What is a primary benefit of having professional liability insurance for a CM?

Having professional liability insurance is crucial for a Construction Manager because it specifically offers liability coverage related to negligence in professional services. This type of insurance protects the CM against claims that may arise from errors, omissions, or failures in the performance of their professional duties.

In the construction industry, where various factors can lead to disputes, such as design flaws, miscommunication, or project management errors, this insurance ensures that the CM has financial support to cover legal defense costs and any settlements or judgments awarded. This provides a significant level of security, enabling the CM to operate with a greater degree of confidence knowing they have protection against potential legal issues stemming from their professional actions.

Other types of coverage, such as protection against injury claims, property damage, or financial backing for project overruns, do not address the unique aspects of liability that arise from a CM's professional conduct, which is why professional liability insurance is particularly important. It is a safeguard for CMs to maintain their professional integrity and financial stability in the event of unexpected challenges.