Contractors InsuranceSpring and summer are popular times of year that contractors typically find themselves flooded with jobs due to the nice weather and an improving economy. However, having plentiful job opportunities doesn’t come without some difficulties associated with some common risks with which artisan contractors are associated. Without the right type of N.C. contractors insurance, you could be exposed financially, leaving you in a hole. Does your N.C. contractors insurance have a gap that could destroy your business as well as your reputation?

As an artisan contractor, you have to hustle to meet job demands, survey potential jobs, and organize work crews on a daily basis to satisfy the customer, but what about when something goes wrong? Accidents and faulty workmanship, regardless of how careful you are, can and do happen, leaving the customer disgruntled, assets exposed, and your business reputation compromised.

Filling the Gap 

As a contractor, you are required to have a N.C. Commercial General Liability (CGL) insurance policy, but will that protection be adequate in the situation of a job “gone wrong?” The CGL insurance is intended to protect you against third party claims for property damage, bodily injury, personal injury, and advertising injury, but what you may NOT know is there are conditions, exclusions, and provisions attached that can leave everything you have worked hard for exposed to financial ruin.

Know the Exclusions 

The N.C. CGL insurance policy clearly excludes the following:

  • Your Work
  • Your Product
  • Impaired Property

The Commercial General Liability policy considers these exclusions as normal expenses of “doing business” so what happens when you are hired for a flooring job and the customer is dissatisfied with the quality of work and the product, citing neither was what was promised? Now the entire floor has to be ripped out and re-installed and you are faced with a disgruntled customer and a possible legal dispute. The typical CGL will not provide protection for this situation and you are left paying for the cost of “doing business” and possible legal ramifications.

The Good News!

The good news is that there is an add-on endorsement called Errors and Omissions Coverage (E & O) that can be added to your existing N.C. insurance policy that is intended to protect you for claims made by any third party for damages to:

  • Your Work
  • Your Product
  • Impaired Property

caused by any “wrongful act” during the scope of contracting work.

This endorsement is an inexpensive way to provide the peace of mind that if something does go wrong, you will have the protection you deserve. Mistakes happen all the time and by investing in this added protection, you know your assets/business will be protected and reputation safeguarded. After all, your livelihood depends on this type of needed protection.

Twin City Insurance understands the high demands of being an artisan contractor and wants to secure the type of insurance protection you need and deserve TODAY! Call us at 828-464-2643 with any questions regarding E&O insurance coverage or for any of your N.C. contractor insurance needs.