Voluntary Damage to Property of Others is a commercial insurance policy endorsement that extends coverage to the property of others in the care of the insured, away from the insured’s premises. This optional endorsement helps close the coverage gap for contractors working in someones home and is ideal for the handy man or any remodeler. If a contractor has the potential to damage a customers property through the course of their normal work, then this coverage is highly recommended.
This endorsement helps cover damage caused by the insured to a clients property. For example, if a painter damages a nice wood floor with their scaffolding, this coverage would kick in to help with repairs. The coverage also provides benefit regardless of fault. It’s a tool used by contractors to ‘keep the peace’ and protect their reputation.
What happens if you don’t have a voluntary property damage endorsement on your commercial insurance policy?
A typical standard commercial liability policy will only pay out if the insured is found legally liable for damages. So, insurance will not cover damages unless the insured can be proven negligent. Think of the voluntary property damage endorsement as a ‘goodwill’ coverage that helps protect a clients reputation and relationship.
One thing to note, Voluntary Property Damage typically has a much lower limit than general liability. Typical general liability on a commercial policy may be $1m/$2m but through a carrier like Auto-Owners, their Premier Contractor Program only covers up to $5,000 per occurrence or $25,000 aggregate.
Voluntary Property Damage or VPD is just another tool in the insurance tool belt to help contractors grow and keep their customers happy. As always, give me a call or text to get a free no obligation quote on your commercial insurance coverage.
