Premise liability coverage acts much like liability insurance on your home. It is meant to be extra protection for the area outside of the care custody and control of your contractor.


An example would be a shared driveway, boulevard, or any area that is not within a construction fence. If someone were to slip and fall outside of the area you could be liable. This coverage can be added as a standalone policy. An active homeowners or tenants policy can extend to cover the project site. This coverage is different from the General Liability coverage.

Designated Premise Liability Coverage or Owners, Landlords, and Tenants Liability Coverage is an insurance policy that covers liability associated with the Ownership, Maintenance, or Control of insured premises.


The coverage is very important to have if you are a property owner who has hired a General Contractor to do a renovation or build. Premise Liability Insurance covers claims brought forth against the property owner for Incidental Bodily Injury and Property Damage.


Designated Premise Insurance is different from the broader Contractors General Liability Coverage. General Liability will cover the area of the property in which the General Contractor has Care, Custody, and Control. On every property, there will be common areas where the General Contractor does not have control. Examples can be driveways, sidewalks, boulevards, and land outside of the build area.


If an incident occurs within one of these areas the General Contractors General Liability policy will normally not offer coverage. This can leave the property owner liable.


There are several ways to ensure that you are protected. A stand-alone policy can be in place or an extension from an existing policy can offer coverage.