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As A General Contractor This Was REALLY HELPFUL!

 
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Old 06-20-2019, 02:55 PM   #1
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As A General Contractor This Was REALLY HELPFUL!


What's the right insurance policy for a General Contractor?
A general contractor is responsible for managing and coordinating a project and is in charge of supervising the entireness of the project, may it be commercial or residential. While managing large home improvement and remodeling projects, a general contractor can always run into liability issues if the correct insurance policy is not purchased.
If you are a general contractor and own your own business, you alone must make sure thigs are working on schedule. This means keeping employees productive so that the contract is on schedule, which is not the simplest task. Whether someone gets injured on the job due to an accident or a client is unhappy with the quality of work, with construction projects, there’s a lot that can go wrong
Commercial business insurance protects your general contracting business assets and investments against the many uncertainties general contractors face throughout the course of a project and beyond.
Insurance is highly essential to have for businesses, including contractors. This is considering the reality that unfortunate events do happen and you need to always be prepared. But as a contractor, it could be confusing deciding on the right type of insurance for you. The insurance can change depending on the state and the profession. For example, a roofer can work in one state without license, but a license can be required in another state.

Types of insurance for general contractors

Commercial General Liability (CGL): This policy is the base coverage that connects to all the other types of coverages that together comprise your general contractor insurance portfolio. It provides coverage for:
Premises. Protects you from a third party who alleges bodily harm, injury, or property damage on job site or related sites.
Products and services. Protects you from liability claims that arise after the project has been completed.
Independent contractors. Protects you from liability arising from subcontractors or suppliers.
Whether it is provided alone or in a package, general liability insurance is a major coverage a contractor must consider. You will find this policy useful if you need to deal with lawsuits or accidents resulting from projects you worked on at any time.
Professional Liability: Also known as Errors and Omissions (E&O) coverage, this type of policy provides protection if an employee commits an error that affects your client negatively, who will sue you afterwards. When choosing a Professional Liability policy, you will want to identify which liability exposures are most applicable to the type of environments in which you work.
Commercial Auto Insurance: You will also need insurance for the vehicles used in your business opertions. Any personal auto insurance you might have will not cover you in the event of an accident. Different states have their minimum coverage requirements, so you need to check what your state laws stipulate. If your employees do use their own vehicles for work, you may want to add employer’s non-owned car liability policy. Policies should be written to cover all vehicles subject to exposure, not just those owned by you.
Excess Liability: This insurance is mainly intended to make up for catastrophic losses, this type of insurance extends the coverage included in your basic policies, to provide protection beyond the stated limits. However, excess liability can only be applied to one underlying policy; for example, if you have General Commercial Liability insurance, you can’t use your excess liability coverage for any other policy.
Umbrella Insurance: Similar to Excess Liability, Umbrella policies provide extended coverage to supplement your basic policies. Unlike excess liability, umbrella can be applied to multipole underlying liability.
Worker’s Comp Insurance: This policy will cover the medical bills and related expenses, such as lost wages or disability, should your employees sustain an injury on the job.
IMPORTANT: There are businesses with no employees that are required by state law to carry workers' compensation insurance. Therefore, you can purchase “ghost policy”. A ghost policy is a specific type of workers' compensation insurance that does not directly cover any individual workers. The ghost policy provides potential clients with documented proof of insurance, while not actually offering any real insurance protection.
Inland Marine: This policy will cover your equipment and tools when you are traveling between project sites. Items include materials, supplies, and tools that are used in projects on a longer-term basis.

What is the right type of insurance for my business?
The insurance policies mentioned above are just few of the ones available to contractors. To choose the best type of insurance for you, endeavor to consider the following:
-The carriers rating
-The type of exclusions
-The additional coverage besides general liability
Considering all of this will make it possible to avoid cancellations and re-quote your insurance policy to suit emerging needs. Some projects that you take might have specific insurance requirements. If your existing policy wasn’t written according to your business specific necessities, you will have to cancel and re-quote, wasting your time and money.
Therefore, when taking steps to select the best type of insurance for you, it is advisable to seek the opinion of an insurance expert. This will help position your business on the correct place.

Words of advice to find the right insurance policy:

-Due to the complexity of the constructions business is important to -work with a specialized agent who can make sure you will be properly covered in all areas where risks are involved.
-If you buy a policy from an insurer with less than a “B” rating, there is a risk the company will go out of business.
-Read thoroughly and understand the exclusions. Make sure you understand what the policy exclusions are and that they are properly documented.
-The starting cost for general contractor policy can differ greatly. The cost depends mainly on the carrier you choose, and the level of coverage you want. Also impacting the cost is the size of your business, your location and the type of work you do.
-You will pay higher premiums for a higher occurrence limit or a higher aggregate limit (per year), and deductibles can also vary depending on your insurance company.
-When choosing your policy ask your agent for advice. Consider the limits, coverage and payouts, rather than shopping on price alone.

Hope this was as helpful for you as it was for me.
FarmerBrown1229 is offline  

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

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