Insurance Coverage For Contractors

Most Commercial General Liability (CGL) insurance policies require contractors to obtain written contracts with their subcontractors. In fact, some of them require the written contract to contain an indemnity clause (promise to defend and/or cover the cost of the judgment). If you fail to meet these requirements, the CGL carrier takes the position that your work is not covered. Thus, if you get sued, don't count on having the carrier defend you or cover the judgment or settlement, unless, you have a signed written contract with your sub-contractor, that contains an indemnity clause.

However, there is a common mistake made by the insurance companies that may enable you to obtain coverage. If a sub-contractor names you as an additional insured and the sub-contractors carrier fails to provide you with a copy of the policy or give you notice of the exclusion, the carrier may not be able to rely on the exclusion as a basis for denying coverage. In otherwords, if the carrier doesn't tell you in advance that it will not provide coverage without a signed contract that contains an indemnity clause, they may have to provide you coverage.

I am attorney Robert A. Von Esch IV. If you are involved in a construction defect or construction dispute, and your carrier is denying coverage, please do not hesitate to contact me. My contact information is available at www.voneschlaw.com.