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.
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:
Learn more about what errors and omissions insurance covers.
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.
Here are some of the common risks construction contractors could be exposed to at work:
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.
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.
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:
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.
Choose your profession for more information or start an instant quote to get covered fast
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.