10 Feb General Contractor Insurance
General Contractor Insurance
General Contractors work on a wide range of projects, from basic handyman work to large development project management. This wide range of work presents several areas of business that are important to cover properly.
General Contractor Insurance – Sub-Contractors
Many General Contractors utilize subcontractors with the thought that they will not be liable for any of the subcontractors work. The reality is, there is a often vicarious liability that you should be prepared for. Check with your General Liability carrier to assure they are aware of the amount and type of work being subbed out. In addition, obtain Certificates of Insurance from your subcontractors that name you as Additional Insured. This is a great first step in protecting your business
General Contractor Insurance – Bonds
Carrying a $12,500 Bond is a requirement with the California Contractors State License Board. The biggest rating factor for calculating Bond premium is your personal credit history. If your credit history is preventing you from getting a good rate on your bond, there are other options. These options include co-signers, which can bring the cost down dramatically, as well as checking with other carriers as they do have different rates for different credit history. In addition, you can always
post the cash with the Contractors State License Board. This would save you a lot of money long term if you are paying a lot for your Bond.
General Contractor Insurance – General Liability
General Liability is very affordable and every General Contractor should carry a policy, regardless of operations. When shopping for General Liability, do not go after the best price, go after the best coverage. There are many General Liability policies that are designed for General Contractors that have a lot of very critical exclusions. Often times, the difference between an exclusion-filled budget policy and a quality policy is just a couple hundred dollars.
If you are a General Contractor that wants to learn more about Insurance, give us a call 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.