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Contractors Professional & Design/Build

Frequently Asked Questions


What is the intent of RA&MCO's Contractors Professional Liability?

The policy form is tailored for contractors and subcontractors who are involved in design/build projects and/or have a construction management exposure. The policy provides protection to the policyholder for allegations of professional negligence for services rendered by either their own professional staff, or their vicarious liability for services performed by subconsultants they have hired for design and other professional services.

General and umbrella liability insurers may exclude professional liability. While contractors with limited or incidental design exposures may have limited coverage for bodily injury and property damage claims, those performing design/build services should obtain separate professional liability insurance which applies to bodily injury, property damage and economic loss. Economic loss can arise in the absence of bodily injury or property damage and is not dependant on an "occurrence", an important coverage benefit provided by our Contractors Professional Liability Policy and absent in the coverage provided by the Commercial General Liability (CGL) policy.

What is Design/Build?

Design/Build is a form of project delivery in which the owner selects and contracts with a single entity, the design/builder, which assumes responsibility for the entire design, supervision and construction services to complete the project. The design/build firm may be:

Does RA&MCO's policy form include coverage for both Construction Management as "owner agent" and "at risk"?

The definition of Professional Services contemplates both Construction Management as "owner agent" and "at risk". For definitions of "agency" and "at risk" Construction Management please visit our Construction Managers FAQs.

Does the policy form cover the Policyholder's professional subconsultants?

The policy provides coverage for the policyholder's vicarious professional liability resulting from hiring professional subconsultants under written contract. This is important in case the design professional doesn't carry professional liability insurance, has inadequate limits, or goes out of business. However, the professional subconsultants themselves are not insured and do not have insured standing under the policy.

Does the policy form include Pollution Legal Liability?

The Contractors Professional Liability Policy form includes Coverage Part B: Pollution Legal Liability. This coverage part provides the policyholder with pollution legal liability coverage to the extent such claims arise from professional services.

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