Additional Insured
An endorsement that extends your liability coverage to another party, such as a client, general contractor, or property owner, for claims arising from your work. Contracts commonly require it, often on a completed-operations basis. The endorsement, not the certificate, is what provides the coverage.
Certificate of Insurance (COI)
A document that summarizes your coverage as of the date it is issued. It is evidence that a policy existed, but it grants the holder no coverage by itself and can be out of date the next day.
Completed Operations
Coverage for bodily injury or property damage arising from your finished work after you have left the jobsite. For contractors it is often the largest and longest-tailed exposure, and contracts frequently require completed-operations additional insured status.
Waiver of Subrogation
An endorsement under which your insurer agrees not to pursue recovery from another party, such as a client or GC, after paying a claim. Contracts often require it alongside additional insured status.
Primary and Noncontributory
Contract wording requiring your policy to respond first and not seek contribution from the other party's policy. It is provided through an endorsement and commonly requested with additional insured status.
Per-Project Aggregate
An endorsement that gives each project its own aggregate limit, so claims on one job do not erode the limit available to others. Many owners and general contractors require it.
Action-Over Exclusion
An exclusion that bars coverage for employee injury claims brought against you through a third party, such as a general contractor. It can be a significant gap on construction liability policies.
Subcontractor Exclusion
A general liability provision that limits or excludes coverage for work performed by subcontractors, or conditions it on the sub carrying its own insurance. It makes verifying subcontractor coverage essential.
EIFS Exclusion
An exclusion for claims related to exterior insulation and finish systems (synthetic stucco), which have a history of moisture and defect claims. Relevant to certain exterior, stucco, and adjacent trades.
XCU
Explosion, collapse, and underground property damage. Some general liability policies exclude XCU, which matters for excavation, grading, and foundation work that disturbs the ground.
Inland Marine
Coverage for movable and off-premises property, tools, equipment, and materials, in transit and at jobsites, where standard property insurance, tied to a fixed location, does not reach.
Hired and Non-Owned Auto (HNOA)
Coverage for your business's liability when employees drive rented or personal vehicles for work. Personal auto policies exclude business use, so this fills a common contractor gap.
License Bond
A compliance bond required by many states and municipalities to be licensed or pull permits. It guarantees the public and the agency, not you, that you will operate within the rules.
Surety Bond
A guarantee on a contract, bid, performance, or payment, that you will meet an obligation to a project owner. It is not insurance for you; if the surety pays a claim, you repay the surety.
Builders Risk
Coverage for property under construction against causes like fire, wind, and theft, usually for the duration of the project. Often required by the lender or project owner.
Experience Modifier
A factor in workers compensation pricing that compares your claims history to similar businesses. Below one lowers premium; above one raises it. A strong safety record improves it over time.
