General contractor insurance is an extremely important topic to learn about. Wherever there are business projects, there are contractors – businesses that sign contracts to do construction or perform various services for other businesses. And these contractors all need insurance. What happens if they don’t have it? Well, a general contractor without insurance could incur tremendous losses that could in turn spawn vicious, protracted lawsuits and result in terrible damage to your finances and reputation! No fear, however - we’ll walk you through some different coverage options and help you know what to look for to find the best possible insurance rates.
If you are a general contractor, make sure to choose your insurer carefully. A.M. Best is a popular general contractors insurance ratings company that you can check with to find out the rating of your prospective insurance company. Try to get free quotes online or over the phone that you can then compare. The best insurance for you will either be cheap, comprehensive or somewhere in the middle. Do you need top-notch coverage? It will probably cost more. Can you live with cheaper coverage? It might not include as many bells and whistles. We hope you are able to find the best possible bang for your buck.Since every contractor has unique needs, the right insurance company for your contracting business may vary depending on your specific business policies and practices. The best insurance companies are able to offer flexible plans that can change to meet your particular needs. Here are some additional considerations to make:
- How much professional liability do you want? How much can you afford?
- Do you need protection in case someone produces materials of faulty workmanship that end up hurting your projects?
- Have you just had some event for which you want retroactive coverage? Act fast and you might be able to get good rates for it.
- Do you need liability cover for design work done by your own staff as well as by outside subcontractors?
- How high do you want your liability limits to be? If you’re shooting for $30 million, for example, there are fewer companies that can help you.
- Do you need specific coverage for clean-up costs, like those incurred on construction sites?