Professional Liability Insurance / E&O
Errors and omissions coverage for design professionals and other consultants, protecting against claims of negligence in the professional services they provided, distinct from general liability coverage, which covers bodily injury and property damage rather than a professional mistake in judgment.
Why it matters
A design error rarely causes bodily injury or property damage on its own, it causes cost and delay, which is exactly the kind of loss general liability coverage excludes and E&O coverage exists specifically to address.
On a real project
A structural engineer's calculation error requires costly redesign and rework well after construction has started, and the resulting claim is covered under the engineer's professional liability policy, not their general liability policy, since no bodily injury or property damage actually occurred.
Who this matters most to
A Construction Attorney identifies which policy, general liability or professional liability, actually applies to a given claim, since design-related claims and physical-damage claims usually belong under two entirely different policies.
Where this goes wrong
A claim arises from a design error, and the owner's attorney initially tries to pursue it under the designer's general liability policy, only to find that policy excludes professional negligence entirely. That claim belongs under the designer's separate E&O policy instead, and the misdirected initial claim costs time the owner didn't need to lose.