It is a must for any company under construction or renovation to acquire contractors insurance to safeguard its financial stability, as well as the well-being of its workers. It is not in the interest of the company to leave it susceptible to financial losses, in the event of management, material and labor problems. Certainly, there are many risk factors present on a construction site, and all of them could harm a business, if not properly addressed. Of course, the contractor may be responsible for some of the problems, but the property owner will incur the majority of the losses. Also, most US states require that they be insured before a project license is granted.
Contractors insurance basically covers losses from lightning, vandalism, fire, lawsuits, injuries, and other property damage that is not caused by professional error or willful acts. But there are certain policies that do not compensate against earthquakes, acts of violence and floods. The safest plan you can apply for is general liability contractor insurance, as it generally takes care of all the basic concerns, when it comes to this type of activity. It is generally the responsibility of the building owner to purchase builder hazard insurance and determine its scope. But it can also be entrusted to the general contractor 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 ends once the project is completed.
To ensure you get the best policy, it is advisable to shop around before reaching an agreement with a provider. Submit your contracts for quotes if you are a contractor and negotiate your policy rate if you own the business. This should help you come up with a manageable monthly payment term that suits your construction needs, as well as your monetary limitations.
Next, you need to evaluate the supplemental general condition of your general liability contractor insurance to find out who is covered. There are other people who can enter a workplace besides builders. You can expect messengers, intruders, licensees, and some guests to come by from time to time, so they should also be added as insured. To reduce your exposure to liability, as a contractor, what you can do is determine the regulations within the job site, enter into an agreement with the customer, and try to participate in any visits to avoid potential accidents. It would also be wise to keep the site as safe as possible, disposing of all materials carefully.
Finally, don’t hesitate to turn to a broker who specializes in contractor insurance. This should make the application of the policy less burdensome. The business owner and contractor would find a broker’s meticulous eye for detail and expansive network very helpful, especially for rigorous projects. Obviously, both of you can’t spend the right amount of time going over each single policy and coming up with proposals. A broker will help you achieve this and put you in touch with the right vendor or vendors as soon as possible.