In the complex world of construction, even the most skilled professionals can encounter unexpected challenges. Whether you’re an architect, engineer, or specification writer, the risks associated with errors or omissions in your work can be significant—and expensive. The North American Industry Classification System (NAICS) reports that there are around 1.3 million U.S. contractors with annual revenues of less than $5 million. Just one liability claim can put many of these contractors out of business. That’s where errors and omissions or construction professional liability insurance (CPLI) comes in.
What Is Construction Professional Liability Insurance?
Construction professional liability insurance is a type of coverage designed specifically to protect professionals who provide design, consultation, and specification services in the construction industry. Unlike general liability insurance, which covers bodily injury or property damage, CPLI covers economic losses resulting from professional services—think design flaws, incorrect specifications, or project delays caused by professional oversight.
This insurance isn’t just for large firms or high-profile projects. Any professional involved in design and documentation has exposure to liability claims, especially as construction projects grow more complex and litigious. It’s projected that this type of insurance will grow by 3.90% by 2031 as more companies realize the importance of protecting their businesses.
Why Do You Need It?
Even with years of experience and meticulous attention to detail, no one is immune to mistakes. CPLI provides essential protection in situations like these:
- An architect’s miscalculation leads to structural inefficiencies that delay the project.
- A specification writer includes outdated compliance data, resulting in costly rework.
- An engineer’s design conflict requires emergency redesign during construction.
Without this coverage, defending yourself in a lawsuit—and covering any resulting damages—could cost hundreds of thousands of dollars. CPLI helps ensure that a single misstep doesn’t become a financially ruinous event.
It also reinforces credibility. Many clients, especially in government or large-scale development, require evidence of professional liability insurance as a contractual prerequisite. Carrying it signals that you’re serious about risk management, professionalism, and accountability.
What Risks Does It Help Mitigate?
Construction projects are rife with moving parts—literally and figuratively. CPLI is crafted to help mitigate a range of professional risks, including:
- Design Errors: Flaws in architectural, structural, or MEP design work
- Specification Mistakes: Errors in selecting or describing materials, systems, or methods
- Code Compliance Issues: Failure to meet building codes, zoning laws, or safety regulations
- Schedule Delays Caused by Professional Oversight: When professional errors stall construction timelines
- Budget Overruns Due to Design Missteps: Cost increases directly linked to incorrect plans or omissions
Because these issues often result in financial loss without physical damage, they fall outside the scope of general liability insurance. CPLI fills that gap.
See how NBS can help you minimize spec writing risks.
What’s the Unique Advantage for NBS Chorus Users?
Here’s where things get exciting: users of NBS Chorus receive a 10% discount on the Waypoint Tailored Insurance Program for construction professionals. Why? Because using specification software like NBS Chorus is considered a smart, proactive way to reduce the risk of specification-related claims. When spec writers use tools that promote accuracy, compliance, and collaboration, insurers recognize that as a lower risk profile. As ENR reports, construction insurance premiums rose 4.6% in the first quarter of 2024, so the need for a discount is beneficial for many companies.
This exclusive partnership between a professional liability insurer and a specification software company is unmatched in the industry. It’s a refreshing example of how digital tools and insurance can intersect to genuinely benefit professionals—by not only reducing errors but also lowering insurance costs.
How Does NBS by Hubexo Support Construction Professionals?
Whether you’re an architect, spec writer, or product manufacturer, NBS by Hubexo provides the tools you need to stay ahead in a changing industry.
- For Architects and Specification Writers: NBS Chorus offers a collaborative platform that allows teams to write, edit, and update building specifications in the cloud. It’s user-friendly, always up-to-date with the latest standards, and designed to minimize duplication, errors, and inconsistencies across documentation.
- For Building Product Manufacturers: NBS Source allows manufacturers to get their products specified by making critical data—like certifications, digital objects, and performance specs—easily discoverable and aligned with industry standards.
In short, NBS helps reduce risk and boost efficiency, allowing professionals to focus on what they do best: creating outstanding built environments.
It’s time to make risk management work for you.
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