The nation's two million "artisan" contractors (electricians, plumbers, lawn care providers, heating and air conditioning installation and repair services, etc.) can easily find themselves caught in a squeeze that exposes them to serious financial risk.
The stagnant economy is pressuring them to take on more and more work while cutting costs - a recipe for mistakes that's leading more and more dissatisfied customers to demand restitution, often through the courts. Such a mishap can cost a contractor thousands of dollars in materials, labor, and lost time (not to mention the loss of potential future income from the customer, damage to the professional reputation of the business, etc.).
Chances are that the artisan's General Liability policy, which pays for damage to property, won't pick up the tab: Coverage usually doesn't apply for "wrongful acts" by the policyholder.
General contractors and other major players in the construction industry can protect themselves against this exposure by buying Contractors Errors & Omissions (E&O) insurance. However, this coverage is costly and has been unavailable to most types of artisans.
Not to worry: More and more insurance companies are providing E&O policies tailored to the specific needs of artisanal contractors (ranging from carpenters to septic tank cleaners).
This type of risk protection in today's "litigation culture" can make life easier for artisans as a resurgent economy and population growth triggers a growing demand for their services.
If you'd like more information on Contractors E&O, please feel free to get in touch with our insurance professionals.