What May Not Be Covered Under a Standard Contractor’s Insurance Policy

Consider What May Be Excluded from a Contractor’s Insurance Policy 

If you’re a contractor, you may have some coverage issues that you need to review. You may be aware that although contractors insurance in Orange County covers a great of circumstances, every policy has its limits and exclusions. Before you secure coverage and complete your next project, it is wise to be aware of common exclusions that contractors will have to face. Take a look at three items that may not be covered under a standard contractors insurance policy.

• Contractual Liability

Your contractor insurance may have an exclusion for contractual liability if you sign a contract or agreement in which you assume liability for bodily injury or property damage. In essence, you have assumed the liability for another party in a contract or agreement that your insurance coverage does not cover.

• Electronic Data

The property covered by your general liability policy is “tangible” property, and electronic data is not considered tangible. For this reason, electronic data may be excluded from coverage. That means if your laptop is stolen from your work truck and the customer information that you had inside leads to identity theft, your general liability policy won’t cover the costs of a lawsuit. To protect yourself in this respect, cyber liability insurance must be purchased.

• Damage to Property

Although your contractor’s insurance policy will cover claims for third-party property damage, it generally excludes coverage for any property owned, rented to, or occupied by you. If you borrow and use a hydraulic lift and damage it, you cannot file a claim against your policy to repay the cost of fixing the equipment. If you borrowed equipment, it’s considered your property and may not be covered by your liability coverage.

Working with the right insurance agency can ensure that you get the right contractor’s insurance for your needs. For assistance with your unique coverage needs, contact the experts at Artisan Insurance Solutions to get started today.