What is Contractor Insurance?
Contractor Insurance provides coverage specific to the risks faced by contractors. AC&D Insurance represents over 50 insurance companies that offer coverage packages specific to the construction industry and has qualified brokers that will work with you to ensure you get the coverage you need.
Finding the right insurance requires the assistance of a broker with knowledge and experience in the construction industry.
At AC&D Insurance we partner each business with a professional broker that has experience insuring contractors in each specific trade and industry.
The limits and types of insurance required for each type of contractor is different and we will work with you to find the right solution.
Contractor General Liability
Commercial General Liability Insurance (CGL) Insurance, also known as Comprehensive General Liability and Business Liability Insurance, is designed to financially protect a business from bodily injury and property damage losses to third parties that arise from the negligence or alleged negligence of a business or its employees. Even if you run your business perfectly and never make a mistake you may be included in a lawsuit that alleges negligence. In addition to coverage for damages awarded, a CGL provides your business with coverage for legal defense costs.
Contractor General Liability – Primary Coverage Considerations
- Bodily Injury & Property Damage Liability: Covers those sums that the Insured becomes legally obligated to pay as compensatory damages because of bodily injury or property damage to property of others.
- Broad Form Completed Operations: The Broad Form Completed Operations Endorsement narrows the exclusion of the CGL to exclude only that part of the insured’s work that is defective. Without this extension all of an insured’s work is excluded from coverage by the CGL . With this extension, resultant damage to the rest of the insured’s work that is not defective will be covered by the CGL
Contractor General Liability – Additional Coverage Considerations
- High Hazard Operations: Contractors that are involved in high hazard operations require policies that do not have the standard exclusions found in a commercial general liability policy (CGL). Operations that require additional underwriting consideration include: blasting, shoring & underpinning, pile driving, environmental remediation & abatement, major excavation & foundation works, construction of bridges, and work on dams and tunnels.
- Forest Fire Fighting Expense: Covers all sums the insured becomes legally obligated to pay for resulting from the costs of firefighting expenses. This coverage is usually added to policies of insureds that have an exposure to causing a forest fire.
- Pollution Liability: Covers bodily injury and or property damage to a 3rd party by contamination with pollutants which is typically excluded in a CGL policy. Limited Pollution coverage, that covers sudden and accidental incidents, can usually be added by endorsement to a CGL. Broader Pollution coverage must typically be obtained separately with an Environmental Impairment Liability policy.
- Wrap-Up Liability: This policy is obtained for a construction project to provide a single liability policy for the owners, contractors, professional consultants, and sub-contractors. This insurance looks after a number of problems identified by both owners and contractors such as disparate limits, differing conditions, uninsured parties, expired/cancelled policies, multiple deductibles, lengthy claims settlements, unsatisfactory allocation of fault, and additional administrative workload.
Contractor Property Insurance – Primary Coverage Considerations
- Tool Floater: Covers tools at any location, whether at the insureds premises, inside a vehicle, or at a job site. Often this coverage has a maximum value for any one tool, such as $500 – $1000 and tools of a higher value need to be scheduled.
- Equipment Floater: Covers contractor’s equipment anywhere in North America – at a storage location, in transit, at a job site, etc. Excludes marine exposures other than on a passenger & vehicle ferry service. Each item can be scheduled and insured for a value specified or insured on a blanket basis with a maximum limit per item and a maximum limit for all items.
- Equipment rented or leased from others: Covers equipment rented, leased, or borrowed from others on a short-term basis. Typically this coverage is added on a blanket basis with a maximum limit per item and a maximum limit for all items rented, leased, or borrowed.
- Installation Floater: Covers against direct physical loss to materials and supplies (including machinery and equipment) which are owned by the contractor or for which they are responsible and which are destined to become part of a structure. Coverage applies on-site and while in-transit. Coverage begins from the initial point of shipment when the materials leave the factory, store or warehouse and are in transit to the job site. Coverage continues once the materials arrive at the job site, are awaiting installation, during the installation period and during the period of testing. Coverage ceases once materials are installed and are a physical part of the building.
- Builder’s Risk Insurance: Also known as Course of Construction insurance, a Builder’s Risk policy covers buildings during construction. The coverage should begin at the start of the project, the amount of insurance should be the anticipated completed cost, and the policy term should be the estimated time period required to complete the project. The policy covers all building materials and fixtures that will be part of the completed building. The policy can be extended, with a sub-limit, to cover property in transit from a supplier to the job site.
Miscellaneous Contractor Insurance considerations
- Difference in Deductible Insurance
- Trade Specific Public Bonds
- Contractor E&O Insurance
Why should I choose AC&D for my Contractor Insurance needs?
AC&D has the history and track record insuring contractors in every field and trade. Our experience and market strength ensures we can get you the best policy for the best price.
How much does Contractor Insurance cost?
The cost of contractor Insurance differs based on the scope of your operation and limits of coverage selected. A basic liability policy for a sub-contractor can start as low as $600. Contact Us today to arrange a no-obligation review of your Contractor Insurance needs from one of our expert brokers or Request a Quote.