Every contractor needs general liability insurance coverage. This essential policy protects your business from third-party claims related to bodily injury, property damage, and advertising injury. It covers incidents at your premises, job sites, and even after project completion. The policy also provides legal defense if you're sued.
For contractors in construction, oil and gas, remediation, and marine industries, insurance needs are unique. You're often responsible for your work long after completion. Clients and property owners may require you to maintain coverage for years, depending on state laws and contract terms. Each state has different rules about construction defects, tort liability, and statutes of limitations.
In states like Texas and California, clients often ask for a Certificate of Insurance before awarding contracts or allowing site access. They may want to be named as "Additional Insured" on your policy. This usually applies to core coverages: general liability, commercial auto, and workers' comp. Some clients have specific wording requirements for these certificates.
Before bidding on any job, ask for the client's insurance requirements. Let's review your contract together to ensure you're comfortable with the costs and terms. This way, you can include insurance expenses in your bid and understand any extra responsibilities you're taking on.
We're seeing more contracts requiring "Excess Liability" insurance. Project owners are shifting liability to contractors through contractual agreements. We can help you review these contracts to understand your obligations.
General liability insurance for contractors is crucial in today's business environment. It protects you from financial losses due to accidents, injuries, or property damage related to your work. Without it, you could face costly lawsuits that might bankrupt your business.
This coverage is especially important for small to medium-sized contractors who may not have the financial resources to handle large claims. It gives you peace of mind, knowing you're protected if something goes wrong on the job.
Remember, having proper insurance coverage isn't just about meeting client requirements. It's about protecting your business, your employees, and your future. Don't cut corners on insurance – it's an investment in your company's longevity and success.
If you're unsure about your insurance needs or want to review your current coverage, reach out to us. We specialize in contractor insurance and can help you find the right policy for your specific needs and budget. Don't wait until it's too late – get the protection you need today.
During any construction phase, it's crucial to have 'Course of Construction/Builders Risk' insurance. This coverage protects against specific risks like fire, theft, vandalism, collapse, lightning, windstorms, earthquakes, and floods. It covers both hard costs to rebuild and soft costs like contractor profit. Subcontractors should request this coverage, and banks often require it for funded projects. We're here to explain why this coverage is so valuable.
'Design-Build' contractors face unique challenges. They take on design responsibilities on top of their usual job-site and contractor duties. This increases their liability compared to the traditional 'Design-Bid-Build' approach. Why? Because they're responsible for designs, plans, delivery methods, and guaranteeing both design and construction. To address this extra risk, contractors should get 'Professional Liability/Errors & Omissions' insurance. This covers claims of negligence in design or engineering.
Have you updated your 'Subcontractor Agreement' lately, especially the indemnification (Hold harmless) part? We have a sample agreement you can modify. Better yet, have a contract specialist tailor it to your company. Let us know if you'd like us to email you a copy.
'Subcontractors' should match the general contractor's insurance limits. If the project owner requires excess coverage, subcontractors should do the same. They should also name you as 'Additionally Insured' on their general liability insurance coverage for contractors, with a waiver of subrogation. The same goes for commercial auto insurance with hired & non-owned auto coverage. Don't forget to get 'Certificates of Workers Comp' with a waiver of subrogation.
Owners often require Owners Contractors Protective (OCP) insurance. This covers third-party claims from the general contractor's or subcontractors' employees suing owners for negligence due to job site conditions. It helps with defense costs for the owner. Sometimes, this coverage is already in your general liability policy or additional insured endorsements.
A Controlled Insurance Program (CIP) is when one party buys insurance for most or all parties working on a project or site. It usually includes builders risk, commercial general liability, workers comp, and umbrella liability. CIPs are common for single projects but can also cover ongoing maintenance or multiple projects. They offer better coverage control, potentially lower costs, and less litigation. They can be owner-controlled (OCIP) or contractor-controlled (CCIP).
General liability insurance coverage for contractors is a must-have in today's business world. It protects you from financial losses due to accidents, injuries, or property damage linked to your work. Without it, you could face bankruptcy from costly lawsuits. This coverage is vital for small and medium-sized contractors who might struggle to handle big claims. It gives you peace of mind, knowing you're covered if something goes wrong on the job.