More than 80% of homes in the U.S. are over 20 years old, and spending on commercial renovations is expected to jump by 67% by 2030. This surge shows just how much people and businesses are focused on fixing up and reusing existing spaces instead of building new ones. Renovations can bring old buildings back to life, often costing less than new construction.
But updates to buildings come with risks. Accidents on construction sites happen, sometimes causing damage to property. Whether it’s a broken pipe, damaged wall, or other mishaps, figuring out who pays for the damage can be tricky.
John Hughes, a construction underwriter at Central Insurance, explains that usually, the contractor who causes the damage is responsible for paying for it. But when subcontractors step in, things get more complicated. That’s why general contractors need solid contracts with subcontractors and must make sure they have the right insurance. It’s not enough just to see if subcontractors have insurance—they need to confirm the coverage is current and covers the work being done. Contracts should also require notice if the subcontractor’s insurance is canceled so no one gets caught off guard.
Insurance plays a big role in handling these situations. Contractors should have general liability insurance that covers all work, including that done by subcontractors. It helps if subcontractors add the main contractor as an Additional Insured on their policies and that the insurance is "Primary and Non-Contributory." This means coverage comes first without causing disputes over who pays. Some contractors also carry Errors & Omissions insurance, which covers mistakes or faulty work.
Owners of renovation projects should also protect themselves with a Builder’s Risk policy. This insurance covers property damage while work is still underway, something regular property insurance often excludes.
When accidental damage happens, it’s important to act fast. Both contractors and owners should tell their insurance agents and document everything right away with photos and detailed records. This helps with submitting claims and sorting out who’s responsible.
Central Insurance focuses on helping contractors with the right coverage and support. Their team understands construction risks and works to close coverage gaps before they become problems. If damage occurs, they respond quickly to keep projects moving forward.
For contractors and project owners, the message is clear: have the right contracts, check your insurance carefully, and be ready with plans in case the unexpected happens. Doing so can keep renovation projects on track and avoid costly surprises.