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Contractors Insurance

by Admin on October 27, 2011

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e are all most likely very familiar with a very old, wise saying that no one in life can escapes taxes and death. In today’s world, we need to add a third element and that is that no one can escape insurance. For many, insurance seems to be a negative requirement that one must put up with but, in reality, insurance is a means to provide protection, either to an individual or to a business. The importance of having insurance really comes to light when an incident occurs that requires a great deal of money to be spent in order to take care of repairing the damage caused by a particular incident. When this expense is weighed against the premium cost of an insurance policy, we are suddenly very grateful for our coverage and realize that the premium is more than well worth it.

For most individuals who need insurance, such as medical, dental, and unemployment insurance, they can obtain these types of coverage generally through their employer. However, if you own your own business, such as a construction business, you will need to obtain an insurance policy to cover your business and its needs. This type of insurance is referred to as a Contractors Insurance.

What Is A Contractors General Liability Insurance?

Contractor insurance is a broad form of a general contractor insurance coverage. Also referred to as “wrap” insurance or an “umbrella” limited liability insurance, the contractor liability insurance policy helps to protect the general contractor, the subcontractors who work under his or her supervision, the project owner, any defects that may occur on the construction project itself, loss of construction materials either through theft or natural means, or any other form of disaster that may occur on the construction site. It may also include a workman’s compensation clause to cover any injuries suffered on the job, not only for the employees of the company but for any innocent by-stander who may suffer an injury at the site.

Any one of these events alone could inflict a tremendous financial burden upon the general contractor. In fact, the financial outfall could be so devastating as to result in the total and complete loss of his or her business. Because the ramifications of being uninsured or even underinsured can be so detrimental, it is extremely important to find the right contractor’s insurance for you.

What Type Of Contractors Liability Insurance Do You Want?

Not all contractor insurances are equal in their coverage nor do all contractors insurances cover every situation that your business may encounter. As such, it will be extremely important for you to determine exactly what types of coverage you want, how much coverage you want, and the length of time that you want the coverage to be in place as some insurance policies can be obtained for specific individual projects.

You will also need to find out what your state’s requirement is as many states have a minimum requirement of coverage allowed. Once you have gathered all of this vital information you will be in a much better position to locate and negotiate the right type of policy for you and your business.

Searching for a Good Liability Insurance for Contractors

When you begin to search for an insurance company to provide you with your contractor general liability insurance coverage, you might become overwhelmed at the volume of different companies that are available, especially when you do your research on the internet. A couple of the larger companies which you might want to check into include Nationwide Insurance and Hartford Financial Insurance.

For beginners new to insurances, choosing a well known insurance provider gives them a feeling of confidence because of the insurance company’s broadly known reputation. However, it is important to realize that sometime the larger companies also require a larger premium and do not necessarily provide the best coverage for you and your business. Therefore, do not be afraid to check out some of the smaller, more local and unknown companies as they can often be far more suited to you and your company, can provide you with excellent coverage and, often, can provide you with a more economical premium.

If possible, you could even ask the insurance company for a referral of current customers so that you can speak to them about how well the insurance company has addressed their needs, the helpfulness of the insurance staff, the timeliness of any claim payments, or any hassles that may have occurred.

It may seem like there is a lot of work at first in finding the right insurance company for your contractor insurance policy but, in the long run, finding that right policy will go a long way in providing you with peace of mind so you can focus on what’s really important, and that is your company’s potential, reputation and growth.

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