Skip to main content
1.800.383.8283
Library
  • Industries
    • Construction
    • Education
    • Healthcare
    • Manufacturing
    • Moving & Storage
    • Municipal
    • Non-profit
    • Welding Supply & Gas Dist.
  • Events
  • About
    • History
    • News
    • Office Locations
    • Team
    • Culture
    • Contact
    • Careers at Horton Group
  • Services
  • Online Bill Pay
1.800.383.8283
Client Login
Search

Choose a login.

  • Client Logins
    • Business Insurance
    • Employee Benefits
    • Personal Insurance
  • Library
    • Benefits
    • Commercial
    • Personal
    • Safety
    • Thought Leadership
    • Wellness
Home
1.800.383.8283
  • Business Insurance
    • Management Liability Insurance Practice
  • Employee Benefits
  • Consulting Services
  • Personal Insurance
    • Has Your Homeowners Insurance Policy Canceled? | Get a Replacement Policy Today
  • Industries
    • Construction
    • Education
    • Healthcare
    • Manufacturing
    • Moving & Storage
    • Municipal
    • Non-profit
    • Welding Supply & Gas Dist.
  • Events
  • About
    • History
    • News
    • Office Locations
    • Team
    • Culture
    • Contact
    • Careers at Horton Group
  • Services
  • Online Bill Pay
  • Library
    • Benefits
    • Commercial
    • Personal
    • Safety
    • Thought Leadership
    • Wellness
      • Population Health Management
  • Client Logins
    • Business Insurance
    • Employee Benefits
    • Personal Insurance
Close Menu
  • Property & Casualty
  • Mergers & Acquisitions
  • Risk Transfer
  • Professional Liability
  • Claims
  • Cyber Liability Insurance
  • Automobile Liability
  • Captives & Alternative Risk
  • International
  • Surety Bond Services
  • Workers Compensation
  • Management Liability
  • ACA/DOL Compliance
  • Core & Voluntary Benefits
  • Executive Benefits
  • FSA / HSA
  • Group Medical
  • International Benefits
  • Private Exchange Technology
  • Retirement Services
  • Stop Loss
  • ThinkHR
  • Zenefits
  • Home Umbrella
  • Life & Health
  • Private Client
  • Speciality Recreation
  • Safety & Loss Control
  • TrustLayer
  • Wellness
‹ Back to Resources

Understanding the Difference between Professional Liability and Contractor’s Errors & Omissions

September 17, 2019 at 4:00 PM
Share

By: Matt Meyer, Senior Sales Executive / Risk Advisory Solutions, Construction Practice

Defining the purpose of both errors & omissions and professional liability coverage in terms of how they apply to contractors is essential to understanding their differences!

First, professional liability:  This coverage is meant for general, design-build contractors and construction managers who have design professionals on staff or who subcontract design services to others.  

And second, contractor’s E&O:  This is designed for artisan and specialty contractors seeking coverage for errors and omissions in their work that cause damage to, loss of use or recall of their work, installed products, and/or impaired property.  

These two terms frequently used interchangeably, but the policies do have some distinct differences.  

Some examples of the key differences:

  1. The definition of a “wrongful act,” which is a key term and will determine how the policy will respond.
  2. How the policy may or may not respond to faulty work. 
  3. If there was an error, would the policy allow for you to correct the work before it damages a third party?  That is known as rectification coverage.  

Whether you’re a design-build firm or a trade contractor, understanding the differences in these coverages is crucial!  If you get it wrong, it can cost hundreds of thousands of dollars if not more.  

Have you ever considered developing a process to identify how to drive down costs, workload, and risk? Do you know that all these aspects of your business (costs, workload, and risk) are intertwined by your understanding the differences between coverages, such as contractor’s E&O and Professional Liability?  

If you would like to explore this topic further, please don’t hesitate to contact a Horton representative today.

 

 


Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your needs.

Error & Omissions vs. Professional Liability for Contractors - Meyer

Video
Whether you’re a Design/Build firm or a Trade Contractor, knowing the differences between Errors & Omissions versus Professional Liability coverage can be very important. (2:18)

Matt Meyer

Vice President, Risk Advisory Solutions
Email / Bio / (262) 347-2659

Matt Meyer is a Vice President at The Horton Group. Matt’s extensive knowledge of insurance and risk management helps him meet the diverse needs of Horton’s clients. His background includes working in Horton’s Construction and Real Estate practice groups in providing Horton clients with comprehensive, cost-effective and innovative solutions to meet their most complex, risk-related challenges and opportunities.


Footer: Call-To-Action

Contact the Horton Group today to discuss how you can achieve a higher level of performance.

Contact Us

Find Us

Horton Group
Corporate Headquarters / Orland Park, IL
(800) 383-8283

Bourbonnais, IL
Chicago, IL
Edina, MN
Estero, FL
Noblesville, IN
South Bend, IN
Sturgis, MI
Waukesha, WI 

  • About
  • News
  • Our Team
  • Career
  • Office Locations
  • Contact
  • Forms & Applications
  • Assurex Global
  • Awards
  • Privacy Policy
  • Transparency in Coverage

Join Our Mailing List!

Sign up to receive email notifications for upcoming events and important industry news.

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
  • Instagram

Copyright Menu

  • Privacy Policy
  • Sitemap
  • Terms & Conditions
  • Ethics Reporting System
  • Compensation Disclosure
Copyright © 2022 The Horton Group