General Liability Insurance:Your Work vs. Care, Custody, and Control Coverage

Running a pressure washing business means focusing on the job in front of you, not getting buried in insurance language. Still, having the right coverage plays an important role in protecting your business. For pressure washing contractors, the most common starting point is general liability insurance. This is the most widely purchased type of coverage, but it is also one of the most misunderstood. Many contractors assume they are fully protected once they purchase general liability insurance, but the details of that policy can determine whether a claim is covered or denied.

In simple terms, general liability insurance is designed to protect against claims involving third party bodily injury or property damage. However, that protection is not unlimited. Over the years working with pressure washing contractors, we have seen many claims submitted to insurance carriers. Some have been covered, while others have been denied; more often than not, the denied claims come down to one specific exclusion that exists in every standard general liability policy. This exclusion has become a frequent topic of discussion in many pressure washing Facebook and Reddit groups, and for good reason.

The exclusion is commonly referred to as the “your work” exclusion, and it appears within the “damage to property” subsection of the exclusions in the business liability section of the policy. The exclusion states:

"This insurance does not apply to: Damage to Property.

"Property damage" to:

• Personal property in the care, custody or control of the insured;

• That particular part of real property on which you or any contractor or subcontractor working directly or indirectly on your behalf is preforming operations, if the "property damage" arises out of those operations; or

• That particular part of any property that must be restored, repaired or replaces because your work was incorrectly performed on it."

To simplify this language, the exclusion essentially means that if you damage the specific part of the property you were working on, the policy may not provide coverage. Since insurance is not intended to guarantee the quality of your work, damage that results from incorrectly performing the job is often excluded. For example, if you are cleaning a driveway and accidentally etch the concrete with too much pressure, the claim would likely fall under the “your work” exclusion. Because the driveway itself was the part of the property you were working on and it now needs to be repaired or replaced due to incorrect performance of the work, the policy would typically not respond.

Recently, we have noticed more insurance carriers advertising pressure washing policies that include $5,000 of “customer property protection.” At first glance, this may sound like an attractive feature, but it is important to look closely at what the carrier actually means by that phrase. In many cases, what they are offering is a limited form of care, custody, and control coverage.

Care, custody, and control coverage can be helpful in certain situations, but it would not apply to the driveway etching example mentioned earlier. This type of coverage is designed to protect you when you are working on personal property that has been entrusted to you for cleaning or servicing. Examples of personal property include outdoor furniture, trash bins, outdoor appliances, rugs, boats, and construction vehicles. This coverage can be especially useful for fleet washers or contractors who frequently clean outdoor accessories and equipment. However, it is less helpful for contractors who primarily wash buildings or concrete. If you receive a quote that advertises customer property protection, there is a good chance that it is referring only to care, custody, and control coverage.

There are, however, some insurance carriers that offer an additional endorsement that extends coverage beyond the personal property covered in your care, custody, and control. Thisis often referred to as a “your work” buy back or a property damage extension endorsement. This endorsement typically adds a sublimit of coverage, often somewhere between $25,000 and $100,000, that can apply to property damage claims caused by your work. For example, if you etched a driveway because the concrete was recently poured or too much pressure was used, the policy could respond up to the specified sublimit.

Before purchasing a general liability policy, it is important to consider what type of coverage actually makes sense for the work your business performs. The goal is not to be pressured into buying coverage you do not need, but it is equally important to understand where the gaps in your protection might be. A policy that looks similar on the surface can behave very differently when a claim occurs.

If you ever have questions about what your policy covers, do not hesitate to ask. We are always happy to review policies, confirm coverages, and compare quotes so that you know exactly what protection you are getting.

Executive Choice Insurance Solutions is a commercial insurance agency that specializes in protecting contractors and service businesses across the country. We help business owners understand their coverage options so they can make informed decisions about protecting their work and their livelihood.

Website: https://executivechoiceins.com/