Insurance for ADU Specialists
Coverage for firms that design and build accessory dwelling units: backyard cottages, garage conversions, junior ADUs and prefab units.
ADU work mixes design, permitting and construction on a small lot next to an occupied home. We look at which parts of that work you do yourself before recommending anything.
How Risk Shows Up in ADU Work
Design and permitting
Setbacks, height limits and utility sizing all go through local review. A plan that fails inspection can mean redesign and delay claims.
Building next to an occupied home
Crews work steps away from the owner’s family, pets and property. Damage to the main house is a common source of claims.
Utility tie-ins
New sewer, water and electrical connections to the main service can affect the existing home, sometimes long after the job closes.
Prefab and modular units
Delivery, craning and foundation fit add their own exposures, and it matters who is responsible for each step.
The Stack Most ADU Specialists Carry.
Design and build under one contract usually needs both kinds of liability coverage.
Hover a layer to see what it covers. Every firm is different, so treat this as a starting point.
Carriers Don’t Always Understand What You Do.
Contractors who also design or consult carry a professional exposure that a standard contractor policy often excludes.
When the work is misread
- Design and consulting work excluded on a contractor’s general liability policy
- Design-build work with no professional coverage
- Additional insured and waiver wording that does not match the contract
- Subcontractor requirements left unchecked
How we submit your firm
- Your design and consulting work described separately from building
- Contractors professional liability where it fits
- Certificates and endorsements matched to each contract
- Subcontractor requirements reviewed with you
Design-Build Needs Both Kinds of Coverage
A contractor’s general liability policy often excludes professional design work, so the design side may need its own coverage.
We check those against your policies before the contract is signed.
Questions We Hear From ADU Specialists.
Contractors ask about certificate wording from general contractors, design work under build contracts, and bonds for public jobs.
Answers are general. Your policy and your contract always control.
Ask yours on a 15-minute callThe GC wants additional insured for ongoing and completed operations.
Very common. The completed operations part matters because claims often come after the job. Many general liability policies include blanket wording when a written contract requires it. We check your endorsements before the certificate goes out.
We do some design under our build contracts. Is that covered?
General liability usually excludes professional services. Contractors professional liability covers design and design-assist work you do or subcontract.
A contractor wants workers' comp even though I have no employees.
This is common when you do site work for a builder. Many contractors will not accept an owner-only exemption. A policy that covers you as the owner, with a waiver of subrogation if the contract asks for one, usually solves it. State funds and private carriers differ on what they can add, so we compare both.
The public job needs a bond.
Bid, performance and payment bonds are underwritten on your finances and experience. Start early, because the first bond takes the longest.
Straight Answers
Not sure how your firm was classified?
Send us your current policy or application. We’ll tell you how your work reads to an underwriter.
Review My CoverageTell Us About Your Firm. We’ll Tell You What We See.
Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.