Pennsylvania 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. Many contractors don’t even consider professional liability insurance, even while it is available at reasonable rates. Many project managers and/or owners believe it is covered under the contractors GL policy. This leads to complications at the time of a loss.
Contractors Insurance Concerns
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.
Worthington Insurance specializing in competitive auto, home, contractor and business insurance as well as insurance in Philadelphia, Yardley, Morrisville, Langhorne, Newtown, Bensalem, Levittown, Bucks County and surrounding areas in Pennsylvania and New Jersey