3 Things Contractors Should Consider When Picking Insurance

3 Things Contractors Should Consider When Picking Insurance

Potential gaps in coverage in areas such as construction defects, contractors pollution or data breaches can prove costly.

Construction workers and architects at a construction site viewed from above

A booming construction market, including an increase in infrastructure spending, means the need for contractor liability insurance has never been greater.

But it’s also critical that contractors choose the right insurance coverage to minimize the unique risks they face. Although contractors often need liability insurance coverage, they don’t always purchase it because they may wrongly assume their general liability policy will be sufficient.

The following three potential gaps in coverage can prove to be costly if a contractor is not sufficiently covered.

  1. 1. Construction defects

    Illustration of construction worker running from material falling down

    This covers a problem with the design or construction of a structure, or faulty workmanship that leads to damages or injuries. It can also cover lawsuits stemming from defective or damaged building materials.

  2. 2. Contractors pollution

    Illustration depicting man with shovel running away from spilled harmful chemical

    Injuries to third parties, property damage, defending against a related lawsuit or cleanup costs that result from pollution conditions should all be covered. But these costs are often listed under the pollution exclusion in general liability policies. Coverage is also needed for pollution caused by subcontractors working on the insured’s behalf.

  3. 3. Cyber

    Illustration of a criminal stealing a drone

    Contractors need to consider coverage for data breaches. Some examples involve the use of drones, smart buildings and data stored on laptops. If a drone is stolen or misplaced and falls into the wrong hands, the data it collected could be stolen. Buildings that integrate information technology to improve efficiency can also be hacked into by others. And in the case of laptops, which are used today by most contractors on job sites, highly sensitive data could be breached.

About Argo Pro

Argo Pro, a member of Argo Group, is a leading provider of professional lines insurance products and services that can accommodate medium and large organizations on an admitted and nonadmitted basis. Through a single operating platform and a robust network of appointed wholesale and retail distribution partners, Argo Pro offers a broad, customizable portfolio of errors and omissions and management liability insurance solutions. Argo Pro maintains offices in Chicago, New York City, San Francisco, Scottsdale and Hamilton Township (New Jersey).

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