How to Avoid the CG2294 Insurance Exclusion That Leaves Homebuilders Exposed

The Hidden Insurance Exclusion That Could Deny Your Construction Claim

Most homebuilders assume their insurance will protect them if a subcontractor makes a costly mistake. But that’s not always true. There’s a little-known clause called CG2294—and it’s quietly sabotaging builders across the country.

What Is CG2294 and Why Does It Matter for Homebuilders?

Imagine this: A trusted plumber floods a home, causing $200,000 in damage. You file a claim. But the carrier denies it because your general liability policy includes CG2294—an exclusion that removes coverage for subcontractor negligence.

That means you're paying the bill, not your insurer.

How Common Is the CG2294 Exclusion in Builder Insurance Policies?

Extremely. Many builders don’t even know it exists—until they’re already facing six-figure damages, legal bills, and a damaged reputation.

Worse? Most insurance agents don’t fully understand it either.

Why General Insurance Agents Miss Critical Construction Insurance Exclusions

If your agent doesn't specialize in construction, they may not catch policy language like CG2294, or know how to negotiate to remove it.

As one construction expert put it:
"If you’re explaining what a cracked shower pan does to your agent, you’ve already lost."

How to Eliminate CG2294 and Strengthen Construction Insurance Coverage

• Review your current policy line by line
• Ask your agent specifically about CG2294
• Work with a specialist who understands construction risk management

Protect Your Profits by Partnering with a Construction Insurance Specialist

At Maverick, we don’t just sell policies—we know what’s hiding in them. Our advisors understand builder-specific exposures and how to structure policies that actually protect your business.