Contractors General Liability Insurance
Contractors need certain kinds of insurance policies to protect them from personal liabilities related to the jobs that they do. Contractors general liability insurance covers incidents that can sometimes occur during a construction job. The type of insurance policy the contractor has may also cover a problem with their work that may occur for a specified time after the job is completed too. Contractors generally buy this kind of insurance to protect their assets from lawsuits that can arise because of construction jobs that they are responsible for. Also, if you borrow money for the job the lender may require that you be insured. A business owner may also ask if the contractor is insured before they hire them for the job. There are generally state regulations that the insurance companies follow when they offer these kinds of insurance policies. For instance, a state may require that the contractor offers a warranty on their work for a certain amount of time. Each state may have different requirements.
Contractors general liability insurance policies usually cover any accidents or mistakes that are made on a job site. Accidents and mistakes happen quite often on construction sites so it is essential to have enough insurance coverage to protect the financial stability of the contractor. Accidents can happen to employees, bystanders or to the client or anyone else that happens to be physically present on a construction site. Also, the accident or mistake may be caused by an employee who works for the contractor. If the contractor’s employee is responsible for an accident or makes a mistake on the job site that causes injury or damage, then the contractors insurance normally covers that as well.
There are different kinds of contractors general liability insurance policies to choose from. They are not all the same so if you are a contractor make sure you compare a few different insurance companies before you purchase your policy. You should speak to a liability insurance specialist who can help you determine what kind of coverage you need and for what amounts. You may have to provide proof of insurance from a subcontractor you hire for a job too when you purchase the general liability insurance. Some of the policies will let you add employees under the policies and charge you a fee for subcontractors.
An audit of contractor’s gross sales may be done to determine the level of coverage that is needed and the premium rate. The premiums for these kinds of insurance policies can be paid for on a yearly basis or on a monthly basis. If the contractor has a lot of employees they may be charged a different rate for certain ones. For example, the rate for insurance for an office manager will not be the same as the rate for a heavy equipment operator. Contractor's general liability insurance usually only covers property damage and bodily injuries due to the result of the contractors work. However, worker’s compensation usually pays for an employee that is injured on the job first.
The cost for contractors general liability insurance policies have increased a lot lately. One reason may be because there are increasingly more claims being filed for defective products being used by contractors. Really large claims against one contractor may be the cause for increased premiums for other contractors. If you are a new contractor who is shopping for general liability insurance you should be sure to comparison shop. One thing to keep in mind is that you may be able to reduce your rates by comparing several insurance companies at least once a year. If you find a general liability provider with more competitive rates then don’t hesitate switching over when its time to renew your policy.