Hard Costs in the Construction Industry
It is essential to have general contractor insurance if you are in the construction industry and engage the services of individuals to work with you. However, it is better to have general contractor insurance in place before you commence a project.
Accidents happen without notice, and they are circumstances that you cannot control in most cases, and this does not prevent you from paying for damages to the affected person or persons involved. The insurance coverage required by your business will be based on several factors such as the equipment used, your business structure, the kind of work you do, and other factors.
This article will give you the information you need about general contractor insurance costs to enable you to make an informed decision about the best policy to buy.
General contractor insurance cost: How much is it?
The average general contractor insurance cost is usually around $90 per month, $1,080 per year for at least $1 million limit policies that offer protection against damages and third-party injuries.
However, several factors determine the prices of the insurance policy, and these are:
● Kind of services offered
● Type of insurance coverage required
● Business property and equipment
● Number of workers
● The type of vehicles used by the company
● Claims history
What is general contractor insurance?
If you are a contractor in the construction industry, you are likely to work on some tasks that would expose you to certain risks. With the use of some equipment in some workplaces, the chances of getting injured are higher.
It is critical to have an insurance policy in place that can pay for the damages and the legal expenses. General contractor insurance ensures your business, employees, and assets are protected whenever an incident that leads to a significant loss happens.
General contractor insurance: What does it cover?
It is important to have general contractor insurance because it covers general liabilities such as:
● Bodily Injury: This insurance ensures your business is protected when there is a physical injury to a worker, client, or third party at your business site or on your client’s property when you are working.
● Property Damage: General contractor insurance can save you if there is damage to your client’s property or a third party when you are working.
● Medical Expenses: This cover the medical bills related to injury claims. This happens when someone gets injured on the site or on your client’s property while you are working.
● Advertising Liability: If another brand or third-party incurs financial damages due to a false advertisement made by you, you can be charged to court for defamation, slander, or libel. This happens when you make an outrageous claim about a competitor in one of your commercials.
Your specific insurance coverage will be determined by your declared limits and your package choice. Therefore, you need to evaluate your policy and thoroughly understand your coverage before taking a leap.
Risks and benefits associated with general contractor insurance
When you have general contractor insurance, it helps you to cover risks such as:
● Asset Protection: In most cases, the business structure of most general contractors is a sole proprietorship, and their personal assets cannot be entirely separated from the business, and these assets can be used to settle liabilities. General contractor insurance will save you from losing your assets and your business from collapsing.
● Payment of Legal Costs: General contractor insurance can ave your business if a worker, client, or third party charges your business to court. The general contractor insurance will ensure the payment for legal representation and damages.
● All-Round Protection: As a business owner in the construction industry, you enjoy calmness when you have general contractor insurance for your business. You are at peace because your company is insured against unforeseen circumstances. In most cases, customers love to hire the services of licensed and insured contractors because they know that they are in safe hands.
General contractor insurance: Who needs it?
General contractor insurance protects general contractors, their employees, clients, and other third parties from potential injuries or damages while working.
Various types of insurance needed by general contractors
As a general contractor, you need to know your individual need and go for the most suitable type of insurance coverage for your business. These are some of the insurance services you can check:
General Liability Insurance: With this insurance, the business of general contractors is protected from injury or accident claims, misleading advertisements, property damage, and other related expenses.
Business owner policy (BOP): It combines the essential coverage for most brands. It is a combination of commercial property and commercial general liability insurance policies.
Workers’ compensation insurance: It protects your business as it covers medical bills and lost wages of an injured or sick worker.
Disability insurance: This insurance provides income for a person who cannot work due to illness or injury. However, there are different plans for short-term and long-term.
Guidelines for buying general contractor insurance
The cost of purchasing general contractor insurance can vary, but it is crucial to make an informed decision when getting a policy.
These are the guidelines to consider before you buy:
● Evaluate The Risks of Your Job: Before choosing the insurance for your business, it is essential to evaluate the risks associated with your services, which will help you choose the best insurance coverage.
● Comparison of Quotes is Important: Reach out to several insurance providers and ask for quotes. This will give you a fair idea of the prices of insurance costs.
● Collaborate with an independent agent: When you work with an independent agent, you will know more about the complex nature of general contractor insurance by evaluating your needs and advising you on the best insurance broker to choose.
General contractor insurance ensures full protection for your business against bankruptcy from lawsuits and financial breakdown. A thorough understanding of the general contractor insurance cost assures you that your business is protected from all potential risks.- by Matt Watts