Professional Liability (E&O) for Design-Build Contractors

They are the same coverage referred to by different names. 'Professional liability' is the general category; 'errors and omissions' (E&O) is the common shorthand in the construction industry. Both refer to the insurance that covers claims arising from professional services — design, specification, coordination, and professional advice.

Yes. As the design-build prime contractor, you hold the design contract and assume professional responsibility for the design — even if you subcontract to a licensed AE firm. The owner's professional negligence claim comes to you first. Your E&O must respond even if you ultimately pass the claim to your design subcontractor's policy.

A retroactive date on a claims-made E&O policy is the earliest date from which professional acts are covered. If your retroactive date is today, only professional services performed after today are covered. When switching carriers, matching or backdating the retroactive date ensures prior work is covered — and avoiding a gap in prior-acts coverage is critical for long-duration construction projects.

Most design-build contracts require at least $1M per claim/$1M aggregate; large commercial, institutional, and public projects routinely require $2M–$5M. We size limits to match your largest active project and the contractual requirements of your typical owners, then layer umbrella above the E&O for catastrophic protection.

A deductible is the amount you pay out-of-pocket before your insurance coverage responds. A $10,000 E&O deductible means you absorb the first $10,000 of a covered claim; the policy pays the remainder up to the limit. Higher deductibles reduce premiums but increase your out-of-pocket exposure on claims.

A per-claim limit is the maximum the policy pays for any single claim. An aggregate limit is the maximum the policy pays across all claims during the policy period. A $1M/$2M E&O policy pays up to $1M per claim and up to $2M total across all claims in the policy year.

A.M. Best ratings reflect a carrier's financial strength and ability to pay claims. We place coverage with A-rated (Excellent) carriers so the coverage is there when a design defect suit, a professional negligence claim, or a pollution incident hits — not a carrier that becomes insolvent mid-claim.

Yes. Contractors Choice Agency is licensed in all 50 states and has specialty E&O markets for design-build contractors, construction managers, and architect-contractors anywhere in the country.

Typically 15 minutes on a call. Larger or more complex programs may take a day or two to place with the right specialty markets, but we move fast and set expectations up front.

Often yes. We have admitted and E&S markets for design-build firms with prior professional liability claims, difficult project types, or hard-to-place risk profiles. Bring us your situation and we'll find a market.

Usually yes. A coordinated program — E&O, CGL, workers' comp, commercial auto, umbrella — closes gaps between policies, especially the critical coordination between professional and general liability. It is typically cheaper and far easier to manage at claim time than separate policies from separate carriers.

An occurrence policy covers events that happen during the policy period, regardless of when the claim is made. A claims-made policy covers claims made during the policy period. Construction professional liability (E&O) is almost always claims-made. CGL is typically occurrence. Understanding the difference is critical for design-build contractors who need both.

Surplus lines carriers write risks that standard (admitted) carriers decline — unusual project types, firms with prior claims, or non-standard contract structures. E&S markets are critical for design-build contractors with complex risk profiles. We have E&S market access for the firms standard brokers can't place.

We issue certificates of insurance (ACORD 25 for liability) within hours of binding coverage. For design-build contracts that require project-specific endorsements, additional insured status, or primary/non-contributory language, we structure those requirements into the policy at binding.

Firm type and structure, annual revenue, project types and sizes, contract method (design-build, CM, GC+design sub), states where you operate, current coverage, coverage lines needed, and loss history. The more detail, the more accurate the quote — and the faster we can go to market.

With claims-made E&O, switching carriers requires a prior acts date (retroactive date) on the new policy to cover work done before the switch — or a tail endorsement on the old policy. We manage this transition so there are no gaps in your professional liability coverage.

Yes. If you operate across multiple jobsites, have satellite offices, or manage projects in different states, we build one coordinated program covering professional and general liability, builders risk, and workers' comp with no gaps between locations.

Yes. Public-sector design-build and CM projects often require higher limits, specific endorsements, and particular certificate language. We structure programs that satisfy public owner requirements — including government clients, school districts, and infrastructure owners — and maintain the specialty E&O markets that will write public-sector construction professionals.