Are You Sufficiently Covered?
Obtaining the right insurance coverage for restoration contractors can be tough. The coverages are complicated, the risks are unique, and very few insurance agents understand the industry.
Knowing whether your company is protected can be a nightmare as most restoration contractors will have at least 5-8 insurance policies through multiple insurance agencies.
Below we have compiled a few insurance questions to help restoration contractors understand their unique insurance risks. As you glance through the questions, if any of them read like a foreign language or you have no idea what your policy provides, we recommend that you reach out to your insurance specialist for a policy review.
Does your insurance policy(ies) extend coverage for your work past the completion of a project?
Does your general liability policy exclude claims arising from work performed by subcontractors?
Do your general liability or pollution liability policies cover property that’s in your care, custody or control? What exactly does that mean and how could that affect you?
Are you classified properly within your general liability policy? (Improper classification can lead to both premium and claims nightmares.)
Mold, Asbestos, Lead & Toxic Drywall
One of the coverages unique to restoration contractors is coverage for mold, asbestos, lead remediation, and toxic drywall. Coverages for these exposures can be very complicated and difficult to obtain.
In fact, most insurance policies, including pollution liability policies, contain exclusions for these common exposures. Without the proper policy, you could be left to defend and pay these types of expensive claims on your own.
ARI's exclusive insurance program not only addresses these issues, but provides your company with the coverage it needs to ensure it has the proper coverage.
Do you have a pollution liability policy?
Does your pollution liability policy provide coverage for property damage arising out of impairment?
Environmental insurance, including pollution liability, is very complex and, unlike general liability insurance, lacks standardization. In fact, only one out of every seventy-five insurance agents in the United States has sold an environmental insurance policy.
With over one hundred different environmental insurance policies available in the market place and hundreds of customizable endorsements, the need for specialty expertise in environmental insurance is obvious. Most “off the shelf” environmental insurance products are not well suited for restoration contractors. It is increasingly difficult to find an agent that can address all of these complex coverage needs.
Do you have all of your property and equipment insured, including tools and equipment located on jobsites?
Is your truck-mounted extracting equipment covered properly? (Over half of the contractors we meet with have this improperly classified.)
Do you have Bailment (Bailees) coverage? Do you need this coverage? If so, does it contain a legally liable clause? Should it?
What is professional liability insurance? Does your company need it?
Does your professional liability policy define your operations with wording specific to the IICRC standard of work?