Tom's Blog
Does Your N.C. Contractors Insurance Have a Gap?
Spring and summer are popular seasons when contractors often find themselves flooded with jobs due to favorable weather and an improving economy. However, while plentiful job opportunities are welcome, they come with certain risks commonly associated with artisan contractors. Without the right type of N.C. contractors insurance, you could be financially exposed, potentially leaving you in a difficult situation. Does your N.C. contractors insurance have a gap that could threaten your business and reputation?
As an artisan contractor, you work hard to meet job demands, survey potential projects, and organize work crews daily to satisfy your customers. But what happens when something goes wrong? Accidents and faulty workmanship can occur, despite your best efforts, leaving customers disgruntled, assets exposed, and your business reputation at risk.
Filling the Gap
As a contractor, you are required to have a N.C. Commercial General Liability (CGL) insurance policy. However, is that protection enough when a job goes wrong? CGL insurance is designed to protect you against third-party claims for property damage, bodily injury, personal injury, and advertising injury. However, you may not realize that there are conditions, exclusions, and provisions that could leave you financially vulnerable.
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.” For example, what if you are hired for a flooring job and the customer is dissatisfied with the quality of work and product, claiming neither met their expectations? If the entire floor must be ripped out and re-installed, you’re faced with a disgruntled customer and a possible legal dispute. The typical CGL policy will not cover this situation, leaving you responsible for the cost of “doing business” and potential legal consequences.
The Good News!
The good news is that an add-on endorsement called Errors and Omissions Coverage (E&O) can be added to your existing N.C. insurance policy. This coverage is designed to protect you against claims made by any third party for damages to:
- Your Work
- Your Product
- Impaired Property
This coverage applies to any “wrongful act” during the scope of your contracting work. This endorsement is an affordable way to ensure peace of mind, knowing that if something goes wrong, you have the protection you need. Mistakes happen, and by investing in this added coverage, you can protect your assets, safeguard your reputation, and secure your livelihood.
Paramount Insurance Agency understands the high demands of being an artisan contractor and is here to help you secure the insurance protection you need and deserve TODAY! Call us at 336-869-3335 with any questions regarding E&O insurance coverage or for any of your N.C. contractor insurance needs.
