Why You Should Be Checking Your Insurance Policy

By Cass Jacoby, RCS Reporter.  

The number one thing you should be looking for in your contracts to ensure you have coverage.  

Let's admit it, we don’t always know what a legal document means when we sign it. Especially in the world of insurance, it is easy to be out of depth and not really know what certain things in a contract mean. However, there are some key things you should be wary of as a roofing contractor, because they can have negative implications if they are in your contract.  

In a Roofing Road Trips podcast with Seth and Ashley Pietsch from Integrity Insurance & Bonding speak on why it is so important to know about your contract and pick the right insurance company. 

“There's just so many moving pieces and there’s always a target on our back from a claim perspective,” says Seth. “Whether it's a roofing issue or not, you can get blamed, so really understanding the importance of having the right coverage is going to be critical.” 

The number one thing to look out for in your contract is a Prior Work Exclusion. There are few endorsements on a Contractor’s General Liability more confusing, but this can hurt a contractor because it excludes coverage for all the projects you have performed in the past. 

It basically states that the policy will not pay for any bodily injury of property damage claims made against you if the damage occurred during a project that was completed prior to the first day you got your General Liability policy. This means that if damage occurs after the project, you will not be covered.  

“You want to make sure that if a construction defect comes up for a project that you worked on five years ago, your current carrier will jump in and defend you on the claim, whether that's just defense costs or indemnity payments,” says Seth. “But if they have a prior work exclusion, anything that you did prior to that insurance carrier offering coverage is completely excluded underneath their policy. 

Most of the time, Prior Works Exclusions are optional, so you want to avoid them so your insurance covers the work you have performed in the past or prior.  

Listen to the entire podcast to learn more about what certain policies entail and how it impacts the roofing contractor from a coverage perspective, or you can read our eBook, 10 Endorsements to Avoid in your Insurance Policy. 

 Learn more about Integrity Insurance & Bonding at their website!