General contractors execute projects using subcontractors, especially artisan contractors who are skilled tradespeople that provide specialized services, such as carpentry, plumbing, electrical work, painting, and landscaping. These subcontractors have a workmanship exposure that general liability or traditional professional liability policies do not cover.
CNA’s artisan contractors professional liability insurance policy is a type of insurance coverage specifically designed for these contractors and the services they provide. The policy helps protect against claims of negligence, errors, or omissions in the performance of their work, which could result in economic loss or damage to a client. Coverage applies to property damage to, loss of use, or recall of work performed by the insured artisan contractor.
Common examples of claims that an artisan contractors professional liability insurance policy may cover include:
Design errors
If an artisan contractor makes a mistake in the design or planning of a project that results in costs, losses, or other damages to its client, this policy may provide coverage. This coverage applies to the design services performed by or on behalf of the artisan contractor. Because an artisan contractor has vicarious liability for the negligence of any design professionals it hires to assist in providing services, the policy provides vicarious liability coverage so long as the artisan contractor subsequently performs the construction work.
Workmanship errors
If a court finds the work performed by an artisan contractor to be faulty or substandard, resulting in economic loss or damage to the client, this policy may provide coverage.
Professional advice
A contractor might ask an artisan contractor to make value engineering suggestions. By offering a professional opinion, the artisan contractor may be held legally liable for that advice. If the artisan contractor provides professional advice or recommendations to its client that leads to economic loss or damage to the client, the policy may provide coverage.
Legal defense costs
In the event of a professional liability claim against the artisan contractor, its professional liability insurance policy may cover the legal defense costs, including attorneys’ fees, court costs, and settlements or judgments separate from any costs incurred by the general contractor.
It is important for artisan contractors to have this type of insurance coverage to protect themselves and their businesses from potential financial risks associated with professional liability claims.