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Contractors Guard Construction Defect Program

Construction defect claims can be among the most costly and time-consuming exposures contractors face. The Contractors Guard Construction Defect Program provides a proactive, statute-driven solution that helps mitigate risks before they escalate into formal claims. 

By leveraging state-specific "Right to Repair" statutes, this program empowers contractors to resolve alleged defects quickly, protecting profitability, preserving insurance eligibility, and reducing long-term costs. 

As a wholesale broker and MGA, Novatae delivers exclusive access to A-rated carriers and tailored coverage enhancements that help retail brokers secure efficient, compliant, and competitive protection for their contractor clients.

PROGRAM HIGHLIGHTS
  • State-Statute Integration: Uses "Right to Repair" laws that allow contractors to address alleged defects before claims arise.
  • CD Legal Coverage: Includes attorney fees and legal costs associated with mandatory filings and documentation. 
  • Proactive Claim Prevention: Helps minimize loss ratio impact to maintain affordable future premiums.
  • All-Inclusive Premium: Taxes and fees are included in the Contractors Guard quote with no hidden costs.
  • Streamlined Underwriting: Simple process built for efficiency and broker ease of placement.
POTENTIAL ENHANCEMENTS
  • Blanket coverage forms automatically included
  • Coverage for subcontractor work performed on behalf of the insured
  • Blanket Additional Insured (AI) at no cost
  • Expansion of tract home limitation
  • Subcontractor compliance monitoring
  • Removal of subsidence exclusion
  • Warranty review and recommendations
  • Expansion of condo-townhome work limitation
  • Removal of height limitation
Additional Coverages Available
  • General Liability
  • Property Insurance
  • Workers' Compensation
  • Excess Liability
  • Equipment Breakdown
  • Pollution Liability
ADDITIONAL BENEFITS
  • Program Expertise: Backed by a team with deep understanding of construction exposures and defect litigation.
AVAILABILITY

The Contractors Guard Construction Defect Program is available in states with active Right to Repair statutes. As of February 2025, Right to Repair legislation has been introduced in all 50 states, with 24 states currently having such laws in place. 

All accounts are subject to underwriter review and program terms and conditions. 

FAQs for Contractors Guard Construction Defect Program

What is the Contractors Guard Construction Defect Program?

It's a specialized solution designed to help contractors manage and prevent construction defect claims by leveraging state-specific "Right to Repair" statutes. 

Who benefits from this program?

Residential and commercial contractors, developers, and construction firms operating in states with "Right to Repair" laws.

How does it help control insurance costs?

By addressing potential defects before they become claims, contractors reduce loss ratios, helping maintain lower future premiums and broader market access. 

What additional coverages can be combined with the program?

Contractors can bundle General Liability, Workers' Compensation, Property, and other lines for comprehensive protection. 

How does Novatae support retail brokers?

Novatae provides retail partners with access to exclusive markets, in-house underwriting expertise, and a streamlined process for quoting and placement. 

Get A Quote

Why Partner with Novatae?

  • Specialized construction and defect coverage expertise
  • Access to A-rated carriers and exclusive program features
  • Proven success in managing high-exposure contractor risks
  • Comprehensive support for retail brokers from quote to claim
  • Commitment to delivering competitive, compliant, and client-centered solutions

Novatae's Contractors Guard Construction Defect Program helps retail brokers deliver proactive, compliant protection that reduces claims and strengthens contractor clients' long-term insurability.