Frequently Asked Questions
Most contractors should consider General Liability, Workers’ Compensation, Commercial Auto, and coverage for tools and equipment. Depending on the type of work performed and contractual requirements, a contractor may also need Umbrella or Excess Liability, Builders Risk, Professional Liability, Pollution Liability, Cyber Liability, or Surety Bonds. The appropriate coverage depends on your trade, operations, employees, subcontractors, vehicles, equipment, and the projects you perform.
Yes. Contractors and construction businesses are a major focus of PSA Insurance Services. We work with general contractors, artisan and specialty contractors, and other construction-related businesses to arrange General Liability, Workers’ Compensation, Commercial Auto, Inland Marine, Umbrella and Excess Liability, Builders Risk, Bonds, and other commercial insurance coverage.
Yes. PSA assists our contractor clients with Certificates of Insurance and related endorsement requirements. When a contract requires Additional Insured status, Waivers of Subrogation, Primary and Non-Contributory wording, or other coverage provisions, those requirements must be supported by the applicable insurance policies and endorsements before they can be properly evidenced.
Yes. PSA Insurance Services regularly works with contractors that must satisfy insurance requirements imposed by general contractors, developers, property owners, and property managers. We can review insurance requirements and help determine whether your current policies and available endorsements can satisfy them. Insurance requirements should be addressed before work begins whenever possible.
Umbrella or Excess Liability insurance can provide additional liability limits above designated underlying policies. Contractors often purchase this coverage because their operations create significant liability exposures or because a general contractor, developer, property owner, or construction contract requires higher liability limits.
Hired and Non-Owned Auto coverage can provide liability protection for certain vehicles your business rents, hires, or uses but does not own. Non-Owned Auto exposure can arise when employees use their personal vehicles for company business. This coverage does not necessarily provide physical damage coverage for the vehicle itself.
Possibly. Coverage for business use varies among personal auto policies, and some business activities or vehicle types may not be adequately covered. Contractors who regularly use vehicles for business should review their auto exposure to determine whether Commercial Auto or other business auto coverage is appropriate.
Builders Risk, sometimes called Course of Construction insurance, provides property coverage for a building or structure while it is being constructed or renovated. Depending on the policy, coverage may include the structure, building materials, supplies, and certain property associated with the project. The construction contract should be reviewed to determine which party is responsible for obtaining the coverage.
Contractors commonly use Inland Marine or Contractors Equipment coverage to protect tools and mobile equipment that travel between locations and job sites. Coverage can often include smaller tools on a blanket basis and higher-value equipment on a scheduled basis. Limits, deductibles, theft provisions, and coverage away from scheduled locations should be reviewed carefully.
Yes. Payments to uninsured subcontractors can potentially be included in the exposure used to calculate Workers’ Compensation premium, depending on the circumstances and applicable rules. Maintaining appropriate documentation and verifying subcontractor insurance before work begins can help avoid unexpected issues at audit.
It depends on the policy. Contractor policies can contain conditions, limitations, or exclusions involving subcontracted work. Contractors should also verify that subcontractors maintain appropriate insurance and obtain certificates and required endorsements. Using uninsured or inadequately insured subcontractors can create significant liability and Workers’ Compensation exposures.
A Certificate of Insurance is evidence of insurance, but the certificate itself generally does not amend, extend, or alter the coverage provided by the policy. If a contract requires Additional Insured status, Primary and Non-Contributory coverage, a Waiver of Subrogation, or another specific provision, the actual policy endorsements determine whether that coverage has been provided.
A Waiver of Subrogation generally limits an insurance carrier’s ability to recover certain amounts it has paid from another party when the applicable policy and endorsement provide for the waiver. Contractors are frequently required by contract to provide Waivers of Subrogation on General Liability and Workers’ Compensation policies.
Primary and Non-Contributory wording generally requires your insurance to respond on a primary basis for a covered claim involving an Additional Insured without seeking contribution from the Additional Insured’s own insurance, subject to the terms and conditions of the applicable policies and endorsements. This requirement is common in construction contracts.
An Additional Insured endorsement extends certain liability protection under your policy to another person or organization, such as a general contractor, property owner, developer, or property manager. Construction contracts frequently require contractors to provide Additional Insured coverage for ongoing operations, completed operations, or both. The specific endorsement used can be important because not all Additional Insured endorsements provide the same coverage.
Contractors General Liability insurance can provide coverage for covered claims involving bodily injury, property damage, and certain other liabilities arising from your business operations. Coverage varies by policy, and exclusions can be particularly important for construction risks. Contractors should review not only their limits but also endorsements and exclusions that may restrict coverage for particular operations, projects, subcontracted work, or completed operations.
