March 21, 2014

The policy problem that hurts construction managers too often…and the solution

There’s a Construction Manager (CM) story that’s as common as it is frustrating: A CM purchases a professional liability policy, however the policy is based on Architects and Engineers (A&E) or General Contractor (GC) coverages. This would be perfectly fine if a CM had exactly the same needs and challenges as an architect, engineer or general contractor, but all too often, CMs learn the hard way how different their professional needs are from the insurance policy they purchased – this situation could lead to insufficient coverage for crucial situations.

This is one of those problems that ProSight Specialty Insurance (ProSight) particularly enjoys solving. By teaming up with the Construction Management Association of America (CMAA), we’ve designed a policy to help meet the specific needs of the CM, taking into account their day-to-day operations and other considerations.

CMs must be able to focus on the details of the job at hand. That’s one reason our joint Professional Liability and General Liability coverage is so important – we help them forget about the headache of managing multiple policies. Additionally, our policy provides CM specific coverage enhancements, one of which could cover expenses related to a claim even before it has been filed. And ProSight’s claims handling sets an industry standard for speed and service.

Two exceptional features showcase the importance of having a policy designed by experts who understand construction management and the way that claims and legal hearings impact construction managers’ jobs and livelihood. Our Disciplinary Proceedings Expense Reimbursement coverage enhancement can help offset as much as $500 a day, with a maximum of $10,000 per policy period, for travel, lost pay, and other losses incurred when CMs have to attend disciplinary hearings. In addition, our Subpoena Expense reimbursement enhancement is intended to help with the toll that responding to a subpoena can take on time, money, and the normal demands of the job by offering up to a $25,000 sublimit for reasonable claim expenses. These two enhancements allow CMs to focus on what’s most important – the quality and safety of day-to-day operations.

ProSight is proud to work with Quaker Special Risk (QSR) to offer this customized program to CMAA members. For half a century QSR has provided insurance to the construction industry, and knows as well as ProSight does just what Construction Managers need to do their jobs – and how an A&E or GC policy isn’t the answer for CM’s.