Is it possible to obtain umbrella coverage for a single project?
My commercial building has stringent requirements for contractors working on site. The project I need completed is relatively minor and likely won’t attract contractors who typically carry $3 million in umbrella coverage alongside their General Liability Insurance. Is there any way for someone to purchase umbrella coverage specifically for my short 1-2 day project and then pass the cost on to me?
It’s understandable that finding a contractor who meets such stringent insurance requirements can be challenging, especially for a small project. While it’s not common for contractors to purchase umbrella insurance specifically for a single project, there are a few options you might consider:
Discuss Short-Term Coverage with Contractors: Some contractors may be willing to explore short-term umbrella or additional coverage options. They can contact their insurance provider to see if they can temporarily increase their coverage for your project.
Project-Specific Insurance Policies: You might look into obtaining a one-time project-specific insurance policy. Some insurance companies offer event or project insurance that can cover additional risks for a specified duration. This may add to the overall cost, but it could satisfy the requirements.
Consult with Insurance Brokers: Reach out to an insurance broker who specializes in commercial insurance. They can help you find coverage options tailored for your needs and possibly identify contractors who already meet your requirements.
Negotiate Requirements: If you have a good relationship with the building management, consider discussing potentially relaxing the insurance requirements for this specific, small project. They might be amenable to a solution that still protects the building.
Bonding Options: In some cases, a contractor who is bonded may suffice in lieu of a high umbrella limit. Check if your building has any flexibility here.
Ultimately, clear communication with both the contractor and building management will be key to finding an acceptable solution. Good luck with your project!