Remedies Generally | Money Judgment | Injunction | Insurance | Penalties for a Frivolous Claim

Insurance Coverage

As mentioned in another section, there are four main types of  insurance that come into play in contract law cases.

1. General Liability Insurance

This covers instances where  an ordinary accident occurs, such as a slip and fall on job site  relative to a construction contract. If, for example, the mail man falls when delivering mail to commercial building under the  partial control of contractors, the contractors have to think about  liability for their own conduct as it relates to the owner’s conduct.

2. Errors and Omissions

Another form of coverage involves errors and omissions. These cover a party’s negligence in failure  to perform adequately. However, there are limitations to this  sort of coverage in the construction and renovation law setting.

As noted in the residential construction section, the Home  Improvement Act requires that contractors carry at least  $50,000 of general liability coverage and $50,0000 of errors and  omissions coverage for each job.

3. Property Owner’s Insurance

The property owner / home  owner may have coverage that exists above and beyond the  above-referenced coverage. Property owner insurance may  provide duplicate or addition coverage beyond the contractor’s  coverage. A close review of the policy must be made.

4. Title Insurance

Title insurance often exists upon the  purchase of a home, in many instances, and it covers the title,  insuring that the title is free from certain encumbrances.  However, there are often limits on coverage, such as an exclusions for any zoning issue, which can be significant relative to new  construction or a substantial modification.

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