1. General Contractor Liability Insurance
Normally, it is difficult for general contractors to work without general insurance. General contractor
liability insurance is intended to guard operators and owners of companies from claims that may
come from a broad spectrum of sources. These exposures could be just about anything, including
liability engendered by accidents from the operations of the insured party, contractual liability,
products manufactured by the insured party, etc.
The liability you select, whether it is one, two, or three million dollars, determines the cost of general
contractor liability insurance. Also factored into the rates the rates are the kind of work undertaken,
gross receipts and total payroll expenses. Similar to auto insurance, when it comes to general
contractor liability insurance, you will first have to make a down payment and then follow it up with
installments. Before buying general contractor liability insurance, it is best to compare the quotes
available in the market.
It is the general contractor's job to make sure that the people working under him are covered by an
insurance policy. If for example, a person who is not a part of the project gets injured, the injured
person's lawyer can target just about anyone involved in the project. The more individuals that are
involved, the greater the chances of a successful lawsuit.
The General Contractor will have to make sure that all his subcontractors have general liability
insurance. If they have the necessary insurance the liability exposure, and the insurance rate, is
distinctly reduced. Generally, the subcontractor is not considered an employee; he is an independent
worker. So, the contractor is not liable for his subcontractor's mistakes. Still, a lawyer worth his salt
can find ways to charge anybody working on the project with negligence. Thus, liability insurance for
everyone becomes imperative.
Get Contractors Insurance