Common Contractors Insurance Exclusions or Limitations

Endorsements that significantly reduce coverage or worse, eliminate coverage all together, are not uncommon on Contractors Insurance Policies.    The absolute worst time to find out about your policy limitations or exclusions is at the time of a claim.  

The following are a few to be very concerned about: 

• Major contractual liability limitations:
     -You may enter a few or several Construction Contracts each year.    This endorsement can lead to breach of contract or worse, an uncovered claim.  

• Classification of Operations Limitation: 
    -The policy may limit operations to your Primary Operations only.  This could be a problem if on occasion you sub out work to another construction trade and a claim   arises as a result of the subs negligence – coverage will not apply.  

• Limitation or exclusion of coverage for subcontractors: 
  -Often an endorsement is added that will provide significantly reduced policy limits or no coverage at all for claims that arise from subcontractors.