Start with the policy, then read the changes
An insurance policy is the agreement that explains what the insurer covers, who is insured and what must happen for a claim to qualify. The declarations page near the front is the summary: business name, dates, coverage limits and premium. The premium is the price of the insurance.
The remaining pages explain how that coverage works. An endorsement is a document that changes the policy. It might add a customer as an insured, extend a type of coverage or restrict certain work. An exclusion describes something the policy leaves out. These words matter because two quotes can show the same dollar limit and still cover different jobs.
Ongoing operations means work that is still in progress
An operation is simply the work your business performs. Ongoing operations refers to that work while it is being done. For a remodeler, this could include moving materials through a customer’s house, installing cabinets or leaving equipment in a work area.
Suppose a visitor trips over your extension cord during the job and makes an injury claim. This illustrates an ongoing-operations exposure. A general contractor or property owner may ask to be an additional insured for your ongoing operations because they could also be named in a claim connected to your work. Additional insured means another person or business receives specified protection under your policy.
Completed operations means a loss involving finished work
Completed operations concerns injury or property damage arising from work after it is finished, as the policy defines completion. For example, a connection you installed later leaks and damages a customer’s floor after the system has been put into use.
A customer asking for ongoing and completed operations additional-insured coverage wants protection for claims tied to your work both while the job is underway and after it is completed. Those protections may require different endorsements. Coverage for the customer is a separate question from whether your own business has completed-operations coverage.
This is not a warranty that pays to redo every unsatisfactory job. The cost to correct your defective work and the cost of damage to other property can be treated differently. Keep the contract and policy documents, even after the final invoice is paid.
Per-occurrence and aggregate limits answer different questions
A limit is the most the insurer will pay under a particular part of the policy. The per-occurrence limit is the cap for one covered event. The aggregate is the shared total available for covered claims that count against that aggregate during the applicable policy period, commonly one year.
Think of a policy showing $1 million per occurrence and a $2 million general aggregate. The first number controls how much is available for one event; the second controls the running total for claims using that aggregate. A $2 million aggregate does not turn the one-event limit into $2 million.
| Covered payments | Aggregate remaining |
|---|---|
| Before any claims | $2,000,000 |
| First separate event: $600,000 paid | $1,400,000 |
| Second separate event: $900,000 paid | $500,000 |
Why a customer asks for a per-project aggregate
Without the relevant endorsement, claims from different jobs can use the same general aggregate. A per-project aggregate endorsement can make the specified aggregate apply separately to eligible projects. Your customer wants to reduce the chance that a claim on someone else’s job uses up the protection available for their project.
The endorsement does not automatically raise the amount available for one occurrence, and it may have an overall cap or other restrictions. Ask which projects qualify, whether they must be listed and how completed-operations claims are handled. We can compare the actual endorsement with the wording in the contract.
Primary and noncontributory explains whose insurance responds first
Primary means your coverage is intended to respond first for a covered claim involving the additional insured. Noncontributory means your insurer agrees, under the applicable wording, not to ask that party’s own insurance to share the covered payment.
A property manager may request this because they want your policy to handle a claim connected to your work without drawing on their policy. The necessary endorsement and written-contract conditions must be in place. The phrase on a certificate alone does not add that protection.
A waiver of subrogation concerns recovery after a claim
Subrogation is an insurer’s right to seek repayment from someone responsible for a loss after the insurer pays the claim. A waiver of subrogation limits that recovery right against the person or business specified by the waiver.
For example, a customer may want your insurer to agree not to seek repayment from them after paying certain covered losses involving your work. General liability and workers’ compensation waivers are separate requests. Send the exact requirement before work starts so the correct policy, party and timing can be reviewed.
How occurrence and claims-made policies handle timing
An occurrence policy generally looks to when the covered injury or damage happened. A claim might be reported later, but the date of the injury or damage is central. Reporting duties and the rest of the policy still apply.
A claims-made policy generally also requires the claim to be made, and often reported, during specified dates. Many professional liability policies use this approach. A retroactive date is a boundary for how far back the covered acts may go. Changing insurers can affect that protection, so ask how earlier work and later-reported claims will be handled before replacing coverage.
How to get an unfamiliar requirement explained
Send us the full insurance section of the contract, any requested form numbers, and the policy or quote you want compared. Tell us what the job involves and when you need a response. You do not need to translate the wording first.
We can explain each requirement, identify what is already included and point out changes to request. You can then discuss any requirement the proposed coverage cannot meet with the customer before the job begins.