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    6 Claims Scenarios Every Contractor Should Know

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    Construction sites come with their fair share of hazards. Here are six common insurance claims contractors often face and how your policy can help protect you from the unexpected.

    As a trades professional or contractor, you run a small business. And, as most business owners will tell you, accidents happen – especially in an industry like construction. From bodily injuries, property damages, or theft of your expensive tools and equipment, it’s important to understand ways your coverage can protect you against unexpected claims or lawsuits.

    In this article, we outline some of the most common scenarios that can lead to making a claim against contractors insurance. Read on to learn more and find out what insurance companies will cover when you have the right policy in place.

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    6 Common Claims Against Contractors Insurance

    Below are six scenarios in which the unexpected could lead to you filing a claim to cover the damages.

    Claims Scenario 1: Job Site Injury

    A homeowner hires a contractor to renovate his kitchen. During the project, the owner tours the construction area and a ladder falls, knocking him to the ground. The homeowner’s arm is broken and he sues the contractor.

    Fortunately, the contractor is able to cover the cost of any medical expenses and legal fees through his insurance.

    Claims Scenario 2: Stolen Tools and Equipment

    During a construction project, a contractor leaves her tools at the job site over the weekend. When she returns the next week, she discovers that nearly $5,000 worth of her tools and equipment have been stolen.

    Since she has an insurance policy, these expenses are covered and her business operations are able to continue uninterrupted.

    Claims Scenario 3: Property Damages

    A trades professional is working on a construction site when he accidentally hammers a nail into a plumbing line. Not only does this cause water damage to the site but it also creates additional work for the project as a whole. The trades professional is sued for damages.

    With his insurance policy, he is covered for this potentially costly mistake.

    Claims Scenario 4: Professional Negligence

    An electrician completes a project for a residential building. Soon after, an electrical fire starts, damaging many of the building’s units. Since the fire can be traced back to the electrician’s work, the property owner sues the electrician.

    Her insurance is able to help her cover the expenses of this claim which otherwise would have set her back thousands of dollars.

    Claims Scenario 5: Property Damages

    A plumber completes maintenance work on a washing machine. He accidentally forgets to ensure that he’s secured all lines before he leaves the job. The next time the client runs her machine, it floods her laundry room.

    The client sues the plumber but luckily he is able to cover the cost of the damages through his trades and contractors insurance.

    Claims Scenario 6: Faulty Work

    A client hires a mason to update the exterior of her home. Despite having completed this type of project many times in the past, the facade detaches from the house. As a result the client is extremely unhappy and sues the mason.

    Fortunately, the mason is able to cover the cost of the repair expenses and legal fees through his insurance.

    Related read: 10 Questions to Ask a Contractor

    Previous Insurance Claims Articles

    Interested to learn about other common claims scenarios? Check out APOLLO Magazine’s previous articles in this series:

    Protect Your Business with Trades and Contractors Insurance

    APOLLO’s Trades and Contractors insurance offers a package policy to help you find coverage that suits your unique construction business needs. Key features include:

    • Commercial General Liability insurance up to $5M

    • Tools and Equipment floater up to $20K

    • Installation floater up to $20K

    • Optional Rip and Tear endorsement up to $10K

    • Monthly payment options from a credit or debit card

    Start your free online application now, and you could be insured in the next 15 minutes.

    APOLLO Has You Covered

    Get the protection you need in minutes with custom Contractors Insurance from APOLLO.

    Learn More

    Originally published July 11, 2022, updated August 25, 2023

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