In our article ”What is a Business Owners Policy (BOP)?”, we discussed how many insurance companies will add exclusions that apply to construction operations and subcontractors. If you have any questions about your policy, call a free LandesBlosch risk advisor. While there is no definitive size requirement to be a mid-range contractor, this is generally true for contractors with 50 to 200 employees. These contractors work on larger orders that often require specific insurance policies. It is one of the most difficult entrepreneurial businesses to insure. Not only can policies be costly, but they are often full of exclusions and limitations. Sometimes, after reading a particularly bad general contractor insurance, you may wonder if any risks are covered. If you own a residential building conversion business, we recommend running it through a company like Markel, which specializes in converting residential buildings. If you`re looking for more information, check out our article ”Business Insurance for Remodeling Companies – Explained.” This is an important reason why you should choose an insurance company that has submitted several additional insurance notes and a broker with experience in using these forms. Otherwise, you may not be able to meet the requirements of the position and lose work. Before hiring a contractor, you must ensure that the contractor has adequate general liability insurance coverage. In the construction industry, no two contractors have the same insurance policy – your business is unique, as is your coverage.

It`s important that you know the basics of what you have and what you might need in the future to make sure you have the most comprehensive protection. Even if your insurance program covers this exposure, it should not contribute until the contractor`s limits are exhausted and your defense costs are paid. This minimizes your exposure to expenses that could put your assets at risk. It is important that you do not assume the risks of liability of your contractor. Subcontractor Exclusions – Many insurance companies rely on the exclusion of CG 2294 subcontractors on their general liability insurance policies. This limits certain claims arising from the actions of your subcontractor. We highly recommend that you read our article to learn more about this, as it can impact the protection of your business. Workers` compensation insurance provides benefits and protection to workers who have been injured on the job. Your medical expenses and salary are covered by this type of insurance. In the construction industry, an accident can put your employees at a very high risk of hospitalization.

Meanwhile, they are unable to work and therefore have no income. With a workers` compensation policy, their medical bills and a portion of them are paid. This coverage gives your employees the security they need to work efficiently and safely. You will have the security of knowing that you are insured and not breaking the laws of the state. For example, in addition to general liability and property coverage, a contractor`s BOP typically comes with additional coverage for your hand tools and belongings during transportation. It is often difficult for a contractor who is fully insured, has the quality of protective equipment and adequately trains employees to compete with those who do not. What happens if, despite all the precautions, there is an accident with your contractor that leads to a liability problem? Who is responsible – and who pays – if: Avoid taking a person`s word for it when they say there is insurance. Verbal confirmation is of no use if the person is actually injured while not insured. Ask the person to ask their broker to send a certificate of insurance. If the broker sends it by email or fax, the policy may be revised. In some cases, small businesses may try to convince homeowners that insurance is not necessary. Avoid falling into this lie as it is a common trap used by hobbyists to convince owners to buy services or products that are usually of poor quality.

In addition, damage or inadequate services due to the lack of insurance must be compensated out of pocket. Instead, it`s important for contractors to work with an independent insurance agency that can help you determine the right coverage for your contract business and provide you with the coverage you need. Are you a player? Would you make a bet that would bring in a few hundred dollars if you won? But if you lost the bet, you would lose everything you have. Of course, you would never make that bet. However, if you make your contract without the right insurance, that`s exactly what you`re doing. You basically bet everything you own that you won`t have any kind of claim. The worst part is that the claim doesn`t even need to be substantiated. If you are sued, you still have to pay legal fees to defend yourself and your business.

It`s important to remember that even if the court rules in your favor, you still have the cost of your legal defense. So read on and I`ll explain how you can protect yourself and your business. I`m also going to give insider tips that can save you money, differentiate yourself from your competitors, and significantly increase your results. Although many companies pay for their work as independent contractors (1099), these workers can be considered regular employees in the eyes of the legal and insurance industry. .

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