E and O Insurance for Contractors
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E and O Insurance for Contractors

If you write General Liability insurance for contractors, you may be missing something.

With Professional liability insurance being a very common exclusion in
contractors GL policies; you may want to consider the following. An insurance agent in Phoenix Arizona produced a policy for a landscape contractor. The agent was very diligent to point out all of the exclusions in the policy. Including the exclusion for professional liability insurance.

The customer Isn't always Right

Two years later the Landscaper was served with a lawsuit for faulty design.
The contractor had designed the drainage system and graded accordingly. When
rain came to Phoenix (yes it does happen)the system failed and caused property
damage to the property owner. The carrier denied the claim and the contractor
filed a claim with the agents E&O Insurance carrier. The carrier settled the claim for a small amount but his E&O carrier non-renewed his policy over the claim.

Don't just point out the exclusions, offer the coverage. It is very easy,
all you have to do is offer the coverage with "Premiums starting at $750.00".
Have the customer sign the offer declination. I think you will find this method not only protects you from a possible E&O Insurance claim but will bring additional sales.

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