Contracting companies, general contractors, and subcontractors rely on Products Liability Insurance to protect against claims arising from products supplied or used during construction. This coverage helps guard against third-party bodily injury or property damage caused by defective materials or components:
Whether included in a Commercial General Liability (CGL) policy or purchased as a stand-alone policy, products liability insurance is essential for defending against accidental injury or property damage linked to actual or alleged product defects. This type of insurance is especially important in the construction industry, where many parties contribute materials and components to a finished structure.
Non-Standard General Contractors Products Liability Insurance offers expanded coverage options and higher limits. It is designed to meet the needs of contractors who may not qualify for standard market policies due to past claims, high-risk operations, or other underwriting concerns. This policy type can be critical in managing your exposure to claims related to products and completed work.
What is Non-Standard General Contractors Products Liability?
Non-Standard General Contractors Products Liability Insurance is specialized coverage for contractors who face higher-than-average risk or who do not qualify for standard market policies. It helps cover legal costs, settlements, or judgments resulting from claims of bodily injury or property damage caused by products you used, supplied, or installed during construction or after project completion.
Who Needs It
This coverage is especially important for:
- General contractors with prior claims or gaps in coverage
- Subcontractors supplying or installing materials
- Builders working on complex or high-risk projects
- Contractors operating in states with strict liability laws
What It Typically Covers
Coverage generally includes:
- Third-party bodily injury caused by a faulty or defective product
- Property damage arising from installed or supplied materials
- Completed operations claims that arise after the project is finished
- Legal defense costs, subject to policy terms
Common Exclusions and Limitations
Like most insurance policies, this coverage has limitations. Common exclusions may include:
- Intentional acts or fraud
- Damage to your own work or property
- Contractual liability beyond standard construction agreements
- Work performed outside of the policy’s effective dates or covered territory
Factors That Influence Cost
Premiums for Non-Standard Products Liability vary based on several factors:
- Type and scope of construction work
- Claims history and risk profile
- Annual revenue and payroll
- Geographic location and project types
- Desired policy limits and deductibles
Proof of Insurance and Compliance
Clients, lenders, and project owners often require proof of products liability coverage before awarding contracts. A certificate of insurance (COI) can demonstrate compliance, but requirements vary by state, industry, and project type. Always confirm what documents are needed for your specific situation.
How to Get a Quote
Getting covered starts with a tailored quote that reflects your business's specific risks and needs. Request a Non-Standard General Contractors Products Liability quote today to explore your options.
Related Coverages
Frequently Asked Questions
What is the difference between standard and non-standard products liability insurance?
Standard policies are available to businesses with low to moderate risk and clean claims history. Non-standard policies cater to higher-risk contractors or those with prior claims.
Does this insurance cover subcontractors’ work?
It may, depending on the policy terms. Some policies include coverage for subcontractor work, while others require separate endorsements.
Is products liability included in general liability insurance?
Yes, products and completed operations coverage is often part of a Commercial General Liability policy, but non-standard options may offer broader terms or higher limits.
Do I need this coverage if I only install, not manufacture, products?
Yes. Even if you don’t manufacture materials, you can still be held liable for property damage or injury caused by the products you install or supply.
Can I buy this insurance for one project only?
Some insurers may offer project-specific policies, but many require annual policies. Talk to a licensed agent to explore your options.
Still have questions? Talk to a local insurance expert.