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Contractors Insurance Update

If you are a contractor you may have some coverage issues that you need to review. Many contractors’ insurance policies have limitations or exclusions that could cause un-insured losses.

Contractors Insurance Concerns

Contractual Liability

The ISO Commercial General Liability Coverage form excludes damages or loss for which the contractor is obligated to pay by reason of having assumed liability under a contract.  However, some coverage is given back in this exclusion for an “insured contract”.  We can add back the coverage through endorsements which changes the definition of an insured contract.

Designated Work or Designated Ongoing Operations Exclusion

Some insurance companies may offer a contractors policy, but exclude specific type of work. For example, a general contractor may be primarily involved in framing but may on occasion perform charitable work. Some insurers may exclude the charity work. Some carriers are willing to include incidental classes on the policy on an “if any” basis. 

Independent Contractors Exclusion

As a contractor do you sub out any work? You do not want this exclusion on your policy. The exclusion removes coverage for claims arising from the acts of independent contractors.