When you work in construction or contracting, every project comes with its own risks. From on-site accidents to design flaws or faulty workmanship, there’s no shortage of ways a simple mistake can turn into a costly claim. That’s where insurance comes in—but not all policies are created equal.
Two of the most important coverages to understand are General Liability and Contractor’s Errors & Omissions (E&O). While they may seem similar, they protect your business in very different ways. At Haughn Insurance, we’re here to help you understand why both might be critical for your operation.
What Is General Liability Insurance?
General Liability insurance protects your business from third-party claims involving bodily injury, property damage, and personal/advertising injury that happen during your operations.
Examples:
- A homeowner trips over your equipment and is injured.
- You accidentally damage a client’s landscaping while working on their property.
- A subcontractor sues you for defamation over a disagreement.
This coverage is a foundational policy for contractors—it’s often required for licensing, contracts, and jobsite access.
What Is Contractor’s Errors & Omissions (E&O) Insurance?
Contractor’s E&O (a form of Professional Liability) covers claims that result from mistakes in your professional services, design work, or faulty workmanship—even if the work is completed.
General Liability excludes most of these claims because it doesn’t cover financial losses tied to errors in your work. That’s where Contractor’s E&O steps in.
Examples:
- You install a roof incorrectly, and months later it leaks, causing interior damage.
- A design-build contractor provides flawed blueprints, leading to expensive delays.
- Your team installs the wrong HVAC system, and it must be replaced at your expense.
Key Differences at a Glance
| Feature | General Liability | Contractor’s E&O |
|---|---|---|
| Bodily injury coverage? | Yes | No |
| Property damage coverage? | Yes | No |
| Covers faulty workmanship? | No | Yes |
| Covers financial loss? | No | Yes |
| Who needs it? | All contractors | Design-build & trade contractors |
Why Contractors Should Carry Both
Relying on General Liability alone could leave gaps in coverage. General Liability won’t cover the cost of repairing or replacing your own faulty work—but Contractor’s E&O will.
Many project owners and general contractors are starting to require E&O coverage in addition to General Liability. If you’re bidding on larger projects or doing design-build work, carrying both is often non-negotiable.
Build Your Coverage with Haughn Insurance
At Haughn Insurance, we understand the unique risks contractors face. Whether you’re a general contractor, subcontractor, or design-build firm, we’ll tailor a protection plan that keeps your business secure from start to finish.
Call us today or visit our Dublin, Ohio office to talk about the right coverage for your business.
