Contractor liability insurance protects finances for many workers
Contractor liability insurance is an extremely important protection for many workers involved in the development of buildings and new construction. It is protection used by general contractors, builders and developers, as well as artisan contractors engaged in many forms of specialized work such as masonry, plumbing, and electrical. The insurance is one of the more common forms of coverage used by these professionals as it generally offers them the broadest financial protection in the event of a law suit.
The general purpose of contractor liability insurance is to protect contractors who engage in some aspect of building development. Typically, when building developers and general contractors take on large construction projects, they rely on the work of many specialized contractors. The developer oversees the project and likely has his or her own team of builders, but due to all of the components involved in building construction, many contractors are commonly employed.
When a developer fails to deliver on his promise to a client either by failing to complete the building, missing major milestones, or being negligent in a way that leads to damages, he is likely to be sued by the investor or owner of the building. Sometimes the builder is the owner of the property. Because of the many hands involved in the development of the building, the general builder is likely to look around and find others to assign some or all of the blame too. If the problem is plumbing related, for instance, the builder would likely attempt to seek financial retribution from plumbing contractors. If it is an electrical issue, he would look to the electrical workers.
With the presence of the risk of financial liability, most contractors operate with contractor general liability insurance. Some have protection ongoing, while many buy contractor liability insurance for each significant project they work on. While there are some more specialized types of contractor insurance, contractor general liability insurance offers the contractor the broadest protection against financial loss related to wrongdoing. The insurance offers protection for personal injury, property damage, advertising, and completed operations and products, among others.
The best option to find general contractor liability insurance is an agency that specializes in various forms contractor insurance, including contractor liability insurance. There are specialists available that operate through an online presence in order to offer extreme convenience and cost savings for contractors. Contractors can quickly explore product and rate options as well as gain knowledge about the benefits of protection and the unique advantages of various types of coverage.
There are many reasons why contractors should look to a specialized agency for general contractor liability insurance. Due to the important nature of the protection and its impact on the financial health of the contractor, it is better to work with a company that offers expertise, as opposed to one that is more of a general insurance carrier.
Many contractors that work on large projects routinely work with insurance agencies to add extra protection onto their contractor general liability insurance. Added protection can include worker’s compensation, inland marine, disability, and bonds. Bonds offer protection for the contractor involved in construction that goes against local, state, or federal building codes or is not in line with building licenses.
Contractor insurance is a must for any company or individual seriously engaged in contractual construction work. Large and small companies alike are at risk from liability in the event the client feels wronged or damaged during the development and completion phases of a construction project. Some companies have been knocked out of business because of the financial burden that came with a law suit when the company was not protected by contractor general liability insurance. Many companies also use the fact that they are well covered as a recruiting tool to hire the best available contractors. Contractors feel less concerned about liability and more confident in their company when it protects their financial security.
There are maximum allowable coverage amounts for the various components of contractor liability insurance. Most covered items and events carry a maximum pay out of $1 million to $2 million. This can be limiting for some contracting companies, especially larger operations, however companies can expand the scope of their protection by adding some of the customized extra protections discussed. Contractors need to take insurance seriously. Many builders now require that contractors have adequate protection. Even when it is not required, contractors should understand the ramifications of working on a project while vulnerable to huge financial loss.
For additional information or if you wish to obtain a contractor insurance quote, please contact SafePro Insurance Services http://www.safeproins.com.
Woodland Hills, CA
Phone: 1-888-411-7679
Contact: Quotes@SafeProIns.com
SafePro Insurance Service is an independent insurance agency specializing in all types of contractors liability insurance & general liability insurance in Woodland Hills , California.
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