Progress Isn't Perfect

A perfect storm of labor shortages, material volatility, economic uncertainty, and accelerating adoption of advanced technologies in the construction industry is reshaping project delivery and, with it, the liability profile of contractors. Errors & omissions (E&O) coverage—once viewed as optional, or necessary only for design professionals—is becoming an essential component of a contractor's risk-transfer program. For the insurance claims professional, this evolution presents new questions of coverage, allocation, and defense strategy that must be answered against a rapidly shifting factual and legal backdrop.

This article synthesizes recent developments in professional and technological exposures confronting contractors, highlights the significant legal issues that flow from those developments, and offers practical guidance for underwriting and claims handling. While the discussion is grounded in U.S. law, many observations have broader relevance given the global