Insurance Restoration Contractor Insurance
Insurance restoration contractors operate at the intersection of construction and insurance claims, managing the process of restoring properties using homeowner policy proceeds. Underwriters view this class differently from standard roofers because the claims-navigation component introduces professional liability dimensions beyond typical construction risk.
Risks Specific to This Sub-Trade
Errors in scope documentation and supplement preparation can result in professional liability claims from homeowners who receive less than expected from their carrier. The contractor often becomes a de facto public adjuster without proper licensing, exposing them to regulatory enforcement. Completed operations exposure is heightened because insurance-funded repairs carry implicit warranties that the work restores the property to pre-loss condition. Disputes over the gap between insurance proceeds and actual repair costs generate breach of contract and consumer protection claims.
Coverages This Sub-Trade Needs
Carriers That Write This Sub-Trade
This class sits in the E&S market for most accounts. Carriers like Kinsale, Colony Specialty, and Imperium write insurance restoration contractors but scrutinize claims-handling practices. Some carriers require the contractor to maintain a separate E&O policy or demonstrate that they do not perform public adjusting services. Accounts that can clearly separate construction services from claims advocacy fare better in underwriting.
What Disqualifies an Account
Performing unlicensed public adjusting activities is a hard stop across all carriers. Contractors with state insurance department complaints or cease-and-desist orders face automatic declination. Revenue heavily concentrated in AOB-reform states (Florida, for example) with ongoing AOB litigation in the loss runs makes placement nearly impossible.
Frequently Asked Questions
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