When thinking about the insurance for contractors and its types, determines the insurance requirements for construction contracts, as it is important that you identify the risks associated with the project and the terms and limits of the policy, which must be adequate to cover possible losses.
In fact, it is essential that you choose the correct type of coverage based on the frequency and magnitude of damage that can occur on construction projects.
Types of insurance required for most contractors
Between insurance for contractors and their types, keep in mind:
Commercial liability policy
The most common type of insurance within construction is general liability coverage commonly called a commercial general liability policy, which creates a basis for coverage and then you can purchase other policies to coordinate coverage based on the particular job or circumstances.
The standard policy insures liability related to bodily injury and property damage.
In the policy of ISO, Safety Service Organization used by most insurers, bodily injury is defined as bodily injury, illness including death resulting from anyone at any time.
Property damage is defined as tangible and physical damage to property including the total loss resulting from the use of that property.
Keep in mind that it does not cover the cost of repairing a defective work, as only damages resulting from that defective work are covered and claims for repair problems are generally governed by contract, which makes the terms of the warranty and the severance provisions are important.
Umbrella liability coverage
The umbrella liability coverage policy is ideal for a large contractor operating on large construction sites.
It can be a supplement to a CGL policy because it has maximum policy limits, which may not cover the entire liability of the contractor.
A builder’s risk policy protects you as the insured against certain dangers while the building is being constructed.
Generally, construction contracts require the owner or general contractor to purchase a hazard policy from a builder that names the owner, general contractor, and subcontractors as insured.
A builder’s hazard policy can cover the structure itself as well as include coverage of the materials, either on site or awaiting installation or transport to the job site.
These policies are generally written in terms of duration and provide coverage for theft, hail, explosion, and vandalism.
Professional liability coverage
Professional liability insurance is another insurance for contractors. Traditionally in design-related construction projects, most of the professional responsibility lies with the design professional.
However, more and more contractors are doing work as designers and builders and therefore take responsibility for design and exhibits at their own risk.
Coverage for this type of professional liability is often provided in a CGL policy, which is why many contractors who are involved in this type of business insure themselves with a separate policy.
Choosing the insurance for contractorsIt will depend on the type of work you do, for example if you work on other people’s property providing maintenance, offer construction services or if you work at a desk you will choose different types of coverage.
As a landscape architect, interior designer, consulting contractor, or other profession, you should be concerned about liability risks for losses that a client may experience as contractor recommendations.
If you work as a contractor with heavy machines and tools, for example a plumber, electrician or remodeler, you should worry about setbacks due to the use of compressed gas power tools or defective machinery.
If you are a contractor who works with food products, you need to worry about injuries and illnesses due to those foods or drinks that you serve.
Insurance for construction companies
Construction companies, from general contractors to national entities, need to protect their business from risks regardless of the size of the company, to cover the risk management needs there is worker’s compensation, umbrella insurance and other coverages that can be adapted to each construction company.
General contractors insurance
As a general contractor you face multiple risks every day, whether it’s a workplace accident or a poor workmanship lawsuit. In these cases, you could be sued for hundreds of thousands of dollars.
If you invest in a general contract insurance, you can cover this risk.
Typical general contractor GL insurance averages from $ 380 to $ 1,380.
The average policy premium also has the same value, the claim limit is $ 1 million with a policy limit of $ 2 million and an average policy deductible of $ 1,000.
Cost of commercial insurance for small and medium businesses
The average cost of general liability insurance or CGL ranges from $ 425 to $ 921 and the average annual cost is from $ 483 to $ 2,758.
Keep in mind that the price of the policy depends on a number of factors including the size and type of business.
For example, if you do not have employees with annual income from 0 to 150 thousand dollars, the average cost of general liability insurance will be 483 per year with a coverage limit per occurrence of 1 million dollars, a total coverage limit per annual aggregate of 2 million dollars and a coverage of medical expenses for 10 thousand dollars, a limit of personal and advertising coverage per occurrence of 1 million dollars.
As an exterior painting company, you must comply with legal and contractual requirements.
Your insurance costs will depend on the details of your business, but when estimating insurance premiums keep in mind that …
General liability insurance for foreign painters generally costs between $ 403 and $ 828.
The limit per claim is $ 1 million.
The policy limit is $ 2 million.
The average deductible on the policy is $ 500.
Roofers insurance costs vary based on the amount of liability you need and the type of work you do.
Homeowners typically require at least $ 1 million general liability insurance.
The insurance must have coverage for personal injury, advertising injury, medical payments, independent contractor liability, compensatory damages, punitive damages, and general damages.