Identify the service commitments
Read contracts for design responsibility, calculations, certifications, inspections and performance advice. A contractor may accept these duties even when its primary business is installation or maintenance. Explain who performs the service, their qualifications and whether subcontracted professionals are involved.
Review the insured services definition
Compare the proposed definition with each service offered and with contractual representations. Examine claims-made reporting, retroactive dates, exclusions and defense provisions. General liability should not be assumed to cover alleged financial loss from an incorrect design or technical recommendation.
Coordinate design and construction risks
A single allegation may involve both defective work and professional error. Review how the policies address that interface, including subcontracted design and contractual guarantees. Preserve design approvals, change orders and scope boundaries so the insurer can understand who was responsible for each decision.
Illustrative review scenario
A contractor’s proposal includes an assurance that a modified system will achieve a specified output. A later demand alleges the design failed to deliver that result. Review whether the obligation is a professional negligence allegation, a contractual guarantee or both. The distinction matters when comparing the insured services and exclusions with the demand, and it should be addressed before accepting similar commitments. Does a signed proposal promise an outcome beyond the professional standard of care? Ask counsel and the insurance reviewer to distinguish contractual guarantees from allegations the professional liability form is designed to address.