Everything General Contractors Need To Know About Insurance
General contractors really do hold a lot on their shoulders every day. It doesn’t matter if you are a small firm that builds homes or you are a large firm that develops football stadiums in the Ontario area; you are going to face a number of risks every single day. Even your subcontractors working under you can be a risk. Since all these components are essential to the successful operation of your business it will be necessary to safeguard yourself from these risks. And, this is where insurance can come in handy. However, not just any insurance coverage will work. You need to know exactly what policies can extend the protection that you need.
Exploring General Contractor Liability Insurance
Whether you are a large or small contractor, general contractor liability insurance will be essential to safeguarding your company. It protects you in the event that there are claims made about bodily harm or property damage. It will cover any third-party expenses that are faced with these claims. These could be anything from property damage expenses to medical expenses. In addition to this, it will cover defense related fees in the event that the client wants to take you to court.
It is not irrational to think that something could go wrong on a busy construction site. Accidents are inevitable and they occur every day. With workers carrying heavy materials up and down stairs, operating dangerous equipment and climbing up and down ladders all day the odds of an incident are extremely high. In fact, last year alone in the country of Canada there were nearly 5,000 fatal occupational injuries. And, what’s even more staggering is that one out of five of these injuries where in the construction industry.
Some of the most common injuries were falls from heights, falling objects that hit other workers or third-parties, dirt caving in on someone, electrocution due to faulty tool wiring, chemical injuries, exertion injuries and fire related injuries. It is true that subcontractors will have their own liability insurance, but when a lawsuit usually takes place it applies to all the involved parties. Since you are the individual that hired the subcontractor, you will also likely be held responsible for the incident.
Exploring Workers Comp Insurance
Workers comp insurance is a type of insurance that was specifically designed to protect employees. It covers their lost wages and medicals expenses when they are injured on the job. However, it should be noted that it does offer you some protection as well. It covers any court related costs that are involved in the event that the employee wants to sue. Most areas in Canada will probably require you to invest in workers comp insurance if you are going to hire employees. When you are hiring subcontractors, you should always make sure that they carry this policy as well. When the subcontractor doesn’t carry this type of coverage his or her employees will be covered under your policy. This is good for the employees, but bad for you. If there is an incident it is going to raise the costs of your insurance.
Exploring Property Insurance
Not only do you need to protect your employees and yourself, but you need to protect your property as well. It is true that you will probably be on the job most of the time, but you will have an office where you store tools and materials. You might even use it for administrative work as well. Protecting your tools and property will be essential to safeguarding the successful day-to-day operation of your business. Builders insurance can protect your tools and materials when they are stored on the job and property insurance can protect your office and tools when they are stored in the office.
What Is The General Cost Of Contractors Insurance?
Anytime you start talking about pricing insurance things can get dicey right away. And, this is because there are so many factors that go into pricing insurance. The first thing that you need to know is that general contractors insurance will probably be higher than most other policies. And, this is because the industry is considered higher risk because you are responsible for subcontractors and their employees. Plus, the construction industry is considered risk anyways. You saw the injury stats from above.
However, working with a highly trained and dedicated agent should be able to help you lower some of your costs. Just remember that when pricing insurance providers will consider a number of different factors. These factors could include anything from the number of claims that you have previously filled to the number of years that you have been in business. Some providers even consider the type of work that you do, the number of employees, how much money you make annually and where you are located.
A Look At Commercial Contractor Insurance
Requirements and policies can vary from contractor to contractor just like the prices can vary. When undertaking large projects that usually last longer than a year or two most contractors will just go ahead and invest in what is known as the commercial contractor insurance policy. This is basically just a combination of different policies that will safeguard you, your employees and subcontractors from a variety of risks.
A Look At Residential Contractor Insurance
There are even customized insurance packages available for the contractor that builds single homes. However, what most contractors tend to forget is that insurance comes in limits. This means that the insurance company is only going to offer you so much protection and this is based on the amount of coverage that you get. Coverage is usually available in amounts of one million or more. Not only do you need to opt for the right types of policies, but also you need to make sure that you are investing in the right amount of coverage. Most small residential contractors can probably get away with at least a one million dollar policy. However, if you are undertaking huge commercial jobs, you will probably want to invest in a three or five million-dollar coverage policy.
How You Can Build The Perfect Policy
Insurance is by no means an easy thing to understand, but working with one of our qualified agents from LiabilityCover can make the process so much smoother. Call us now to start building and developing the perfect package that will safeguard you and your business from all threats.