Author Box
Articles Categories
All Categories
Articles Resources

What You Need to Know About Contractors Insurance

June 01, 2012 | Comments: 0 | Views: 176

It is a necessity for any business undergoing construction or renovation to purchase a contractors insurance in order to safeguard their financial stability, as well as their workers' wellbeing. It's not in favor of the business' interest to leave it susceptible to financial drains, in case of management, materials, and manpower problems. There are certainly a lot of risk factors present in a construction site, and all of these could very well hurt a business, if not properly dealt with. Sure, the contractor may be held liable for some of the issues, but most of the losses will be incurred by the property owner. Besides, majority of the states in the U.S. demand that they are secured, before a project license is granted.

Contractors insurance basically covers losses due to lightning, vandalism, fire, lawsuits, injury, and other property damages that are not caused by professional errors or intentional acts. But there are certain policies that do not indemnify against earthquakes, acts of violence, and flooding. The safest plan that you can apply for is a general liability contractor insurance, since it typically takes care of all of the basic concerns, when it comes to this type of activity. Usually, it is the building owner's responsibility to acquire a builder's risk insurance, and ascertain its scope. But, the general contractor can also be tasked to buy it, as stipulated in the contract. It is important to note that this type of property insurance is only valid during the construction period, and is terminated upon the project's completion.

To ensure that you are getting the best policy, it is advisable that you shop around for options, before you settle with a provider. Submit your contracts for quotes if you are a contractor, and negotiate the rate of your policy if you are the business owner. This should help you arrive at a manageable monthly payment term that addresses your construction needs, as well as your monetary limitations.

Next, you should assess the supplementary general condition of your general liability contractor insurance, so that you know who are covered. There are a number of other people who may enter a job site, aside from the builders. You can expect messengers, trespassers, the licensees, and some invitees to come along every once in a while, so they must also be added as insured. To reduce liability exposure, as a contractor, what you can do is determine regulations within the job site, arrange an agreement with the client, and try to be hands-on with any visitation, to pre-empt any potential accidents from happening. It would also be smart to keep the site as hazard free as possible, by disposing all of the materials carefully.

Lastly, never hesitate to use a broker specializing in contractor insurance. This should make the policy application less burdensome. A business owner and contractor would find a broker's meticulous eye for detail and expansive network very helpful, especially for stringent projects. Obviously, you both can't dedicate the right amount of time to go over each unique policy and draw up proposals. A broker will help you accomplish that, and set you up with the right provider or providers as soon as possible.

For more information about contractors insurance and a general liability contractor insurance, visit our website

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Contractors Insurance


General Liability Contractor Insurance

Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 243

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 221

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williamsl Insurance > Workers Compensationl July 08, 2012 lViews: 221

Engrossed indemnity companies have been a popular tax and business planning tool since many years. Earlier, only multinational firms used engrossed indemnity companies, but that concept has changed

By: Jennifer Boeriol Insurance > Workers Compensationl June 30, 2012 lViews: 180

Every business owner in the UK is governed by some regulation or other. For any business that employs staff, one of the most important regulations is actually a legal requirement as laid down in the

By: George McGonigall Insurance > Workers Compensationl June 21, 2012 lViews: 185

Income protection insurance generally provides benefit when you become unemployed temporarily due to injury, accident, or illness. Even though it covers 75% of your gross annual income, not many

By: Jeff R Triboletl Insurance > Workers Compensationl June 20, 2012 lViews: 166

A safe workplace is obviously essential for your employees' health and well-being, but it is also important when you consider the insurance costs for workers compensation. Making sure your workplace

By: Kelly C. Williamsl Insurance > Workers Compensationl June 17, 2012 lViews: 188

The very last thing you look forward to is your workers' compensation audit. It takes you at the very least a few days to assemble everything the auditor really wants to see: huge binders and stacks

By: Ellen Yeel Insurance > Workers Compensationl June 17, 2012 lViews: 190

With the improvements in design and aesthetics, there are a number of formal dress options women can indulge in for that special occasion. It doesn't even matter what size they are because there are

By: Cedric P Loisellel Womens Interestsl July 04, 2012 lViews: 215

In this economy, houses for sale are a dime a dozen, which is good for those looking to settle and bad for those that are willing to sell. It's hard to compete with the prices some of these

By: Cedric P Loisellel Real Estate > Sellingl July 04, 2012 lViews: 197

Coaches are professionals who are paid to help individuals get through problems or meet expected goals. They are teachers of sorts but are more hands on when it comes to educating and guiding their

By: Cedric P Loisellel Self Improvement > Coachingl July 01, 2012 lViews: 212

While instant payday loans are useful for emergency situations, obtaining one can be avoided by aligning your finances. You don't need to get instant loans if you manage your finances well. People do

By: Cedric P Loisellel Finance > PayDay Loansl June 28, 2012 lViews: 221

People buy swimming pools for summer fun, but it is not enough that you buy a swimming pool set. There are swimming pool accessories like filters, ladders, and chemicals. These accessories are

By: Cedric P Loisellel Home Improvement > Swimming Pools Spasl June 28, 2012 lViews: 202

Pools need regular cleaning to ensure that they are in tip top shape. See, aside from being a health hazard, unsanitary practices could also significantly reduce the lifespan of your pool facility,

By: Cedric P Loisellel Home Improvement > Swimming Pools Spasl June 22, 2012 lViews: 256

Discuss this Article

comments powered by Disqus