Scenario 1:
A subcontractor goes bankrupt mid-project, leaving a contractor with incomplete work and missing materials.
RELATED STAT:
- According to a 2024 survey by the Associated General Contractors of America, 70% of contractors reported an increase in subcontractor defaults, with half experiencing project delays or cancellations as a result.
SOLUTION:
- Professional Liability Insurance, such as Errors & Omissions (E&O) coverage, addresses gaps left by Commercial General Liability, covering design errors or omissions in design-build projects. Learn more
Scenario 2:
A CT lab was built without required lead shielding, allegedly exposing staff at a neighboring clinic to dangerous radiation for months through a shared wall, a new lawsuit claims.
RELATED STAT:
- Lawsuit-related expenses could total millions of dollars, depending on the number of individuals impacted and the extent of their injuries.
SOLUTION:
- Errors & Omissions (E&O) Insurance can help professionals respond to litigation, providing coverage for legal defense, settlements, and more. Commercial General Liability (CGL) Insurance and Environmental Pollution Liability (EPL) Insurance policies may also respond. Learn more
Scenario 3:
Months after a contractor completes a commercial building project, the property owner discovers water intrusion and files a construction defect lawsuit against the contractor.
RELATED STATS:
- Costs may include legal defense, remediation, and reconstruction, potentially totaling millions of dollars.
SOLUTION:
- Expenses related to alleged construction errors could be covered by Errors & Omissions Insurance. Learn more
Scenario 4:
A company sues its insurance broker over alleged negligence, claiming the agent’s failure to secure Product Recall Insurance for the company cost them $4.5 million.
RELATED STATS:
- The insurance agent could be held liable for the company’s $4.5 million recall loss, as well as legal costs and other expenses.
- The average food recall in the U.S. has been estimated to cost $10 million in direct costs alone.
SOLUTION:
- Insurance Agents Errors & Omissions (E&O) Insurance can cover legal defense, indemnity payments, and more. Learn more
Scenario 5:
An iconic farmhouse featured in the popular horror film is scheduled for a public auction.
RELATED STATS:
- Professionals involved in the sale of high-profile properties could face costly claims and lawsuits over allegations such as misrepresentation or failure to disclose.
- Legal defense, damages, and regulatory penalties could total tens of thousands of dollars or more.
SOLUTION:
- Professional Liability Insurance can help auctioneers, title agents, and other real estate professionals pay for lawsuit-related expenses. Learn more
Scenario 6:
A consulting firm delivered a government-commissioned report containing apparent AI-generated mistakes, including a fabricated quote and references to research that did not exist.
RELATED STATS:
- Shareholder actions, reputational harm, and other losses can follow when a company or its vendors misuse AI.
- According to a McKinsey survey, about 88% of organizations are using AI in at least one business function.
SOLUTION:
- Errors & Omissions (E&O) Insurance and Directors & Officers (D&O) Insurance can help organizations manage liability from mistakes tied to AI use. Media Liability Insurance and Cyber & Privacy Liability Insurance may also be needed. Learn more
