Your General Liability Policy Should Cover the Work You Actually Perform

Contractors working in residential construction face insurance exposures that can be significantly more complex than standard commercial construction. At Pontell Insurance and Financial Group, we specialize in working with contractors performing residential construction, including contractors working on CATT projects — Condominiums, Apartments, Townhouses and Tract Housing.

Our agents understand the exclusions, limitations and underwriting issues that can affect contractors working on these projects. We don't believe simply having a General Liability policy or Certificate of Insurance means a contractor is properly protected. The details of the policy matter.

A certificate can show $1 million of General Liability coverage while an endorsement in the policy restricts or excludes the contractor’s actual residential work.

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What Is CATT?

CATT is an insurance industry term commonly used to describe Condominiums, Apartments, Townhouses and Tract Housing. These projects can create substantial construction-defect and completed-operations exposures because the same contractor may perform similar work across dozens — or even hundreds — of residential units.

For this reason, insurance carriers may restrict or exclude certain residential construction operations. A contractor can have a General Liability policy and provide a Certificate of Insurance to a general contractor or homebuilder, yet still have an endorsement in the actual policy that restricts or excludes coverage for the project.

We Look Beyond the Certificate of Insurance

A Certificate of Insurance is only part of the picture. When we work with residential contractors, our agents evaluate the contractor's actual operations and look for policy provisions that could create significant coverage concerns, including:

• CATT exclusions or limitations
• Tract housing exclusions
• Residential or new residential construction restrictions
• Condominium, apartment or townhouse limitations
• Project-size or unit-count limitations
• Completed operations restrictions
• Designated operations exclusions
• Roofing, height, EIFS or stucco exclusions
• Earth movement, subsidence or foundation-related exclusions
• Restrictions involving subcontracted work
• Additional insured, primary and noncontributory, and waiver of subrogation requirements

Our goal is straightforward: we want the insurance program to match the contractor's actual operations and contractual requirements.

Working With Large Homebuilders

Contractors performing work for large production and residential homebuilders can face particularly demanding insurance requirements. The insurance requirements in the subcontract can be just as important as the limits shown on the Certificate of Insurance.

We work with a wide range of residential trades, including:

• Concrete and foundation
• Framing
• Roofing
• Stucco and drywall
• Plumbing, electrical and HVAC
• Painting and flooring
• Landscaping
• Underground utility and site work
• Other residential construction subcontractors

Our agents understand how to review residential construction exposures and work with contractors to identify insurance programs designed for the work they actually perform.

Cheap Insurance Can Become Very Expensive Insurance

Residential contractor insurance is one area where choosing a policy primarily on price can create serious problems. A lower-priced policy may contain exclusions or limitations that another carrier is willing to cover for an additional premium. That difference matters.

If a contractor performs work across 50, 100 or 300 homes and a construction defect is later alleged, a seemingly minor coverage restriction can become a major issue.

We would rather explain before the policy is purchased why appropriate coverage costs more than explain after a claim why an exclusion may apply.

Experience Matters in Residential Construction Insurance

Contractor insurance isn't simply about obtaining a General Liability quote. It requires understanding the contractor's actual operations and matching those operations to the policy being purchased.

• What work do you perform?
• Who do you perform it for?
• What types and sizes of projects do you work on?
• What does your subcontract require?
• What does your insurance policy actually cover?

Those are the questions our agents ask. At Pontell Insurance and Financial Group, we work with contractors to identify their exposures, understand their contractual insurance requirements and find coverage appropriate for their operations.

The Question Every Residential Contractor Should Ask

“Does my General Liability policy cover the residential construction work I’m actually doing?”

If you perform work on condominiums, apartments, townhouses, tract homes, production homes or other residential construction projects, talk with an agency that understands the difference.

Talk With a Residential Contractor Insurance Specialist

Let Pontell Insurance review your current insurance program, your operations and the types of residential projects you perform. We can help identify potential coverage limitations and determine whether the insurance program is appropriate for your business.

Coverage availability, terms, conditions and exclusions vary by insurance carrier and policy. Any discussion of coverage is subject to the specific terms, conditions, limitations and exclusions of the policy issued. This page is intended for general informational purposes and does not alter or amend any insurance policy.

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