14 May Insurance for General Contractors
Insurance for General Contractors
If you manage or own a company with a General Contractors license, it is important you know how to obtain the proper Insurance to protect your business. There are many companies that offer Insurance to General Contractors, but there are few companies that really are a good fit. We will discuss some of the important coverages for your General Contracting company.
Insurance for General Contractors- General Liability
General Liability is easy to find if you are a contractor, however, not all programs are created equal. As a General Contractor, you may be involved with new construction, tract homes, commercial property, etc. Many of the inexpensive General Liability programs for contractors specifically exclude this type of work. With that said, it is absolutely imperative you take the time to review the coverages, and just as importantly, review the exclusions of the policy you are purchasing. We understand that as a business owner, you want to save money, but there is no point in purchasing Insurance if it excludes most of the work your business performs.
Insurance for General Contractors- Workers Comp
In California, Workers Comp is required by law if you have employees. It is your responsibility to cover these employees with a Workers Comp policy. As you may already know, Workers Comp for contractors is fairly expensive. For this reason, it is particularly important to correctly classify your employees. With General Contractors, most insurance carriers will classify your employees as carpentry, unless otherwise specified. The carpentry class code may apply to some of the operations, but if your employee is just installing drywall, or flooring, they should be classified as such, which may lead to lower Workers Comp premiums.
Insurance for General Contractors- Subcontractors
General Contractors tend to utilize subcontractors more than other contractors. It is important to remember that you may be exposed to vicarious liability from the work your subcontractors perform, therefore it is important to make sure your subcontractors carry their own General Liability. It is also fairly common to require your subcontractors to name you as Additional Insured on their General Liability. In addition to requiring the General Liability, if your subcontractors have employees, they should have their own Workers Comp policy as well.
If you have any questions or would like to learn more about Insurance for General Contractors, give us a call!
You can reach our Contractors’ Insurance specialists 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.