For contractors, the details matter. Your trade, subcontracted work, project size, completed operations, certificates, additional insured requirements, and contract language can all affect the coverage your business may need.

Active Jobsites

Tools, cords, materials, open work areas, temporary conditions, ladders, debris, and changing access points can create third-party injury exposures.

Existing Property

Contractors often work directly around walls, floors, plumbing, electrical systems, fixtures, windows, roofs, equipment, and customer belongings.

Subcontracted Work

Using subcontractors can change the insurance exposure and may create additional policy, certificate, contract, or underwriting requirements.

Completed Projects

Liability exposure may continue after the contractor leaves the jobsite when completed work is later alleged to have caused injury or property damage.

Water Damage During Work

A contractor accidentally damages a pipe or connection and water damages qualifying portions of a customer’s property.

Customer Trips at the Jobsite

A customer or visitor trips over materials, cords, equipment, or another temporary jobsite condition and alleges the contractor was responsible.

Damage to Neighboring Property

Work activity allegedly damages a neighboring fence, wall, vehicle, landscaping, window, driveway, or other property.

Falling Tools or Materials

A tool or construction material falls and causes qualifying injury or damage to property below or near the work area.

Interior Property Damage

Flooring, cabinets, furniture, appliances, fixtures, finishes, or other customer property is accidentally damaged while work is being performed.

Completed Work Causes Later Damage

Months after completion, work is alleged to have failed and caused additional qualifying property damage or bodily injury.

Certificate of Insurance

A certificate summarizes certain policy information and provides evidence that coverage was in effect when the certificate was issued. It does not create or expand coverage.

Additional Insured

A property owner, developer, general contractor, landlord, or other organization may request additional insured status when available and appropriate under the policy and endorsement.

Primary & Noncontributory

Some contracts request wording addressing how your insurance may respond in relation to other insurance available to an additional insured.

Waiver of Subrogation

Certain contracts may request a waiver of subrogation endorsement. Availability depends on the insurer, policy, contract, and applicable endorsement.

Certificates

Contractors may be expected to collect current certificates from subcontractors before work begins and maintain documentation.

Written Agreements

Written subcontract agreements can help document responsibilities, indemnification provisions, and insurance requirements between parties.

Coverage Requirements

Policies may establish minimum insurance limits, additional insured requirements, or other conditions for subcontracted work.

Uninsured Subcontractors

Using uninsured subcontractors can affect eligibility, audits, pricing, coverage, or available markets depending on the insurer and trade.

$1 Million

Per Occurrence

A commonly requested limit applying to a single qualifying covered occurrence, subject to the policy.

$2 Million

General Aggregate

A commonly requested aggregate limit applying over the policy period, subject to policy terms and applicable aggregate provisions.

Higher Limits

Project Requirements

Larger or more complex projects may require limits beyond the standard primary policy.

Installed Work Later Fails

Installed work is alleged to fail after project completion and causes qualifying damage to other property.

Later Bodily Injury

Completed work is alleged to have created a condition that later results in qualifying bodily injury.

Policy Timing Matters

Coverage depends on when the occurrence and damage take place, policy dates, policy form, exclusions, endorsements, and other applicable terms.

MAY NOT BE COVERED

Redoing the Contractor’s Own Defective Work

If the only issue is that the work was performed incorrectly and must be repaired or replaced, coverage may be limited or excluded.

MAY BE TREATED DIFFERENTLY

Resulting Damage to Other Property

If defective work causes separate qualifying property damage or bodily injury, the insurance company will generally evaluate the claim under the policy’s terms, exclusions, and endorsements.

Employee Injuries

Work-related injuries to employees are generally outside standard General Liability coverage.

Business Vehicles

Automobile accidents involving business-owned or operated vehicles are generally excluded from standard General Liability.

Owned Tools & Equipment

General Liability generally does not insure the contractor’s own tools, equipment, machinery, or business property against physical loss.

Professional Design Errors

Design, engineering, consulting, or other professional-service allegations may fall outside a standard contractor General Liability policy.

Intentional Acts

Intentional damage, fraud, criminal conduct, and knowingly wrongful acts are generally excluded.

Your Own Faulty Work

The cost of simply repairing or replacing defective work may not be covered, even when resulting damage could be evaluated differently.

Contract Requirements

What Does Additional Insured Mean for a Contractor?

Learn why property owners and general contractors request additional insured status, how endorsements work, and why a certificate alone does not create coverage.

Completed Operations

What Happens if a Claim Starts After the Contractor Finishes the Job?

Understand why liability exposure can continue after project completion and how completed operations may apply to certain later bodily injury or property damage claims.