What is the difference between contractor's liability and general liability?

Answer 1

Builders Risk - 1st Party coverage for a building under construction - covers the Property - building & materials. Contractors GL - Covers your exposure for causing Bodily Injury or Property Damage with exceptions. Covers you acting in your capacity as a contractor only, for example, kids playing on the job site fall in a uncovered trench. A GL policy would respond on your behalf. It would also respond to a claim such as one of your employees accidentally damages the Plumbing in a building & causes water damage. Professional Liability covers professional services such as design work, site assessments & the like. Any contractor that does any sort of design work needs a Professional Liability policy in case they make design errors. The GL policy specifically excludes this.

Answer 2

A contractor liability policy is simply a general liability policy built for a contractor, to cover their unique risks depending on the type of work they perform. Construction insurance doesn't follow standard insurance forms or rate filings and is frequently non-admitted depending on the risk.

When you are going to buy insurance you can tell them you need contractor liability or general liability for your contracting company and they are going to come up with the same thing. Since the policies usually aren't standard issue, make sure the broker discusses your companies common claims and how that specific liability quote would respond to them.

Answer

Contractors Liability is a contract of insurance tailored specifically for those undertaking contracting work. i.e house builders etc. These contractors are usually employed under a specific construction contract that stipulates what insurance is required and who is responsible for arranging this.

As with many contracting jobs, you will usually find there are a number contractors involved i.e Company building a new housing development you would have a ground worker digging the foundations, Builder building the shell of the house, roofer putting the roof on, plumber installing the plumbing and decorator completing internal decoration. With so many tradesmen involved a specific contract is necessary. Coverage under a contractors policy differs also. There are additional items that may need insurance such as the works being constructed (i.e the house) materials being used, tools and plant used. Also the contractors liability to the hirer for any plant hired. A general combined liabilty policy can cater for tradesmen but is purely Employers and Public Liability only and does not extend to include any other covers.