takes a few minutes to get the insurance coverage you need online.

Simply use your mobile device or computer to complete a contractors’ E&O insurance application, compare your insurance options, purchase coverage and get a certificate of insurance.

Get an instant quote online today.

More about Errors and Omissions and Construction insurance

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Appliance Technician, Building Sign Installation, Carpenter, Concrete Contractor, Debris Removal, Drywall Contractor, Electrician, Excavation Contractor, General Contractor, Glazier, Handyman, HVAC Contractor, Home Renovation Contractor, Mason, Insulation Contractor, Painters, Paving and Asphalt Contractor, Plastering and Stucco Work, Plumber, Roofing, Siding Installation Contractor, Welding, Tile, Stone and Flooring Installer, Waterproofing

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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
**The cost data presented here are based on NEXT active customers data obtained over the previous 12 months. The cost data are based on contractors’ E&O insurance’s median monthly price for construction businesses. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.