What Contractors Insurance Covers and What It Doesn’t

Contractors insurance is meant to address the risks faced by many businesses in the construction industry. Understanding your policy and identifying potential coverage gaps is essential for your financial protection and professional reputation.

What Does Contractors Insurance Cover?

While policies can be tailored to your specific needs, policies often include:

• General liability coverage may help with third-party claims for bodily injury, property damage or personal injury that occur on the job site or as a result of your operations.
• Workers’ compensation insurance may pay for medical expenses and lost wages for employees who are injured or become ill due to their work, as required by Oregon law for most businesses with employees.
• Commercial auto insurance may cover vehicles used in your business, including trucks, vans and trailers.
• Tools and equipment coverage may reimburse repair or replacement expenses if your tools or equipment are stolen or damaged.
• Professional liability insurance may cover legal fees and other related expenses if your business is accused of negligence in your work.

Common Exclusions in Contractors Insurance

Contractors insurance typically offers broad financial protection, but it may not cover every incident. Exclusions may include:

• Intentional acts—Damage or injury caused intentionally by you or your employees is typically not covered.
• Faulty workmanship—Policies may exclude the cost to repair or redo poor workmanship, though resulting damages may be covered.
• Contractual liability—Liabilities you assume under a contract may not be covered unless specifically added to your policy.
• Employee theft—Losses from employee dishonesty often require separate coverage.
• Wear and tear—Contractors insurance policies do not cover normal deterioration of tools, equipment or property.

Learn More

Since every contractor’s circumstances are unique, World of Insurance LLC can work with you to identify relevant risks and coverage gaps and recommend solutions that fit your business. Contact us today to schedule a consultation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.