Plumbers, electricians and other small contractors are being squeezed by changing expectations and a difficult economy. Customers are more demanding and quick to claim negligence when they aren't satisfied with the results of the work. For plumbers, painters, finish carpenters, heating contractors and other artisan-type contractors, a simple complaint can easily escalate into a financial dispute they can't afford. 

Read related: "Project Losses a Major Consideration in Contractor Coverage."

Sometimes a misunderstanding or a lack of communication can lead to a problem. When a small contractor makes a mistake or a misjudgment that results in a loss, he often must spend the time and his own money to fix the work. A typical errors and omissions claim can cost $5,000 or more, a significant cost for an uninsured small contractor. With more than 2 million artisan contractors in the U.S., it happens every day on jobs like these. 

• Carpet installer: A flooring contractor picks up the wrong carpet at the dealer and mistakenly installs it in a customer's home. The installer has to remove the incorrect carpet and replace it with the correct product. Total contractor loss: $3,000. 
• HVAC contractor: When installing a new cooling unit on the roof of a commercial building, a heating, ventilation and cooling contractor fails to properly complete the foundation support. The unit breaks through the roof, destroys the equipment and causes significant damage to the building and personal property. Although the property damage is covered under the contractor's general liability coverage, the contractor's uncovered errors and omissions loss is $25,000. 
• Fence erection: A fencing contractor misreads the site plan while installing a fence. As a result, the fence is installed significantly over the property line. The fence has to be removed and reinstalled. Total contractor loss: $35,000. 
• Lawn care service: A lawn care specialist applies the wrong chemical to the lawns at a corporate office park. Subsequently, all the turf dies, needs to be removed, and replaced with new sod. Total contractor loss: $17,000. 
• Appliance installer: An appliance installer incorrectly wires a new 220-volt receptacle, which causes a new commercial-quality oven to malfunction. The oven is damaged and a new unit has to be installed. Total contractor loss: $6,750. 

In a competitive market and difficult economy, small contractors are pressured to do more jobs within narrower margins, exposing them to costly errors in their work. Yet most general liability forms exclude coverage for "your work," or "your product," or "impaired property," when applied to wrongful acts related to contractor services.