Step on a Crack Break a Contractor’s Financial Back

This has been a beautiful summer in Northeast Ohio unless you have been trying to walk on the sidewalks in one of the neighborhoods that are in the middle of its sidewalk replacement program! Walking in the street or in the grass can be dangerous but, in the end, having nice level sidewalks throughout the area will make walking a joy. Read more

As a local insurance agent, you know I’m not writing a blog about walking but I’m writing about Contractors Errors and Omissions Insurance. One of the houses in a development that I frequently walk in had all of their sidewalks replaced when they were not supposed to be. The engineering department had not marked them for replacement but the contractor removed them in error. The contractor quickly replaced the sidewalk and a city representative and the contractor were quick to let the property owner know the replacement was done at no cost to them!

Now we get to the good stuff. The property owner recently had their sidewalk replaced with hand finishes in a beautiful swirl pattern, the contractor finished the sidewalk with the less expensive and less attractive broom finish. Once the contractor removed the sidewalks that should never have been replaced a contractor’s error or omission has occurred and the situation may have been compounded when the finish was changed without discussing the situation with the property owner.

What is contractor’s errors or omissions insurance? In general terms it provides insurance coverage for a wrongful act performed by you or on your behalf in the performance of the services you provide that result in property damage to your work or installed product. It may also provide coverage of loss of use or recall of your work or your installed product and finally in the case of the example above diminution in value of impaired property!

Everybody can make a mistake and that is why every contractor should carry insurance but most General Liability policies excludes coverage for your work so a contractors errors and omissions policy can be key in keeping you from breaking your financial back.

As an artisan contractor in Northeast Ohio the need to have a properly crafted insurance program is key to your success, so before you renew you General Liability Insurance, Business Auto Insurance or Inland Marine Insurance contact the Trusted Choice agents at Richey-Barrett.