Does general liability cover restoration work? It covers part of it, but a standard general liability policy leaves big gaps for a restoration contractor, and they are exactly the gaps restoration claims fall into. Pollution, mold, and damage to the property in your care are central to restoration and commonly excluded or limited by GL. Here is what general liability does and does not do, and what actually closes the gaps.
What general liability does cover
General liability is the base of any contractor program. It covers third-party bodily injury and property damage arising from your operations, a visitor hurt on a job, damage to property you do not control. That is real and necessary coverage, and every restoration contractor needs it. The problem is not what GL covers. It is the assumption that it covers everything restoration involves.
The three gaps restoration hits
First, pollution. Contaminated water, soot, sewage, and biological materials can be treated as pollutants, and GL’s broad pollution exclusion can leave related claims uncovered. Second, mold. Most GL policies exclude or sharply sublimit mold, which is a common restoration exposure. Third, care, custody, and control. GL commonly excludes damage to the property in your care, which for restoration is the building you are drying and the contents you store. Those three, plus professional exposure, are where restoration claims land.
The certificate will not warn you
A certificate of insurance summarizes limits as of its date. It does not show exclusions. A restoration policy can carry a clean-looking certificate while excluding the pollution, mold, or care-custody-control exposure at the center of your work. The only way to know is to read the form and its endorsements against what you actually do.
What closes the gaps
The restoration-specific coverages do. Contractors pollution liability addresses the environmental and contamination exposure. Mold coverage handles mold where GL excludes it. Care, custody, and control covers the customer property in your hands. Professional liability covers allegations of faulty work. Together with GL, they make a restoration program rather than a generic contractor policy.
Questions to ask your advisor
- Does my general liability exclude pollution, and does that apply to my losses?
- Is mold covered or excluded on my current policy?
- Is damage to the property I work on and store covered?
- Do I carry professional liability for faulty-work allegations?
- Has anyone read my policy against the restoration I actually do?
General liability is the floor of a restoration program, not the ceiling. It handles accidents; the restoration-specific coverages handle the pollution, mold, care-custody-control, and professional exposures that make restoration different. Knowing the difference, before a claim, is what keeps a clean-looking certificate from hiding a gap in your core work.