Without the right insurance policy, a general contractor can easily run into liability issues when remodeling projects or managing large homes. General contractors are solely responsible for making clients happy and satisfied. It means they have to keep their employees productive so that everything remains on schedule, and honestly, it isn’t an easy task.
Whether the owner is unhappy with the quality of work done or a worker is injured on job, the construction project is most likely to go wrong. The commercial business insurance will protect your business investments and assets against the unforseen uncertainties general contractors face in the course of the project.
Different Types of General Contractors Insurance
There are different types of general contractors insurance including:
Professional Liability– This type of insurance is also refered to as Errors and Omissions coverage. It provides protection in case an employee makes a mistake that will impact your customer negatively and who then sues you for that. When choosing this policy, you should identify which liability exposures are more applicable to your working environment.
Excess Liability – This is a type of general contractors insurance policy that extends the coverage included in your other basic policies such as the general commercial liability. It provides protection beyond the set limits. It is important to note that excess liability is only applied to a single underlying policy: for instance, if you acquire a general commercial liability, you cannot use the excess liability coverage for any other.
Commercial Auto Insurance: This is a policy that protects vehicles used for business purposes in case an accident occurs. Commercial Auto Insurance policies should be written to cover all your vehicles subject to exposure.
Commercial General Liability: Just like a house’s foundation, this is a basic insurance coverage that connects all the types of insurance coverages. This policy provides coverage in the following ways:
- Products and Services: It protects you from liability claims that could arise after your project has been completed.
- Premises: This coverage protects you from a third party that claims to have got injured, bodily harm or experienced property damage while on the job site.
- Independent contractors: This policy protects you from liability that could arise from suppliers or subcontractors.
Bond Insurance: This coverage guarantees your clients that the project will be complete within terms of the contract. For example, if you cannot complete the project due to cash problems or any other reasons, this insurance will cover for you.
Umbrella Insurance: Just like Excess Liability, this policies will provide extensive coverage to compliment your basic policies. The only difference between this policy and excess liability is that it can be applied to multiple underlying liability
Inland Marine – This is a type of policy that covers your tools and equipment when traveling between project sites. The policy also covers the property in control of a different individual while it is at another location. Items included in the policy are tools, supplies and materials used in the project on long-term basis.