When someone decides that they want to start doing projects for others, like building a house, garage, building additions or remodels and they think of insurance they think of a contractors general liability policy.
A general liability policy pays for someone else's bodily injury and/or property damage. So if you leave your hammer on the ground and someone trips over it and breaks their ankle...no worries there is probably coverage for that. I say probably because I am not a claims adjuster and every policy has specific terms and conditions. So I can't tell you for sure it would be covered. But probably.
If you install a set of stairs and handrail and the project is complete and a few days later the handrail breaks and you submit the claim on your general liability policy - it probably is not covered. "Your Work" is always excluded. This ensures that contractors do the best possible job. So you have to pay to fix the handrail. If the handrail broke and someone fell then that persons bodily injury probably would be covered - but not money for you to fix the handrail.
Another good example is a contractor was hired to build an addition. He was just about finished building the addition and was staining a few pieces of wood inside the addition. At the end of the day he threw the rags in a bucket and left them overnight until he returned in the morning. The rags start fire due to spontaneous combustion overnight and caused the addition to burn down and caused smoke damage throughout the rest of the house. The policy will pay for smoke damage throughout the rest of the house, but will not pay for the fire damage to the addition.
So what can you do?
If you are building a house, a building or an addition you need a builders risk policy to protect your investment in that project.
Builders risk policies are very affordable and can be issued and cancelled at any time.
Give us a call for a builders risk quote today!