Contractor Excess Insurance

The Benefits of Contractor Excess Insurance

contractor excess insurance

What are the benefits of Contractor Excess Insurance? It’s an essential piece of coverage for any contracting business. You can find it at a great price! Here are some tips to help you find a policy. Exclusions, Cost, and Coverage Limits are important factors to consider. A good policy should cover any unexpected costs. Excess insurance can be especially useful if you’re working in a high-risk industry.

Coverage limits

Many project owners and general contractors require additional insured coverage for their subcontractors. This additional insured coverage is typically satisfied with a combination of primary and contractor excess insurance. This consistency is important because parties expect consistent coverage. If you are bidding on a large project, it is advisable to specify the terms and conditions of the additional insured insurance in your contract. Listed below are some common coverage limits for contractor excess insurance. To avoid any surprises, review your contract carefully.


The first thing to note about contractor excess insurance is that many of these policies contain onerous endorsements. These are usually the result of inadequate coverage. Contractors who use surplus and excess markets should review their policies carefully to ensure they have adequate coverage. In addition, be aware of the different labels that carriers apply to onerous endorsements. A general overview of the different types of endorsements is available below. This article will cover some of the most common types of exclusions that contractors can encounter.


The construction industry has seen increased interest in excess/umbrella policies, even though rates across all lines of business are increasing. While this growth has dampened the rate increases for other liability coverage, the rate increase for excess/umbrella policies has been the largest. Since the COVID-19 pandemic hit many contractors and affected their payrolls and vehicle counts, rates are expected to continue rising. However, insurers are reducing their capacity to meet the increased demand.


How much should a contractor spend on excess insurance? The cost of excess insurance will vary depending on the scope of the project and the amount of risk involved. Generally, higher-risk contractors pay more. It’s worth looking into the cost of contractor excess insurance before signing a contract. Here are some things to consider:

Scope of coverage

Contractor excess insurance policies can increase the limits of other underlying policies. These policies address a particular type of risk and the associated losses. However, they have a limited scope of inclusion and financial limits. If you are sued for a claim that falls outside of the scope of the policy, you are responsible for the amount. For example, a policy covering job site injuries will cover the costs of up to $1 million in damages.

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