The Difference Between Liability and Comprehensive Contractors Insurance That Everyone Needs to Know

Posted by Daniel lawrence on February, 2016

A homeowner is looking at all the ambitious ideas they have for a new remodeling project. They will do some of the work on their own and subcontract the rest. Many homeowners get caught up in finding a great contractor and how they are going to creatively remodel their space. There should also be a lot of discussion about insurance because it is the single thing that will save a project (and the bank account) when a disaster happens. What are some differences in Contractors Insurance that everyone involved with a remodeling project needs to know?

Liability and Responsibility

The most basic form of Contractors Insurance is the liability. The coverage will generally only cover an incident if the general contractor is responsible. A contractor may hurt someone else in a project, such as a family member on-site or a postal driver. That responsibility is held by the contractor. The coverage will not cover injuries to co-workers on the project or injuries to the general contractor. This allocation of responsibility may be why a contractor has a clear line where they do not want people accessing. They use clear precautions because of the insurance costs. Interestingly, liability will rarely cover tools. It only accounts for personal injuries, so broken equipment and lost items are lost in the shuffle. Who knows who is responsible? This is one of the main reasons why comprehensive coverage is superior. It accounts for more and protects more aspects of the remodeling project in Pennsylvania.

Covering Tools and Other Injuries

Comprehensive will cover injuries of all kinds and to all parties. Homeowners may want to discuss what is important to them, and how they want to responsibility and coverage to be allocated. It becomes specifically important when a project is huge and extensive.

The same type of association between liability and comprehensive is present in auto insurance coverage. Homeowners should take a detailed look at their own homeowner’s insurance. The website at Nepainsurance.com discusses the relationships between different insurance policies when working on a remodeling project. A representative will walk a client through the best type of policy for a big and ambitious new project.

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