Before you sign your name on a new contract, your insurance policy deserves a second look. Here are five mistakes we see contractors make — often without realizing it — that can create real exposure down the line.
1. Not checking the contract’s insurance requirements before bidding
Many contracts specify minimum coverage limits, additional insured requirements, or specific endorsements before work can even begin. Finding out after you’ve already committed to a project timeline puts you in a rush — or worse, in breach of contract if you can’t meet the requirement in time.
2. Assuming your GL policy automatically covers subcontractors
If you use subcontractors, their work — and their mistakes — can become your liability if they’re not properly insured themselves. Requiring proof of insurance and additional insured status from every sub you hire isn’t just paperwork; it’s protection.
3. Overlooking Builder’s Risk coverage on new projects
General Liability protects against injury and property damage claims, but it typically doesn’t cover the structure you’re actively building. Builder’s Risk fills that gap — and skipping it can mean a total loss isn’t covered if something happens mid-project.
4. Not updating coverage as the business grows
A policy that fit your operation two years ago may not reflect your current revenue, equipment, crew size, or the types of jobs you’re now taking on. Outdated coverage limits are one of the most common gaps we find during a policy review.
5. Waiting until a certificate of insurance is urgently needed
COIs are often needed fast — sometimes with same-day notice from a GC or property owner. Waiting until the last minute adds stress and risk of delay. Keeping your policy documentation organized and your agency easy to reach makes this a non-issue.
None of these mistakes are unusual — they’re common precisely because insurance isn’t most contractors’ full-time focus. That’s what we’re here for.
Leave a Reply