Contractor's Insurance And Negligent Acts

​You may have heard the term "negligence" thrown around when it comes to contractor's insurance, but what does it mean? Negligence is a legal term that refers to the failure to act with appropriate care in a given situation. 

In short, insurance companies use negligence to determine if they will pay your claim. The contractor's insurance covers certain negligence acts, including those committed by employees.

It can also cover contractors who are working for you temporarily.

What Does Negligence Mean in Insurance?
The definition of negligence in insurance is when someone breaches their duty to take reasonable care to prevent injury or damage. Negligence can arise where the person has breached an obligation implied by law or imposed by statute, regulation, or contract. 

As a result, they are causing harm to another person's property.

How Does Negligence in Insurance Work?
When an insured person is negligent, it may be grounds for the insurance company to deny coverage. Negligence is characterized by carelessness or disregard. 

The definition of negligence varies in different jurisdictions. Still, generally, if you're found to be negligent, you'll be found liable for any damages the injury caused.

What Negligent Act Does Contractor's Insurance Cover?
Contractors must carry liability insurance for their protection and that of their clients. General contractor insurance commonly covers negligence or errors in construction, such as structural or water damage, and may pay the cost of repairs. 

The contractor's work is not always covered by homeowner's insurance and can lead to costly lawsuits.

In general, contractor's insurance covers the following:

• Negligence in the design, construction, or quality of a project
• Negligence in equipment use
• Liability for bodily injury caused by an insured person's negligence
• Property damage or loss caused by an insured person's negligence

Do All Contractor's Insurance Policies Cover Negligence?
Contractors insurance is not a blanket policy, and it does not cover negligence. If you're acting in a deliberate manner, such as when you intentionally cause property damage or injure someone, the contractor's insurance policy will not offer coverage.

Wrap Up
Keep in mind that contractor's insurance policies are designed to cover the policyholder for losses they suffer due to physical damage to their property. 

May that be while at a job site or while performing their duties, or while on the way back to their place of work. These policies also allow the contractor to recover any out-of-pocket expenses for clean-up, remediation, and repairs.

At Robinsons Insurance Agency LLC, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 254-7350 or Click Here to request a free quote.