Project Specific Insurance Policies

Although a practice policy is important, many insureds need certain lines of coverage and limits for a project. A project specific policy addresses the specific requirements needed to secure work on a project and provides coverage for the exposures a contractor may encounter during it. The premium is typically based on job details and duration.

Project Specific Insurance Policy Details

Most contractors purchase practice policies that provide coverage for all of the work that they do within a given year (or multiple years if they have multi-year practice policies). There are a number of reasons why a contractor would want to purchase a project-specific policy:

• They may be required to have higher limits than what their current practice policy provides
• They may be working on a “higher risk” project and they do not want to take the risk of potentially exhausting the limits in their practice policy
• They may be working on a project that has certain risks that are not covered by their current practice policy—asbestos, lead, reputational damage, etc.)

This policy typically replaces all of the coverage that the contractor has in their practice policy and becomes primary as respects the covered project. Very often, there are exclusions in contractor practice policies for work performed on projects that are covered on a project-specific basis. In some instances, practice policies may be endorsed to sit excess of a project policy.