Most contractors carry general liability insurance but it doesn’t cover everything. For general contractors, one of the most overlooked but essential coverages is Errors & Omissions (E&O) insurance. Without it, you may be left exposed to claims that aren’t covered under your standard policies.
What Is E&O Insurance?
E&O insurance is designed to cover claims related to professional errors, service failures, or oversights, especially those that result in financial harm but not necessarily physical damage or injury. While general liability protects against bodily injury and property damage, it often excludes coverage for your own work, products, or project delays caused by mistakes.
That’s a big deal in construction, where one small error in scheduling, documentation, or subcontractor management can spiral into significant costs.
Why E&O Matters for Contractors
General contractors are particularly vulnerable to:
- Failing to deliver promised services
- Providing incomplete or incorrect work
- Unintentional negligence or oversight
- Damage to client property due to service errors
Even minor disputes can escalate into lawsuits that drain time, money, and resources. Courts often side against contractors in these cases, especially if there’s no clear protection in place.
With an E&O policy, your business can be protected from these claims, covering expenses like legal defense, court costs, and settlements.
Don’t Forget Subcontractors
One important note, E&O coverage often doesn’t extend to subcontractors. If you work with independent crews, make sure they carry their own policies to avoid uncovered liability flowing back to your business.
Secure the Right Policy
Every contractor’s business is different, and so are their risks. An E&O policy tailored to your operations helps ensure you’re not caught off guard when something goes wrong.
At McHugh Insurance Group, we work with general contractors to build comprehensive risk programs, including E&O coverage to keep you protected. Reach out today to discuss the right fit for your business.