At The Contractors Resource Center, we specialize in construction insurance for California contractors—focusing on General Liability, Workers’ Compensation, and Bonds.
We’re proud to be:
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5-star rated on Google
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Active members of NAHB (National Association of Home Builders) and NARI (National Association of Remodelers)
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Serving on the insurance committees of both associations to stay up-to-date on issues that impact contractors
While some policies may look attractive because of lower premiums, it’s crucial to understand the risks of Claims-Made and Manuscript Occurrence policies. Choosing the wrong type of coverage could leave you exposed years down the road.
Understanding the Types of General Liability Policies
1. Full Occurrence (ISO Standard) Policies ✅
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What it is: The industry-standard GL policy following ISO (Insurance Services Office) wording.
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Why ISO matters: ISO wording provides consistency, clarity, and reliability—contractors know exactly what is covered.
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Coverage: Applies to any incident that occurs during the policy period, even if the claim is reported years later.
At The Contractors Resource Center, we always recommend Full Occurrence ISO policies because they provide the broadest protection and peace of mind.
2. Claims-Made Policies ⚠️
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What it is: Coverage only applies if a claim is made while the policy is active.
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Risk: Claims can surface years after the project is finished. A Claims-Made policy could leave you unprotected if a claim arises after your policy ends.
3. Manuscript Occurrence Policies ⚠️
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What it is: Custom wording drafted by the insurer instead of using standard ISO language.
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Risk: May include sunset clauses, prior work exclusions, or hidden limitations. While called “occurrence,” it often does not provide the same broad protection as ISO Full Occurrence policies.
Why Full Occurrence Policies Are Best for Contractors
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Long-Term Protection: Claims can arise years after completing work. Full Occurrence policies cover you well into the future.
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Peace of Mind: Know exactly what is covered—no hidden exclusions or time limits.
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Consistency: ISO wording ensures standardization, eliminating guesswork.
Real-World Example
A contractor installs a new roof. Two years later, a leak causes water damage.
| Policy Type | Coverage Outcome |
|---|---|
| Full Occurrence ISO | Covered, even years later |
| Claims-Made | May be denied if the policy is no longer active |
| Manuscript Occurrence | Depends on custom wording; prior work may be excluded |
Key Takeaway: The cheapest quote is not always the best quote. Protecting your business means choosing coverage that will hold up when you need it most.
Why Choose The Contractors Resource Center
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Full Occurrence ISO experts: We ensure your coverage protects you long-term.
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Industry expertise: Active in NAHB and NARI insurance committees with over 20 years of Construction Insurance Expertise.
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Trusted by contractors: 5-star reviews on Google.
Bottom line: Always confirm your General Liability policy is a Full Occurrence ISO policy, not a Claims-Made or Manuscript Occurrence policy. Your business—and your peace of mind—depends on it.