Construction can be a lucrative business and there are always customers. As the population grows, so too does the need for residential, commercial and industrial structures. Construction management firms have taken on a greater role over the last decade or so. They take charge of hiring architects and designers and overseeing projects for their clients.
Flaws in the design or building of a structure can cause damage to property or personal injury. In such a case, a lawsuit is sure to happen. Architects and designers are insured against being sued. Construction management insurance is also essential. As the hiring agency and overseer of a construction project, a management firm can also be held liable for damages caused in the design or building process. The damages awarded by a court can be high and severely hurt your company’s finances or even bankrupt it.
You can protect yourself and your company by carrying construction management insurance. A good policy will cover E&O as well as negligent acts. In any business, it’s vital to be prepared for the unexpected. It gives you peace of mind.
A well-run construction management firm can find itself busy and profitable with the many building projects that exist. Part of managing such a company well is having construction management insurance.