The Best E&O Insurance for Construction Professionals

Insurance Business America has engaged the country’s top brokers in one-on-one interviews and surveys to determine the leading Errors and Omissions (E&O) for Construction products. IBA’s inaugural Five-Star Excellence Award in E&O for Construction celebrates companies not only with outstanding product offerings, but also first-class broker support and industry knowledge. The Five-Star Excellence Award allows brokers to understand the partners their peers have chosen to present to clients – giving you an upper hand when selecting insurers to work with.


Determining America’s top insurance products takes a keen understanding of the market offerings – that is why IBA has enlisted the help of thousands of brokers to determine the 2021 Product Awards. Read more about how we determined our winners here.


5-Star Excellence Awards

  • Argo
  • CFC Underwriting
  • Chubb
  • Hiscox

What is contractors’ errors & omissions (E&O) insurance?

Several insurance companies provide liability coverage for trade contractors, including carpenters, electricians, painters, plumbers, and heating and air conditioning technicians, for damages resulting from unintentional faulty workmanship. Often called contractors’ errors and omissions (E&O) liability insurance, this typically covers the expenses incurred to repair or redo faulty work and any legal costs resulting from lawsuits, settlements, and punitive damages.


Contractors’ E&O insurance is different from designers’ liability insurance, which is targeted at professionals involved in the design and construction of a building such as architects, engineers, and construction managers, and covers mainly errors in designing and advising.


Additionally, contractors’ E&O policies are not intended to duplicate commercial general liability (CGL) insurance, which offers coverage for claims stemming from damage or injury caused by a business’ products or operations, or those that occurred within its premises. 


What is covered by E&O for contractors?

Trade contractors are an integral part of every construction project. These include carpenters, electricians, painters, plumbers, and heating and air conditioning technicians. These trained professionals are valued for their various specializations, which also give way to a unique set of exposure.


E&O insurance for contractors typically covers the expenses incurred to repair or redo their faulty work, and any legal costs incurred from lawsuits, settlements, and damages resulting from these errors.


How much does E&O insurance for construction professionals cost?

Policy prices for errors and omissions insurance depend on several factors, including the type of construction work, industry, number of contractors, years of operation, previously paid claims, and coverage limits. For many small businesses, annual premiums range between $400 and $1,000. The cost is bigger for larger construction companies. Contractors E&O coverage has a deductible and limit per job, and an annual aggregate limit, which all vary in costs.


What are excluded from contractor’s E&O insurance?

E&O policies are designed to cover the gaps left by commercial general liability (CGL) insurance, meaning errors and omissions coverage does not duplicate the protection CGL already provides such as personal injury, property damage, and advertising errors. E&O insurance also applies to damages that occur once the work is completed. It does not cover any construction work in progress.


Additionally, contractors’ E&O insurance does not cover intentional acts of negligence or dishonesty that lead to harmful results, including knowingly using cheap materials to save costs.


How to choose the right construction E&O liability insurance

E&O liability insurance varies in coverage, key features, and prices depending on the type of construction work your company is involved in. To find the right errors and omission policies that suit your construction business, it is best to talk to an experienced broker from a reputable insurance provider.


This year in E&O insurance...


Hanover study reveals golden opportunity for insurance agents in E&O

A recent survey found that while nearly half of professional service providers face considerable professional liability exposure, a fifth of respondents say that they do not have any professional liability insurance at all.


Professional liability risks pile up during the pandemic

As companies return their employees to work across the US, and then have to bring them home again as reopening plans in certain states shift in the face of the coronavirus, they face a litany of professional liability challenges.



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