You may be visionary, talented and skilled. You may know what makes buildings stand solid and have an understanding of contracts and contractors. You may be an excellent negotiator and planner. But getting into the construction business brings with it one risk you need to be clear-eyed about from the very outset.
Professional Liability Risk
As you start out, you’ll likely learn how difficult it is to get the business afloat. Finding the right partners, the right market niche, the right designs and specifications, keeping ahead of the competition — all of these need entrepreneurial skill and vision. It takes a special kind of tenacity to jump through all these hoops, and start to get projects.
Professional liability once the work starts coming, however, takes your business, potentially, into even more choppy waters. The risk of liability can sink the whole ship.
Getting the Contract Wording Right to Manage Risk
One of your best possible risk mitigation tools is the content of any written contract you put your signature to. Its wording can ensure your exposure is minimized, specifically by ensuring any liability is distributed equitably among the other stakeholders — general contractor, sub-contractors, suppliers, design professionals, and even the building owner — should issues arise on a project.
In-depth knowledge and understanding of insurance coverage, especially, can minimize your risk, so that you are never in a position where liabilities on a project become difficult, or even impossible to insure. The worst-case scenario is when you, the contractor, become the de facto “insurer”, because of the way liabilities were distributed within a contract.
Qualified Legal Counsel Can Help With Your Professional Liability Risk
The best way to avoid a really bad situation, and minimize your professional liability risk, is to seek out a qualified construction law firm, right out of the gate. Here at Stryker Slev, we’ll use our deep understanding of contract law and complex insurance programs to ensure the proper wording and clauses are included in any agreement. You and your company will be protected. Contact us to schedule a consultation.