You are negotiating a large new contract, and the owner requests that you provide them a certificate of insurance naming them as additional insured.

You might wonder, can I get that and how much will it cost me?

You can relax; it is a simple endorsement that you can add to your general liability insurance policy. This is a very common endorsement, and the exact language of the endorsement is as follows:

This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered Operations Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for “bodily injury”, “property damage” or “personal and advertising injury” caused, in whole or in part, by:1. Your acts or omissions; 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. B. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to “bodily injury” or “property damage” occurring after:1. All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed;or 2.That portion of “your work” out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project.

The first reaction after reading that is, what does this mean to me?

After you take a breath, it is pretty simple to understand. In order to be allowed on a construction site or before starting work, contractors must show that they have insurance.

The people you will be working with also will want their name on the certificate of insurance naming them as additional insureds on your commercial general liability (CGL) policy.

By requiring this, the parties hiring the contractors have the expectation that the additional insured endorsement will defend them in case they get sued for something relating to your work. Whether or not they will be covered depends on the additional insured endorsement.

The most common additional insured endorsement for contractors is the CG 20 10

The CG 20 10 covers the additional insured with respect to liability caused by your ongoing operations. “Ongoing operations” does not include “completed operations.”

Therefore, the current form CG 20 10 does not include completed operations coverage for the additional insured. If that coverage is required, you will also need the CG 20 37 endorsement.

Ongoing Operations Occurrence, Example:

Say after 5 weeks after you finish the roof, the chimney falls over on the neighbor’s greenhouse. This is property damage out of your completed operations since to job has been completed. Once again, the neighbor sues the property owner.

If the property owner was named as an additional insured using the current CG 20 10, the property owner would not have covered for the completed operations exposure as this is not ongoing operations, as your completed work caused the damage.

The property owner would not have coverage for the completed operations exposure under the contractor’s CGL policy.

The current form CG 20 10 after 1985 does not provide coverage to the additional insured for completed operations. It only provides coverage for ongoing operations, and this was a completed operations exposure.

If they also wanted coverage for completed operations, they would need a CG 20 37 endorsement.

Call an Expert

Blanket Additional Insured Endorsement

The Blanket additional insured endorsement is an endorsement that allows your agent to issue certificates of insurance to add as additional insureds, those individuals or entities for whom the named insured is performing operations and with whom the named insured has agreed in writing to name as an additional insured.

Having the blanket endorsement allows insurance agencies to send out these endorsements without requesting permission from the insurance carrier’s underwriters, which sometimes can take days.

This makes the request for a certificate of insurance quicker to process, therefore allowing you to start work sooner.

A requirement of getting a blanket additional insured is the written contract requirement saying you must name the owner as an additional insured.

A blanket additional insured endorsement can be easily added to your General Liability Insurance. However, you need to be aware of this when comparing quotes. You need to ensure that blanket additional insureds are included when comparing quotes to have an equal comparison.

By having blanket additional insured, you can request to have all your clients or customer listed as additional insured on your policy with no additional charge.

The cost to add additional insured varies by the insurance company but can be as little as $250.

In some policies, the endorsement is included at no extra cost. Regardless of cost, it is typically far cheaper to pay for the blanket additional insured as opposed to each required party.

You need to make sure any quote you are given includes Blanket Additional endorsement. Especially on larger projects, the number of entities you might need to list as additional insured can be significant.

You can rest assured that the agents at ContractorsLiability.Com can get you the right policy you need.

The post What is A CG 20 10 Additional Insured appeared first on Contractors Liability.

Unlocking California’s Construction Potential: Your Guide to the General Contractor License

Are you considering becoming a general contractor in California? If so, it’s essential to understand the licensing requirements in order to operate legally in the state. In this article, we’ll delve into the California general contractor license requirements, providing you with the information you need to kickstart your construction career.

Navigate the ins and outs of obtaining a General Contractor License in California. From prerequisites to benefits, this comprehensive guide has you covered.

California General Contractor License Requirements

Applicants with one or more employees must provide a certificate of insurance verifying workers’ compensation insurance coverage. Liability insurance, with an aggregate limit of $1 million, for licenses with five or fewer persons listed as personnel; plus an additional $100,000 for each additional personnel listed on the license; not to exceed $5 million total (LLC licenses only).

Insurance Requirements for General Contractor License Applicants in California:

• Workers’ Compensation Insurance:

• Who Needs It? All applicants who have one or more employees.
• Purpose: This insurance ensures that if an employee gets injured on the job, their medical expenses and lost wages will be covered.
• Documentation: Applicants must provide a certificate of insurance as proof of workers’ compensation insurance coverage.

• Liability Insurance:

• Who Needs It? This requirement is specific to LLC licenses.
• Coverage Limits:

• For licenses with five or fewer persons listed as personnel: The aggregate limit should be $1 million.
• For each additional personnel listed on the license beyond the initial five: An additional coverage of $100,000 is required.

• Maximum Coverage Limit: The total liability insurance coverage should not exceed $5 million, regardless of the number of personnel listed on the license.
• Purpose: Liability insurance protects the licensed entity from claims resulting from injuries and damages to other people or property.

Bonding Requirements for Contractors in California:

• Contractor’s Bond:

• Amount: $15,000
• Who Needs It? All contractors operating in California.
• Purpose: This bond is a financial guarantee that contractors will adhere to the regulations and standards set by the state. It serves as a protection for consumers against potential financial loss due to a contractor’s failure to complete a job as agreed or any other contractual breaches.
• Where to File: The bond must be on file with the California Contractors State License Board (CSLB).

• Qualifying Individual’s Bond:

• Amount: $12,500
• Who Needs It? Contractors that are qualified by a responsible managing employee. This is in addition to the standard contractor’s bond.
• Purpose: This bond ensures that the responsible managing employee upholds their duties and responsibilities in line with state regulations. It provides an added layer of protection for consumers when a managing employee is the qualifying individual for the contractor license.
• Where to File: Just like the contractor’s bond, this bond must also be filed with the CSLB.

All LLC licenses are required to obtain a $100,000 surety bond as well. This bond requires financial statements and excellent credit to obtain. If you are just starting out this can be very difficult and expensive to obtain. You should look into the possibility of forming some other type of entity. Advice of an attorney is advised.

Qualifying Experience for a General Contractor License

One of the key requirements for obtaining a general contractor license in California is having the necessary qualifying experience. The CSLB requires applicants to have at least four years of experience working in the construction industry. This experience must be within the last ten years and in a supervisory role, where you were responsible for critical construction decisions.

It’s important to note that the CSLB defines experience broadly, allowing for a combination of various types of construction-related work to meet the requirements. This can include experience gained through employment, self-employment, apprenticeship programs, or even military service. However, it’s crucial to provide detailed documentation of your experience, including references, job descriptions, and proof of employment, to support your application.

Application Process for a General Contractor License

The application process for obtaining a general contractor license in California involves several steps. First, you need to complete and submit the license application form, along with the required supporting documents. These documents typically include proof of qualifying experience, educational qualifications, and financial responsibility.

Once your application is submitted, the CSLB will review it to ensure that you meet all the requirements. This review process may take several weeks or even months, depending on the workload of the CSLB. It’s important to be patient during this stage and to provide any additional information or documentation requested by the CSLB promptly.

Exam Preparation for the General Contractor License

Passing a licensing exam is a critical requirement for obtaining a general contractor license in California. The CSLB administers a standardized exam that assesses your knowledge and understanding of construction laws, regulations, and best practices. It’s essential to dedicate time to prepare for the exam to increase your chances of success.

There are various resources available to help you prepare for the licensing exam. These include study guides, practice exams, and exam prep courses. Additionally, networking with other licensed contractors or joining industry associations can provide valuable insights and study resources.

Examination Requirements for Contractor License Qualifiers in California:

• Law and Business Exam:

• Who Needs It? Every qualifier for a contractor license in California.
• Purpose: This exam assesses the qualifier’s understanding of California’s laws and business practices related to the construction industry. It ensures that contractors operate ethically, legally, and are well-versed in the state’s business regulations.

• Trade Exam:

• Who Must Take It? The qualifier for a contractor license, unless they are eligible for an exam waiver based on specific criteria set by the state.
• Purpose: The trade exam evaluates the qualifier’s technical knowledge and skills in their specific trade or field of construction. It ensures that contractors have the necessary expertise to execute projects safely and efficiently.
• Exceptions:

• C-61 Limited Specialty License: Qualifiers for this particular license are exempt from taking the trade exam. The C-61 license covers specific, limited specialty fields within the construction industry.

• Exam Waiver:

• Eligibility: Some qualifiers might be eligible for a waiver from taking one or both exams. The waiver criteria can include factors like prior experience, previous licensure, or other state-recognized credentials.
• Purpose: The waiver system acknowledges the expertise of individuals who have demonstrated their proficiency in the trade or have met specific state requirements, eliminating the need for redundant testing.

Maintaining and Renewing a General Contractor License in California

Once you have obtained your general contractor license in California, it’s important to understand the requirements for maintaining and renewing it. The CSLB requires licensed contractors to renew their licenses every two years. To renew your license, you must complete a renewal application and pay the required fee.

In addition to license renewal, you are also responsible for maintaining your license by complying with certain obligations. This includes obtaining and maintaining valid liability insurance and worker’s compensation coverage. Failure to meet these obligations can result in the suspension or revocation of your license.

Access California Contractor License Application Forms

To access California Contractor License Application Forms, you can visit the website of the Contractors State License Board (CSLB) at https://www.cslb.ca.gov/

On the CSLB website, click on the “Forms” tab. This will take you to a page where you can download all of the necessary forms for applying for a contractor license in California.

Visit Official Website

The following are the most common contractor license application forms:

Visit Official Website

• Application for Original Contractor License (Form 13A-1A)
• Certification of Work Experience (Form 13A-3)
• Construction Project Experience (Form 13A-4)
• Disclosure Statement Regarding (Form 13A-5)
• Accommodation Requests for Examination (Form 13A-6)

You may also need to complete additional forms, depending on the specific type of contractor license you are applying for. For example, if you are applying for a license to perform asbestos-related contracting, you will also need to complete the Asbestos Certification Application (Form AC-1).

Once you have downloaded the necessary forms, you can complete them electronically or print them out and fill them in by hand. Once you have completed the forms, you will need to mail them to the CSLB, along with the required application fee and any other supporting documentation.

Please note that the Contractors State License Board (CSLB) also offers a variety of online services to help you with the contractor license application process. For example, you can create an online account to track the status of your application and view your license information. You can also use the CSLB’s online database to find licensed contractors in your area.

Required documents for the application

In addition to the completed application forms, you will need to provide various supporting documents to demonstrate your eligibility for a contractor license in California. The specific documents required may vary depending on your license classification and individual circumstances. However, some common documents that you may need to include are:

• Proof of work experience: You will need to provide documentation, such as pay stubs, tax returns, or employer verification letters, to substantiate your work experience.
• Proof of education: If you have completed any formal education or training programs related to the construction industry, you will need to provide copies of your certificates or transcripts.
• Financial statements: The CSLB requires applicants to submit financial statements, such as balance sheets and income statements, to demonstrate their financial stability.

• Proof of insurance: You will need to obtain liability insurance coverage and provide proof of insurance to the CSLB.
• Contractor’s bond: A contractor’s bond is a form of financial guarantee that protects clients in case of any issues with the contractor’s work. You will need to obtain a contractor’s bond and provide proof of the bond to the CSLB.

• Identification documents: You may be required to provide copies of your driver’s license, passport, or other identification documents to verify your identity.

It’s essential to review the CSLB’s website and carefully read the application instructions to determine the specific documents required for your license classification. Make sure you gather all the necessary documents and organize them in a clear and concise manner before submitting your application.

How long does it take to process a contractor license application?

The processing time for a contractor license application in California can vary depending on various factors, including the volume of applications received and the completeness of your application. On average, the CSLB aims to process applications within 12 to 16 weeks.

To expedite the processing time, it’s crucial to submit a complete and accurate application, including all the required supporting documents. Any errors or omissions in your application can result in delays as the CSLB may need to request additional information or clarification.

It’s important to note that the processing time may be longer if your application requires additional review or if there are any issues with your documentation. Therefore, it’s advisable to submit your application well in advance of any project deadlines to allow for sufficient processing time.

The post General Contractor License California appeared first on Contractors Liability.

However, if you are operating your contracting business without the proper insurance that is exactly what you are doing. You are essentially betting everything you own that you will not have any type of claim. The worst thing is the claim does not even have to have merit.

If you get sued you will still have to pay attorney fees to defend yourself and your business.

It is important to remember that even if the court rules in your favor you will still be out the costs of your legal defense.

So keep reading and I will explain to you how to protect yourself and your business. I will also provide insider tips that can save you money, differentiate you from your competitors, and increase your bottom line substantially.

As a contractor what are the worst situations that could happen to you or your business is uninsured?

• You might be denied the opportunity to place a bid or be considered for a contract, due to lack of appropriate insurance.
• If regulations in your State require you to possess insurance, you may face hefty fines, or risk losing your business license.
• An accident or incident while on the job may cause physical harm or other forms of damage to clients or third parties. If you do not have insurance you will have to pay the legal costs and any judgments yourself.
• If one of your workers is injured on the job you can be liable for large fines and even criminal prosecution if you do not have workers compensation insurance. This is required in almost every State if you have employees.

Even the most established businesses would be crippled by major claims against their business. Even if you win the case, the legal fees to defend the case are simply too much for most contractors to afford.

By obtaining insurance coverage, you are transferring these risks against your enterprise to an insurance company.

In your line of business, you are faced with risks. Some are obvious, while others are totally unforeseen. These unforeseen circumstances are what you should be shielding your business against by obtaining the forms of coverage that apply the most to you.

General contractors often need to meet insurance requirements surrounding liability claims, like property damage or theft, as well as workers compensation. But there are a few others that should at the very least be considered, in order to practice effective risk management. The six types of insurance we suggest you look into when creating your own insurance plan are listed below.

The Six Types of Insurance

1. General Liability Insurance

If your company is deemed legally responsible for bodily injuries or damages to client property, you should expect to bear the financial costs associated with those incidents. General liability coverage protects you in such cases, as it transfers the costs associated with these claims away from your business and to the insurer.

An example is you are roofing a client’s home and one of your tools that you left unsecured drops onto the windshield of your client’s car parked close by. In this case, your general liability is what will handle the claims that will be raised, including any legal expenses.

2. Worker’s compensation Insurance

Worker’s compensation insurance offers benefits and protections for workers injured on the job. Their medical expenses and their wages are covered by this kind of insurance.

In the construction industry, an accident can place your employees at a very high risk of hospitalization. During this time, they are incapable of working hence no income. With a worker’s compensation policy their medical bills and a portion of their will be paid.

By having this coverage your employees will receive the peace of mind they need in order to work effectively and safely. You will have the security in knowing that you are covered and are not in violation of any State laws.

3. Commercial Auto Insurance

The insurance coverage we have spoken of thus far protects third-party property for the most part. Commercial auto, however, focuses on the automotive property of the insured itself.

While this is not specific to contractors, it is a very important policy for contractors who need to use vehicles to transport tools and employees as part of their project. If in the course of construction you use vehicles, these vehicles have to be commercially insured.

The commercial auto policy is designed to address damages caused by the vehicle or damages made to the vehicle itself. It also covers injuries to persons in case of an accident.

4. Inland Marine Insurance

lnland Marine insurance is designed to protect contractors’ property. Damages to your property, plus loss of tools and other working materials, will be compensated by Inland Marine Insurance.

A contractor without their tools cannot achieve much since most of their work is done with them. Therefore, having this type of protection acts as a kind of commercial property insurance that the insured can use to keep their business assets in working order.

5. Professional Liability

This type of insurance is mostly used by consultants, architects, and design and build contractors to protect themselves against claims made by clients.

Contractors who do this work alongside their work in the trade, need to take on this policy to obtain full coverage in regards to customer dissatisfaction, design flaws, and failure to properly execute plans.

A professional liability policy also covers you against negligence on your part while undertaking your duties. Let’s say that a contractor paints on a wet wall. Within minutes, the paint starts to peel off.

Your negligence in not checking if the wall was fit for painting cost the client money and time, especially if they had to temporarily suspend their business availability to take on construction projects which require your services. In this case, the claims raised will be addressed by the professional liability insurance policy.

6. Umbrella Insurance

Umbrella insurance is simply additional liability insurance that works by providing Insurance beyond the limits of your other liability policy limits. It is sold in increments of $1 million.

Thoughts on Being Properly Insured

Contractors must be well insured for the smooth running of their business. A well-insured contractor is appealing to clients because the certificate of insurance proves to them that they will be compensated promptly and professionally, in case something goes wrong.

Workers also are likely to remain employed with a construction business longer when that business has the proper insurance. In case they are in an accident, they can rest easy knowing the medical bills will be taken care of, in addition to income replacement for the days they are unable to work.

Contractors Liability.com has the capability to provide quotes for the hard-to-place risks and get you insured quickly and conveniently. We have the experience to analyze and recommend the appropriate Contractors Insurance Coverage.

Best of all, you can get a free, no-obligation quote in minutes. If you have any questions about this or any other insurance needs feel free to contact the knowledgeable agents at ContractorsLiability.com at 773-985-2176 or go to our website for a QUOTE. We offer 5 Star customer service and can often get you insured in under an hour.

The post The 6 Types of Insurance General Contractors Must Have appeared first on Contractors Liability.

If you keep reading these tips will make sure if you file a claim, you can get any issues resolved quickly. 

In this day and age, you need insurance if you roof. Even the most careful people have accidents and you need insurance for protection.

The following advice will help your insurer pay quickly for any damage that your roofing company may have caused. A roof insurance claim can be rather difficult if the insurance claims are not done appropriately.

Here are five steps you can follow to file a claim with your insurance provider to handle insurance claims. Most insurance companies have the same claims process, but you may need to check with your insurance company to see if they have a different insurance claim process. 

If you fail to follow these procedures, the insurance company may deny coverage. Your business will have to cover the costs of repairs for all the damaged roof sections caused by the roof repairs.

1. Check documents and capture images

The first thing you must do before contacting the insurance adjuster and filing a roof claim is to document everything. Take pictures of the roof issues. Get on the roof and inspect it. Try to gather supporting evidence that any roof damage issues were not caused by your roofing company.

A Roofing contractor is often blamed by a homeowner and Homeowners Insurance Companies for all the damage that exists, even though some of the damage was pre-existing.  Just as there are unscrupulous contractors, there also are homeowners who will attempt to have a contractor or a roofing contractor’s insurance company pay for damages that were not caused by your work. 

Many times they will not want to file homeowners insurance claims. They will try to shift the blame onto the insurance of the roofing contractor so that the insurance claim does not affect their homeowner’s insurance.

Insurance adjusters make come out and investigate storm damage from things like hail damage after a hail storm and wind damage from high winds. Their homeowner’s policy may not cover the cost for the entire roof, or they may only pay actual cash value (the depreciated value) and not the cost of the new roof as a result of the roof damage claim. While other homeowners insurance companies will value the insurance payment at the replacement cost of a new roof.

It is also in contractors’ best interest to make sure that they do a proper inspection of the repair and make sure they do any necessary repairs to prevent further damage after they inspect the area and materials

2. See if you can work something out

The first thing you must do before contacting the insurance adjuster and filing a roof claim is to document everything. Take pictures of the roof issues. Get on the roof and inspect it. Try to gather supporting evidence that any roof damage issues were not caused by your roofing company.

A Roofing contractor is often blamed by a homeowner and Homeowners Insurance Companies for all the damage that exists, even though some of the damage was pre-existing.  Just as there are unscrupulous contractors, there also are homeowners who will attempt to have a contractor or a roofing contractors insurance companies pay for damages that were not caused by your work. 

Many times they will not want to file homeowners insurance claims. They will try to shift the blame onto the insurance of the roofing contractor so that the insurance claim does not affect their homeowner’s insurance.

Insurance adjusters make come out and investigate storm damage from things like hail damage after a hail storm and wind damage from high winds. Their homeowner’s policy may not cover the cost for the entire roof, or they may only pay actual cash value (the depreciated value) and not the cost of the new roof as a result of the roof damage claim. While other homeowners insurance companies will value the insurance payment at the replacement cost of a new roof.

It is also in contractors’ best interest to make sure that they do a proper inspection of the repair and make sure they do any necessary repairs to prevent further damage after they inspect the area and materials

3. File your claim

If you are not able to work things out, you should file insurance claims with your insurance company. You should notify the insurance company promptly.

Once the claims process is started, you should offer proof to the insurance company. Of the work you did. You should pay particular attention to inspecting areas of the damaged roof that are subject to the claim.

It is also important to know what you are covered for.  There are a number of common claims that are not covered by most insurance companies. You need to know what your insurance company will cover. 

Pro Tip

The best time to find out what your insurance company may cover and does not cover is when you purchase the policy. You need to ask your agent what is covered. You also need to be an educated roofing contractor when buying insurance to find out what is not covered.

There is nothing worse than the surprise of finding out that the type of claim made by a homeowner has no coverage. These amounts will need to be paid from your own pocket

4. Make arrangements for an adjuster’s visit

An adjuster will be assigned to you by your insurance company. You should make necessary arrangements for him to come and assess the damage (Do not forget to give them accurate contact information for your business).

You should schedule a mutually agreeable time for an inspection. You, as the contractor, should be the contact. You should be there when the claims adjuster is there during the inspection. During the visit, the roof and related areas will be inspected to see if the insurance company will pay the claim.

You, as the contractor, did the repair to the roof, so you are the most knowledgeable about the roof claim. You have the ability to point things out on the roof that may determine whether or not an insurance claim is paid.

You should go over with the insurance adjuster what the approved repairs between the contractor and homeowner were. The insurance adjuster will inspect the repair and decide whether there is coverage. If coverage is approved, the claim may be paid. The homeowner may not be satisfied with the amount and should obtain multiple estimates that need to be submitted to the insurance company before a contractor can be hired to repair the roof or even a roof replacement.

5. Do necessary work

As the contractor, you can do the necessary replacement that may be needed. You should also follow up with any items requested by the insurance company regarding their roof inspection.

As a roofer, you should take pride in having roof insurance coverage.  Customers often use social media sites to hire roofing contractors in today’s digital world. If you have negative reviews, it can greatly affect your bottom line.

Showing you have insurance and you care about the work you do will go a long way in making you successful in the Roof Business.

You already know how to roof, so are you ready to learn more about insurance and protect your business? Get in touch with us or get a free quote today!

The post 5 Steps to File a Roofing Insurance Claim appeared first on Contractors Liability.

General Contractor’s liability insurance offers the perfect solution to this. Thus, where the policy holder is responsible, the coverage extends for damages and losses caused by work-related accidents.

Therefore, if you are thinking of joining the trade and becoming a General Contractor or need more insurance coverage, this guide is for you.

Do I need insurance as a General Contractor?

As a result, to become a certified and qualified General Contractor, having property damage insurance is a requirement in most states.

What is property damage insurance?

This type of insurance, or liability, covers you as a contractor against any claims of damage by clients or third parties, where you were at fault.

Consequently, claims can arise from any number of incidents. If, for instance, you are working on a roof with building material and something falls, injuring a person walking by at the time. Therefore, you are liable for any injuries sustained by them.

Thus your policy will cover the expenses saving you from paying upfront, out of pocket.

Coverage

As a result, General Contractor’s liability covers the vital points of a damage claim. However, one policy is generally not enough, and this insurance does not cover all areas.

What is the coverage

Coverage includes:

• Property damage
• Bodily injury
• Medical payments
• Harm to reputation
• Damage to your rented premises
• Advertising mistakes

What’s not

Areas not covered include:

• Professional mistakes
• Employee injuries
• Punitive damages
• Intentional acts
• Your work
• Auto-related coverage

Other property damage policies

Further, a General Contractor’s insurance policy covers many areas of your business. However, it is always wise to fill in the insurance gaps if necessary.

Look into these policies to optimize your insurance coverage.

Commercial vehicle property damage

Hence, these auto insurance policies cover third party vehicles in an accident when using your business vehicle.

Commercial property damage

Thus this policy covers your commercial premises and its contents, including equipment against damages and loss due to theft, breakages, unexpected fires, and vandalism.

Calculating costs

As a result, each contractor will have different costs associated with their insurance policy and premiums.

Various factors help calculate costs, including:

• Number of employees
• Revenue
• Type of work
• Amount of coverage required
• Company’s location
• History of loss

To find out the estimated cost for your contractor business-coverage, contact an agent at Contractors Liability for an inquiry.

Boost your coverage!

Call Contractors Liability at 866 225 1950 today

Furthermore, as a General Contractor, consider your insurance coverage requirements to keep your business afloat in times of need.

With the right property damage insurance, you will stand out from the competition. You will also have taken the proper steps to ensure the well-being of your business. Call 866 225 1950 for assistance.

The post Guide to Property Damage Insurance for General Contractors appeared first on Contractors Liability.

3 Things you should know about Contractors Liability

To simplify things, we have come up with this detailed guide on all you should know about contractor insurance.

1. General Liability

This is undeniably the most common type of contractor insurance. It covers you as a contractor, your business, and your assets. General Liability insurance usually covers your high-risk areas such as property damage, client injury, and reputation injury.

While you will require more insurance policies as your business grows, General Liability insurance will cover all your basics. It is enough to protect you from most lawsuit costs. In fact, in some states, contractors are required by law to have a minimum coverage of General Liability insurance to be eligible to contract out.

Any contractor that works on several project builds will want to have General Liability insurance in case of a site mishap. The last thing you want is to lock yourself out of bidding on a project just because you lack insurance.

2. Commercial Auto

As far as small contractor business insurance policies go, Commercial Auto coverage is one of the most practical. It covers repairs, lawsuits, and medical expenses related to your work vehicle. It also covers any injuries to uninsured motorists caused by your vehicle.

Whether you use your vehicle to transport equipment to project sites or to get your employees from one site to another, Commercial Auto coverage is a must-have. Even if you only use this insurance policy a couple of times a year, it will save you cash in the long run.

A Commercial Auto insurance policy usually covers a variety of vehicle types such as pickups, dump trucks, cement mixers, and even utility trailers.

3. Workers Compensation

Let’s be honest, the construction business is a risky one. No matter how careful you are, you and your employees are constantly at risk of bodily injury and work-related illnesses. It is therefore not surprising, that some states even require Workers Compensation by law.

If one of your sub-contractors gets hurt, this policy caters for associated medical costs, recovery costs, and missed wages. It also covers funeral and death benefits. And if the subcontractor decides to sue you for injuries, a small contractor business insurance policy covers that as well.

Given how much the Coronavirus pandemic has taught us about the importance of our health, this is a must-have insurance policy in 2020 that your business simply can’t be without.

Contractors Liability insurance for your small contractor business

No matter which small contractor business insurance policy you want, we have the best rates, duly adjusted to suit a post-COVID-19 economy. Our insurance agents are always ready to provide you with clear quotes and to answer your questions. Call a Contractors Liability consultant at 866-225-1950, and we’ll sort all your insurance needs out.

The post Contractor Insurance. A Small Business Owner’s Guide appeared first on Contractors Liability.

The Bureau of Labor Statistics 2019 report made it clear that the construction industry has the lowest survival rate in the US. Only 35% of construction businesses survive the fifth year after they start their operations. Five years in a high competition industry is a big achievement, but it does not guarantee that your company will make it through the next five years.

According to a recent survey report, insurance protection increases the chances of survival of new construction companies by 30%. Why is that so?

Bureau of Labor Statistics reports show that 75% of small construction businesses fail to survive after the first year and close their operations due to financial vulnerability and poor risk management. However, insurance covers help you in dealing with both of the factors mentioned above.

Credibility of Business

Contractor Business Insurance is a must for small construction businesses that want to beat the market’s unfavorable odds. New construction companies are less trustable; hence they do not get sufficient projects to make their ends meet. As per a ZDNet survey, 85% of American citizens trust companies with a good reputation. Lack of insurance protection can make the majority of your clients suspicious of your operational capabilities and professionalism. To earn your clients’ trust, you need every single benefit for your business, and insurance is one of your supporting factors.

A foolproof Risk Management Strategy

You cannot expect your construction company to succeed unless you have a practical strategy to deal with unforeseeable circumstances. Risk management strategy involves the following steps:

• Risk identification
• Assessment of risk
• Decision making to control or manage risk
• Implementation of controlling tools
• Close monitoring of the implementation of the risk management plan

Insurance is a tool that helps you in controlling the most obvious risks to a new construction business. You never know what risk you are going to face the next day on your construction site.

Contractors Business Insurance Financial Compensation

Insurance is a financial cover that protects construction businesses from the devastating financial setbacks due to work-related accidents. However, you cannot buy a ready-made insurance plan for your construction business. Every construction company needs a unique risk insurance plan according to the needs of their business. The 2019 Willis Tower Watson survey report shows that insurance claims of more than $230 billion were made by the contractors, which is a big figure. These claims were made because construction businesses work in the most volatile environment, and you cannot control uncertainty.

Get insurance protection now!

Despite these 3 benefits of insurance protection, most small contractors either assume insurance as a liability or are unaware of the benefits of insurance.

Call Contractors Liability on 866-225-1950 to learn about the Contractors’ Business Insurance.

The post 3 Advantages of Small Contractor Business Insurance Protection appeared first on Contractors Liability.

This is where construction General Liability insurance protection comes into play. This insurance policy protects you from the hazards mentioned above. It will also help you find more clients. They do not have to worry about any heavy financial losses while working with you. In this article, we’re going to take a look at General Liability insurance and what it entails.

The benefits

The first and most obvious benefit of Construction General Liability Insurance protection policy for contractors is that it will protect you, your employees, and your subcontractors. This is in case there is an injury, property damage, and any damage done to a third party through advertising and contractor marketing. Moreover, you’ll have coverage in terms of costs and damages after a judgment. You can use it to cover your court expenses, witness fees, attorney fees and more.

Ultimately, contractors liability insurance gives you the peace of mind you need to run your business smoothly and effectively.

What Contractors Liability cover?

In addition to property damage, injury, personal damage and advertising/marketing damages, construction General Liability Insurance protection also offers coverage for completed services and products. For example, if you’ve built a staircase for a client, and one day, a stair breaks and the client is injured, they have a case against you.

With General Liability insurance, you have coverage for both the medical and legal costs. You will also be protected against several other nasty cases. These include copyright infringement, libel, slander and stolen ideas.

Not only that, but you can cover the actions of your employees and subcontractors. After all, courts hold the general contractor liable for anything that goes wrong during and after a project.

How are insurance rates calculated?

A few factors decide your insurance rates. These factors will determine whether you have to pay hundreds of dollars or thousands of dollars for your coverage, and they are pretty uniform across the board. The provider will take into account your location, number of employees, the type of work done, and the revenue of the company, along with your claim history.

Your deductible will also have an impact on your rates, with higher deductibles leading to lower rates, and vice versa.

Working with the right provider

Finding the right provider is as important as having Construction General Liability insurance protection because the right provider will help you pick the best coverage for your budget and necessities.

With a strong customer support team and insurance agents, the right provider will have you covered at all times for the best price. If you would like to find out more about our insurance offer, contact Contractors Liability at 866-225-1950.

The post What is Construction General Liability Insurance Protection? appeared first on Contractors Liability.

Without proper insurance, all these unfortunate events can spell disaster. But how can you find the best policy for your business? In this article, we’re going to find out.

Find out what your policy covers

A construction General Liability Insurance protection policy will cover some of the damages that your company is responsible for. This may include third-party claims for medical bills and legal fees. All of these can be quite expensive. Even when we’re talking about small mistakes.

Most of these losses will come from third-party property damage and injury claims. However, with General Liability insurance, you will also be covered in the case of advertising injury or reputational harm.

Calculate your risk

Risk changes from company to company. Small companies that do not operate a lot of machinery, and work in a relatively safe area of the industry, do not face as much risk as roofers, who will need more coverage. The process of calculating risk might seem complicated at first. Your insurance provider should guide you through the steps. He’ll help you pick the best coverage options for your business and budget.

Always make sure that you have the coverage you need

Some newer businesses will always be tempted to delay buying the coverage they need. This can be a very bad idea. While you may not have an accident or any disputes for a while, you may end up blacklisted by other businesses, or lose clients, because you do not have insurance. After all, it makes sense – in the construction industry, liability claims can go into the millions of dollars. To avoid any big problems, it’s best to get insurance as quickly as possible.

Make use of extensions

General Liability insurance offers ample coverage. However, there are some areas in which it does not. For example, if you have officers and directors in your company, their actions will not be covered against liability. So if one of your company’s officers is found liable for incorrect investment decisions, biased hiring, gross negligence, or unlawful acts, you will not be covered.

Other areas not covered by your construction General Liability Insurance protection include omissions and errors, intentional damage, and criminal prosecution. If these are risks that you believe you will face in the future, you can be safe by adding extensions to your original policy.

Is it time you bought construction General Liability Insurance protection?

Being uninsured or underinsured can be very dangerous for your contractor business. Lawsuits can come at you during, and even after a project. As such, you want to be as protected as possible at the best price. At Contractors Liability we offer the best-priced insurance packages for contractors. If you would like to find out more, contact us today at 866-225-1950.

The post Advice on Construction General Liability Insurance Protection appeared first on Contractors Liability.

How to protect your tools

Let’s look at which policies protect your construction tools. As a point of reference, we’ll also look at another policy that does not protect your tools. This way you’ll know what to ask for when you speak with your insurance consultants.

The 3 policies we’ll look at are:

• Builder’s Risk Insurance
• Inland Marine Insurance
• Contractor Liability Insurance

Builder’s Risk Insurance:

Generally, Builder’s Risk Insurance policies offer coverage for damages caused by fire, weather, and vandalism. Yours can also provide theft protection for your tools and equipment while they’re on the job site, in storage off-site, or in transit.

So you’re probably asking yourself, why don’t I have this policy already? Builder’s Risk is Course of Construction insurance because it is project-based. This means that you will invest in coverage for a specific project. When the project is complete, tthe coverage ends.  In other words, Builder’s Risk does not protect your tools for longer than the project duration.

To protect your tools on a day-to-day basis, you should invest in Inland Marine Insurance – we’ll look into this next. Whilst both Builder’s Risk and Inland Marine protect your tools, Builder’s Risk offers value that Inland Marine does not.

The real benefits of Builder’s Risk Insurance are property replacement and reimbursement of profits lost.

Inland Marine Insurance

Inland Marine goes wherever you go. Cover your tools for all your projects, not just one.  This includes theft from the building site or in transit. This is very important when you work on several sites.

Every Builder’s Risk Insurance policy is different because every project is different. Protection for tools, equipment and building materials varies from policy to policy. It should be double-checked.

Contractors Liability Insurance

Liability insurance gives coverage against third party claims. In other words, it pays out when somebody else sues you for damages. This does not protect your tools and equipment. As, if these get stolen or damaged the financial loss is not theirs.

Let’s take a look at some of the damages your liability insurance will cover:

• Property damage: should you or your employees damage someone else’s property. For instance, the neighbor’s garden furniture or your client’s vehicle parked on the street.
• Bodily injury: should someone other than yourself or your employees be injured on your work site or as a result of your work. For example: a visitor to the site is hit by falling building material.

Contractors Liability Insurance is very important for builders. In fact, it is mandated by law in most states. But, as said, it does not provide coverage for your tools and equipment.

Construction Company Insurance

Get professional advice about which policies should be included in your Construction Company Insurance program. We are happy to assist. Speak with the consultants at Contractors Liability on 866-225-1950

The post Does Construction Company Insurance Protect Your Tools? appeared first on Contractors Liability.

These are just a few, among many examples of how construction continues to be a risky business. Construction insurance companies like Contractors Liability, help you protect your investment. Specialized coverages can be tailor-made for your particular project. This makes  Builder’s Risk insurance an essential policy for your business.

Back to Basics with Builder’s Risk

What is covered by my Builder’s Risk Insurance? What isn’t covered by my policy? Who benefits from the policy? Who is the insurance for? These are all important questions that our experts at Contractors Liability will answer for you. The key question among them is, who actually benefits from Builder’s Risk Insurance?

Are Construction Insurance Companies The Real Beneficiaries?

Builder’s Risk Insurance is one of the cheapest policies available for contractors. Typically, your policy will only be between 1% to 5% of the total project cost. For that price, you get coverage not only for the structure you are building, but also for the equipment being used for it. Many Builder’s Risk policies will also include reimbursements for soft costs that can really add up.  Soft costs can include architectural, engineering, financing, and legal fees. It is easy to see that when it comes to building projects, construction insurance companies are offering you a sweet deal.

What’s In It For Me?

At a time when projects are getting bigger and more complicated, Builder’s Risk Insurance provides some much-needed security. The coverage offered by construction insurance companies protects the insurable interests of the owner, general contractor, and all subcontractors. In addition to standard building and equipment protection, Builder’s Risk coverage includes:

1. Debris removal after a construction accident
2. Contamination cleanup due to fire or other incidents
3. Loss of valuable documents such as blueprints
4. Delays or loss due to building code changes.

Builder’s Risk offers assured blanket protection against all of the most common construction risks. This makes coverage a must-have for all builders and contractors. Your Builder’s Risk policy also offers a unique advantage in that it requires almost no underwriting. As a result, your policy will take effect within hours of purchase.  Allowing you to begin work without any undue delays.

Insurance From Construction Experts

You have everything to gain and, quite literally, nothing to lose with a Builder’s Risk Insurance policy. Contractors Liability has more than two decades of experience in crafting custom insurance policies for large as well as regional contractors. We are an insurance provider with excellent reviews after-sales service. Give us a call today to get your Builder’s Risk Insurance at 888-819-1228.

The post Top Construction Insurance Companies Recommend Builder’s Risk appeared first on Contractors Liability.

Builder’s Risk Basics

There is no denying that Builder’s Risk Insurance is economically attractive. Premiums are only between 1% to 5% of your project’s cost. However, it could cost you dearly if you don’t choose the right Construction Insurance policy.We at Contractors Liability have 20+ years of experience in Construction Insurance. We provide tailored Builder’s Risk Insurance policies that meet your needs and protect your business. Our trusted industry experts always help you make the right decision.

Frequently Asked Questions About Builder’s Risk Insurance

What is Covered by Builder’s Risk Insurance?

Builder’s Risk Insurance is specialized coverage that protects the building under construction and the equipment used to build it. Your Construction Insurance policy will also cover:

• Profits.
• Debris removal.
• Contamination cleanup.
• Loss of valuable documents such as blueprints.
• Delays or losses due to building code changes.

How Much Will Builder’s Risk Cost?

The project cost will be the most significant determining factor for your insurance cost. Most insurance providers charge anywhere between 1% to 5% of the total project cost. However, there are a few other factors that you should consider as well. Risk increases as your project’s length increases, meaning that Construction Insurance costs will be higher for long-term projects. Construction in areas prone to natural disasters will also lead to higher insurance premiums. Projects that use frame structures will also be more costly because such structures are more susceptible to wind and fire damage.

How Can You Save Money On Builder’s Risk Insurance?

• Have a solid safety record: Your insurance agent will use your safety track record to compute your premiums. Therefore, if your business has made claims in the recent past, you will more likely pay higher premiums. Emphasize safety measures to workers on your construction sites. Prevention is better and cheaper than cure.
• Assess your risks: There is no one-cover-fits-all for Builder’s Risk. Take the time to assess the risk you should cover based on the type of construction, the geographical location, and weather patterns in that area.
• Get a tailor-made cover: Select an insurance broker or agent who understands the nature of your construction business and the geographical area where you are situated. You get the best Builder’s Risk insurance advice on cost savings from an agent familiar with what your state and region’s insurance companies have to offer.

Who Should Buy Builder’s Risk Insurance?

All new construction and most major renovation projects require Builder’s Risk Insurance. In addition to the builder, other parties exposed to potential losses may also have an insurable interest. However, there is no need to buy separate insurance. One policy will typically include the owner, general contractor, and subcontractors.

When Does Coverage Begin and End?

Builder’s Risk Construction Insurance usually takes effect on the date when all contracts are signed. However, terms can be altered to choose a particular date. As far as the coverage end is concerned, your policy will specify the conditions. Typically, this will happen when the building is handed over to the other party or put to its intended use.

Do You Need Policy Extensions?

The cheaper the cover, the lower the premiums; true. However, you will find that cheaper coverage limits the circumstances and types of damage, which may not protect your business well. A policy extension will include damage generally excluded from Builder’s Risk coverage. You may wish to consider such an extension if you face higher risk, such as construction in an earthquake-prone or coastal area.

Do You Need Other Construction Insurance?

Yes, You do. Builder’s Risk will cover you for damages done to ongoing construction and materials. However, in case of injury to your employees or other people, you are not covered. For different kinds of damage, you need these coverages:

• General Contractor Liability: To protect your construction business from third-party claims on damage to property, injury, reputation, rented premises, and advertising mistakes.
• Commercial Auto Insurance: To protect your business from the cost of repairs to work vehicles, medical expenses for injured employees involved in car crashes, and claims made by uninsured motorists involved in accidents with your work vehicles.
• Workers Compensation: To protect your business and employees in case of injuries while on construction sites. This cover will pay medical bills, a percentage of lost wages, the cost of retraining if needed, or funeral expenses and death benefits in case of fatalities.

Construction Insurance Experts

Now that you know more about Builder’s Risk Insurance, you are ready to begin protecting your business. However, every construction project carries unique risks. Our experienced agents at Contractors Liability will help you get that unique policy for your project. Get started by giving us a call at 888-961-4558.

The post Builder’s Risk Construction Insurance FAQs appeared first on Contractors Liability.