Though the roles and responsibilities of general contractors and specialty trade contractors vary from project to project, independent contractors and contracting firms have legal obligations to their clients and their workers in respect to the project undertaken by them.
Liability claims and lawsuits arising from accidents that cause bodily injury and property damage can occur during construction and even after the project has been turned over to the owner.
In the hazardous business of construction, where accidents are common and the risk of financial loss from accidental injury, fire, weather damage, theft and vandalism are high, contractors may find it hard to place insurance or even if they do – limits and the scope of coverage may not be adequate for their business needs.
What is Non-Standard General Contractors Umbrella?
Non-Standard General Contractors Umbrella is an excess liability policy that sits above your primary liability insurance to increase overall limits and broaden protection for large or unexpected losses. It is designed for contracting firms and independent contractors with elevated liability exposures, such as heavy equipment operations, subcontractor management, and work near public property. It commonly extends coverage for commercial auto exposure, equipment coverage gaps, and catastrophic third-party liability claims.
Who needs it
Contractors who handle larger projects, multiple job sites, or potentially hazardous operations typically consider umbrella coverage. This includes general contractors, specialty trade contractors, subcontractors, and construction managers that face operational hazards and spectator or public injury exposures. Smaller specialty operations often pair umbrella protection with dedicated specialty trade products like Non-Standard Specialty Trade Contractors Umbrella Insurance when working as subcontractors on larger builds.
What it typically covers
An umbrella policy usually increases the limits for primary policies and may cover liability gaps not included in standard policies. Typical coverages include higher limits for general liability, expanded commercial auto liability limits, and broader protection for bodily injury and property damage claims. Many contractors also rely on umbrella protection to help cover legal defense costs above the primary policy limit.
Contractors often buy umbrella coverage in tandem with core policies such as Non-Standard General Contractors General Liability and specialized workers’ compensation programs like Non-Standard General Contractors Workers Compensation Insurance to address both liability and employee injury exposures.
Common exclusions or limitations
- Intentional acts and willful misconduct are typically excluded.
- Professional liability (errors & omissions) and pollution may require separate policies or endorsements.
- Some policies limit coverage for employee injury or contractual liabilities unless specifically endorsed.
Factors that influence cost
Underwriting factors include your claims history, payroll and subcontractor costs, the types of projects you perform, the amount of commercial auto exposure, and risk management practices on job sites. Insurers assess operational hazards, equipment values, and prior loss experience to set premium and retentions.
Risk management considerations—such as documented safety programs, written subcontractor agreements, and regular equipment maintenance—can improve insurability and lower excess premiums.
Proof of insurance & compliance
Owners and general contractors often require certificates of insurance showing umbrella limits, additional insured endorsements, and waiver of subrogation where applicable. Keep current policy documents and endorsements available for contract compliance and permit submissions.
How to get a quote
To compare available limits and terms, gather recent loss runs, a summary of operations, payroll and subcontractor information, and vehicle schedules. When you’re ready, you can get a quote to review available options and coverages tailored to your contracting business.
Related Coverages
Frequently Asked Questions
What does an umbrella policy add that my general liability does not?
An umbrella raises the overall liability limits above your primary policy and can cover certain gaps or excess defense costs; it does not replace primary policies but supplements them.
Will an umbrella cover claims involving subcontractors?
Coverage for subcontractor claims depends on policy wording and whether subcontractors are named as additional insureds or covered under your primary policies; verify with your insurer and contracts.
How much umbrella coverage should a contractor carry?
Recommended limits depend on contract requirements, project size, vehicle exposure, and potential catastrophic risks. Discussing your operations with an agent helps determine an appropriate limit.
Still have questions? Talk to a local insurance expert.