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Contractors Professional Liability – Protecting You from Unforced Errors

E&O, CGL, HVAC, CPL, EPL, NFL… okay, so there are a lot of contractors insurance acronyms (and yes the NFL and EPL are not insurance policies). There are probably (admittedly) too many acronyms which can result in another obstacle to your understanding of what policies you need. To break down those barriers and make it a little easier for you to identify which policies you need, we will begin to define the differences in coverage between a commercial general liability policy and a contractors professional liability policy.

Contractors Professional Liability vs. Commercial General Liability Insurance

A commercial general liability (CGL) policy will cover you in the event of bodily injury and will also protect you from property damage liability claims.  But, what happens when you aren’t injured and your property isn’t damaged but somebody still files a claim against you.  The following situations are the most common claims we see that lie outside the protection of a CGL policy.

  • A contractor hires a mechanical engineer to design the HVAC system for a new building. Sounds great! But, the system was designed improperly and now the top three floors of the building feel like a sauna. Unfortunately, the engineer had no contractors professional liability coverage, and now the project owner has to look to the contractor for the cost of replacing the system.
  • A contractor was hired to design and build a manufacturing facility for a steel fabricator. After construction was completed, it was discovered that the original design was inadequate and couldn’t support the weight of the machinery to be used by the customer (resulting in a fairly lethal workplace).  Therefore the customer looks to the contractor for the additional $500,000 needed to correct the problem.

Commercial General Liability Insurance Exceptions – When Injury and Property Damage Isn’t Enough

Sometimes, the claim against the contractor does involve bodily injury or property damage, but the claim isn’t covered because a professional liability exclusion has been added to the contractor’s CGL policy.

For example:

  • A HVAC contractor designs and installs a ventilation system for a new building. Unfortunately, the design was faulty and resulted in mold growth in the system, causing occupants of the building to become sick.
  • A homebuilder designs and builds a new subdivision. Residents of neighboring properties file claims against the builder after they suffer water damage.  They claim that the water drainage system for the subdivision was designed improperly causing runoff onto their properties.

The solution to the contractor’s coverage gap in either instance is contractors professional liability coverage, sometimes referred to as contractor’s errors and omissions coverage. So, if you end up facing claims that arise from errors and omissions involving your professional services then you may want to consider acquiring contractors professional liability insurance.

Free General Liability Insurance Quote

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The Definition of Disability Insurance – Everything You Need to Know

Working as a contractor is not the safest occupation (but it can be one of the most rewarding). There are very few jobs left where someone can work with their hands and see the fruits of their labor. As liberating as that may seem we also understand the dangers associated with being a contractor (the guy working in a cubicle probably isn’t facing the same level of risk as one of your co-workers who spends all day working hand in hand with his table saw). And sometimes that danger can change the lives of those you know (perhaps even your own life). No one wants to see a contractor go down, but it does happen from time to time, and when it does you will want to be prepared. Contractors disability insurance will protect you when the worst strikes (and when no other policy will cover your expenses). Listed below is the definition of disability insurance as well as who needs it and why.

The Definition of Disability Insurance and How it Could Save You

Disability insurance is designed to protect those who work for you (and you) from a disease or injury that prevents you from returning to work. While most people envision these traumatic events to be sudden, most disability claims happen as a result of something that develops over time (such as cancer or heart disease). With disability insurance your injured employee will have up to 80 percent of their salary covered until they can return to work (or until they reach retirement age). You do not have to be permanently disabled to make a claim, although there is disability insurance for long term disability as well.

Long term disability insurance is a useful policy to have in high-risk industries (because a lot can go wrong) but it is also one of the most expensive policies. With minimum coverage starting at around $2 million dollars this policy may be out of the price range of some of our clients. But, then again, not everyone needs long term disability insurance. Different contractors will have different needs and it is important that providers are flexible enough to provide the coverage that that client needs (no more and no less).

If you have any further questions about the definition of disability insurance or disability insurance in general please feel free to give us a call at 1-800-649-9094. We look forward to hearing from you!

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Contractors Liability Insurance – Your Shield When Accidents Happen

To start, let me just say that I am the master of breaking things. Put me in a room with your most expensive china and most of it (at least of the china I used) will probably be broken. I swear it is unintentional. It just happens. And, like most accidents, there is no rhyme or reason to it and no way to be prepared. So, if a disaster-waiting-to-happen (like me) is planning on visiting you at work you may want to consider protecting your assets with contractors liability insurance. That doesn’t mean you need to lock all of your valuables away or hide your fragile objects but you may want to get your business insured. Contractors liability insurance will make sure that your business does not fall victim to potential litigation as a result of an accident. Here is what you need to know:

Contractors Liability Insurance – Your Key to a Safer Future

You just invited a client over to meet with them about their future project (sometimes you go to their place of residence but today they decided to come to you). Problem is, on their way in they tripped over the door mat and injured their shin on your concrete floors. And now they are threatening you with a lawsuit. Luckily for you, you have liability insurance which protects you against third-party claims of property damage, injury or even death. You can also extend that coverage to protect your products or business from damage incurred by your employees. Accidents can happen anytime and anywhere and your best protection will come from liability insurance.

Is Contractors Liability Insurance Required?

Yes. Well at least in most states. And when states do not require some form of liability insurance the projects you are working on will probably require it. So, if you don’t have it you may want to go out and get it. You never know when you might need it next. Contractors liability insurance will keep you and your business safe from litigation if (and when) it pops up.

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Insurance Requirements for Contractors: Artisan’s Edition

As an artisan contractor your life is a little different from that of your average contractor. Your work is often more specialized, requires more intensive training and your day to day activities may be a little unique. And all of that unpredictability may make you uncomfortable. It also may make you believe that your insurance requirements will be complicated and expensive as a result of your occupation. We are here to tell you that that assertion, by no fault of your own, is inaccurate. Read more

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Insurance Requirements for Contractors: Why You Need Contractors’ Bonds Insurance

When you think Bond, what do you think? I am guessing somewhere between English gentlemen and MI6 covert intelligence agent. But that might just be me. 007 has been frequenting our bookshelves and the silver screen for decades now (over sixty years now) and while he may be a great source of cinematic escapism he cannot do much for your business. As a contractor you need a more practical bond. One that will cover your assets like James Bond (but with a little less collateral damage and a lot less gambling). You need contractors’ bonds insurance. Here is what you need to know about bonds and insurance requirements for contractors. Read more