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Contractor's Insurance Blog

RedHotInsurance.Net provides daily news, tips and articles about commercial insurance.


Hello everyone, As you may have noticed, we haven't put up any blogs on this website in awhile.  Tarah's been out on maternity leave and we are referring all of our clients to our other website  There you will be able to get instant quotes online without having to wait for a broker to call you back.  Please check it out,  Thank you.


Employers Liability Insurance and Third Party Action-Over Claims

Third-Party Action-Over claims are one of the fastest growing types of claims in contractor’s general liability insurance.  In a nutshell, lawyers have figured out a way to file a claim on your general liability policy for something that should be covered through your Employers Liability Insurance. The results of these claims for contractors are higher rates on their liability insurance and potential gaps in their liability insurance coverage....READ MORE


Lead Paint: How The EPA's New RRP Rules Affect Your Liability

If you’re a contractor in the US, you already know about the Renovation, Repair and Paint Rules issued by the Environmental Protection Agency in 2010.  But many contractors may not have considered how these rules may affect their business’s liability.  We believe that these laws increase contractor’s exposure to Pollution Liability losses....READ MORE


Subcontractor Warranties - Contractors Beware!

As a business owner, you’re probably aware of the fact that insurance companies will do whatever it takes to deny coverage in the event that you have a claim.  Subcontractor warranties written into commercial general liability policies are an easy way for them to do so....READ MORE


The Seven Deadly Endorsements - Part 7
General Liability Endorsements That Are Bad For Contractors

Endorsement #7 – CG 21 34 - Designated Work Exclusion

A Designated Work Exclusion is a form used by insurance carriers to exclude specific types of work from coverage.  This general liability endorsement can be harmless or very bad for a contractor depending on what it says....READ MORE


The Seven Deadly Endorsements - Part 6
General Liability Endorsements That Are Bad For Contractors

Endorsement #6 – The Manifestation Provision

Although there is not a standard manifestation provision, this type of wording has been adopted by many insurance carriers as a way to restrict coverage for losses resulting from long term exposures like construction defects.    The manifestation provision restricts coverage to occurrences that “first manifest” during the policy period.  Which means....READ MORE


The Seven Deadly Endorsements - Part 5
General Liability Endorsements That Are Bad For Contrators

Deadly Endorsement #5
The CG 21 49 - Total Pollution Liability Exclusion

To understand the Total Pollution Exclusion, you must first know about the standard Pollution Exclusion that already exists in most general liability policies. Specifically, the standard ISO Commercial General Liability policy excludes bodily injury or property damage losses arising out of the release of pollutants.  There are, however, several exceptions to this exclusion....READ MORE


The Seven Deadly Endorsements - Part 4
General Liability Endorsements That Are Bad For Contractors

Endorsement #4 – The CG 21 39

One of the most important considerations a contractor must make is the amount of liability he assumes in a contract and whether or not his insurance covers contractual liability.  In most construction contracts, liability is transferred....READ MORE


The Seven Deadly Endorsements  -Part 3
General Liability Endorsments That Are Bad For Contractors

Endorsements #3 – The CG 22 94

The CG 22 94 is one of the most complicated endorsements in contractors liability insurance.  To understand this endorsement, you must first understand the standard “Your Work” exclusion in the ISO CG 00 01 policy.  A standard general liability policy states that damage....READ MORE


The Seven Deadly Endorsements - Part 2
General Liability Endorsements That Are Bad For Contractors

Endorsement #2 - The Prior Work Exclusion

At face value, prior work exclusions do not always concern contactors.  The rationale is, why should they buy coverage for prior work when they already had policies during the time that work was completed?    To understand why this endorsement is dangerous....READ MORE


The Seven Deadly Endorsements  - Part 1
General Liability Endorsements That Are Bad For Contractors

Deadly Endorsement #1 – The Sunset Clause

A general contractor completes a new home in 2008.  He carried a $1,000,000 general liability policy at the time the house was built and has continued to renew his coverage ever since.  In 2011, the contractor is sued for a construction defect on the 2008 home.  He files a claim with his insurance carrier.  The carrier denies coverage and refuses to provide any defense for the contractor.  Why?....READ MORE 


Effective 1/1/12 - California Contractors Can Operate as Limited Liability Companies

Due to the passage of Senate Bill 392, California contractors can now hold a license as a Limited Liability Company.  The CSLB will begin processing LLC license applications by January 1, 2012. This is big news for contractors who wish to protect their personal assets....READ MORE


Special Considerations for Plumbers Insurance

Plumbing contractors have a special set of concerns when it comes to safety and protecting themselves with the right insurance.  Plumbers face increased liability due to fire and water damage hazards and increased risk of loss or theft of copper pipe, tools and equipment.  If you’re a plumber take a few minutes and read about some things you should be aware when reviewing your insurance policies...READ MORE


The  CG 20 10 (11/85) -
What You Should Know

It’s a common story.  A commercial contractor buys a general liability policy in order to fulfill a contract.  He spends weeks shopping for the best rate and buys a policy that includes additional insured endorsements.  He provides his certificate of insurance to the project manager, only to find out that his insurance is not sufficient.  His contract requires a CG 20 10 (11/85) additional insured endorsement, which his policy does not...READ MORE


Instruction Video For Our Janitorial Insurance Program



Floor Waxing Operations Increase Risk for Janitorial Firms

If you’re a janitorial firm working in retail stores or commercial buildings, chances are that floor waxing is a major part of your operations.  And chances are that you assume that your general liability policy covers you for those operations.  A precaution: take a second look.  Many general liability policies written for janitorial contractors exclude... READ MORE


What Business Owners Should Know About Personal Auto Insurance

In April 2007, Lauren Anderson was involved in a collision in San Diego, CA.  She was rear-ended by a pick-up truck owned by a licensed plumbing contractor.   The contractor, who was found to be at fault, was driving a truck with his business name and contractor’s license number painted on the side.  Although he sometimes....READ MORE.


Construction Defect Litigation On The Rise

Most often contractors buy general liability insurance in order to satisfy a contract, get paid or get on a jobsite.  Many contractors would never spend the extra money, especially those contractors who stand behind the quality of their work.  But, the fact is that construct defect litigation is on the rise in the United States... READ MORE


Tarah M Gruber
CA License 0H13063 
Phone: 888-269-0992

Contractors Insurance Experts for General Liability Insurance, Workers Compensation, Commercial Auto, Surety Bonds, Errors & Ommissions, Equipment, Builders Risk, Payroll Services and more.