07 Jan Buying General Liability for Contractors
Buying General Liability for Contractors
While it isn’t required, every Contractor should carry a General Liability for their business. General Liability is affordable, easy to find, and provides a lot of very important coverages. General Liability may even help you get more clients, as many General Contractors and homeowners require their subcontractors to carry General Liability.
Buying General Liability for Contractors- Classifications
Whether you are a painter, carpenter, or electrical contractor, you should be classified as such. This is crucial for several reasons. For one, the type of work you do is a rating factor with most carriers, meaning you may be over-paying or under-paying for your insurance. If you are incorrectly classified and under-paying for your coverage, your Insurance carrier may potentially deny your claim or hit you with an additional premium bill if an accident were to happen.
Buying General Liability for Contractors- Additional Insured Endorsements
A big part of being a contractor is needing Certificates of Insurance (COI) for various jobs you are doing. Often times the party requesting the COI also request that they are named as additional insured on the COI. These additional insured endorsements are not always included on the policy. Some carriers charge $50-$100 for each additional insured endorsement. For this reason, it is important to find a carrier that already includes additional insureds, also referred to as blanket additional insured.
Buying General Liability for Contractors- Service
Contractors tend to require more service than other industries because there are often certificates of Insurance that are required for various jobs. This is where having the right broker will make the difference. There are often times where getting a certificate of insurance in a timely manner can determine whether or not you are successful in bidding on, or getting paid on a job. Some brokers can takes several days to issue a certificate, while others can take just a few hours.
Are you a contractor wanting to learn more about General Liability Insurance? Give us a holler! You can reach our contractor specialist at 925-297-4829.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.