Exclusions In Construction Insurance Policies

Construction general liability policies are expensive in today's market.  In response to this, insurance underwriters have attempted to make policies less expensive.  Insurance companies do this by adding exclusions to policies which limit the instances where a carrier may have to pay.

How exclusions make insurance less expensive

So for example, projects for new residential construction result in far more claims than residential remodel projects.  Therefore, if a contractor only performs residential remodels, adding a new residential construction exclusion to the policy will likely make the policy much less expensive and make sense for that contractor.  In a perfect world, this is picked up when the contractor fills out an application with the broker during the re-insurance process.