Insurance Restoration Contractor Insurance

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.

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.

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.

Small operations generating $300K-$700K in revenue typically pay $10,000-$22,000 for GL/WC/Auto. Mid-size insurance restoration contractors at $1M-$3M range from $28,000-$65,000 depending on whether E&O is bundled. Larger operations above $3M should expect $70,000-$150,000, with E&O adding $5,000-$15,000 on top of the base package.