Yes, you can. This is called project-based liability insurance. It’s usually requested for large, one-time projects, like construction projects or complex IT implementation projects. Project-based liability insurance can be purchased across the major types of liability insurance, such as Public Liability Insurance and Professional Indemnity Insurance.
The primary scenario where project-based liability insurance is purchased is where a company already has an annual policy. However, the company is taking on a very large project where much higher coverage is required. Instead of increasing their annual policy’s coverage amount, which could potentially be rather costly, the company can instead purchase a project-based liability policy to cover this specific large project
Example: You have been awarded a $20 million construction contract. This contract is 5x larger than your typical contract size, so your client is demanding that you carry $5 million coverage for Public Liability Insurance, and $5 million coverage for Professional Indemnity Insurance.
You currently only have a $1 million Public Liability Insurance policy, as well as a $1 million Professional Indemnity policy. Instead of increasing both your annual policy’s coverage amounts, you could instead purchase project-based policies. This would probably save you a fair amount of money on your insurance premiums, while still allowing you to meet your client’s contractual requirements.
Note: When purchasing project-based liability policies, you must make sure that the duration of your project-based coverage is sufficiently long. This allows you to be protected against liability even after you’ve completed your work. Depending on what kind of project you’re performing, lawsuits may not occur until many years after you’ve completed your project.
Construction projects, for instance, are notorious for causing liability issues only several years after the building in question is completed. Don’t simply purchase a project-based liability policy for the duration of your project, and then forget to extend the duration of your coverage. If you do this, you could be left without any liability protection when the lawsuit actually hits your company!
Yes, you can. This is called project-based liability insurance. It’s usually requested for large, one-time projects, like construction projects or complex IT implementation projects. Project-based liability insurance can be purchased across the major types of liability insurance, such as Public Liability Insurance and Professional Indemnity Insurance.
The primary scenario where project-based liability insurance is purchased is where a company already has an annual policy. However, the company is taking on a very large project where much higher coverage is required. Instead of increasing their annual policy’s coverage amount, which could potentially be rather costly, the company can instead purchase a project-based liability policy to cover this specific large project
Example: You have been awarded a $20 million construction contract. This contract is 5x larger than your typical contract size, so your client is demanding that you carry $5 million coverage for Public Liability Insurance, and $5 million coverage for Professional Indemnity Insurance.
You currently only have a $1 million Public Liability Insurance policy, as well as a $1 million Professional Indemnity policy. Instead of increasing both your annual policy’s coverage amounts, you could instead purchase project-based policies. This would probably save you a fair amount of money on your insurance premiums, while still allowing you to meet your client’s contractual requirements.
Note: When purchasing project-based liability policies, you must make sure that the duration of your project-based coverage is sufficiently long. This allows you to be protected against liability even after you’ve completed your work. Depending on what kind of project you’re performing, lawsuits may not occur until many years after you’ve completed your project.
Construction projects, for instance, are notorious for causing liability issues only several years after the building in question is completed. Don’t simply purchase a project-based liability policy for the duration of your project, and then forget to extend the duration of your coverage. If you do this, you could be left without any liability protection when the lawsuit actually hits your company!