The Expert Podcast

• Specialized Work Requires Specialized Insurance:
  • General contractor insurance policies may not cover certain types of specialized work.
  • Artistic projects like high-end woodwork, marble installations, or structural projects may present additional risks.
• Policy Exclusions:
  • Bonds and general professional liability policies may have exclusions for specific types of specialized work.
  • It's essential to verify if your insurance policy covers the activities involved in your specialized projects.
• The Importance of Tailored Coverage:
  • Broad policies may not provide adequate protection for niche or complex projects.
  • Deeper, specific coverage is often necessary to address unique risks.
• Real-Life Example:
  • A contractor transitioned from granite and marble countertops to artistic marble installations.
  • Projects included vertical walls, fireplaces, and outdoor landscaping items, which required additional engineering (e.g., support braces, rebar).
  • A collapse occurred due to unforeseen water erosion, causing structural damage and water line issues.
  • Insurance didn’t cover the loss because the policy didn’t include this type of specialized work, leaving the contractor unprotected.
• Actionable Advice:
  • Consult Your Insurance Broker: Review your current policy if you're branching into specialized contracts or projects.
  • Ensure Comprehensive Coverage: Address potential gaps to avoid exposure and uncovered losses.