General Contractor Insurance
Being a general contractor is a big deal. You are responsible for building something out of nothing but the imagination of an architect and the design of an engineer. You are charged with the creation of really valuable property and it’s your responsibility to protect that nothing and no one comes to harm while you’re in the process of construction. There are different types of General Contractor Insurance that you can receive so that when accidents and unfortunate incidents happen, you will be able to overcome them with ease.
Important General Contractor Insurance Policies
Before a general contractor can even begin to start on a project, he has to undergo the process of securing contractor bonds on the project. Contractor bonds are a way of guaranteeing that you will be able to bid on a project and after winning the bid, subsequently, start and finish the project. Contractor bonds are a safety precaution against unfortunate circumstances that can arise and leaving the client with an unfinished building or property. Contractor bonds are determined based on the cost of the project, its scope of work and its timetable among other conditions.
Another type of insurance for general contractors is the builder’s risk insurance. Once you have started a project, builders risk insurance will take effect until you finish the work and complete the job. For the duration of the project, your builder’s risk insurance will protect your property from vandalism, accidental losses, and other damages. If you also have to transport your materials and equipment from a different location, say a warehouse, and move them to the place of construction, they will also be covered under the insurance while they’re in transit.
A general contractor does not only protect his property and materials, but he most especially needs to protect his workers as well. Workers Comp Insurance is an integral part of your business as it will be used to protect you and your business against claims for damages resulting from injury or death to your workers while they’re on the job. The construction business is a high-risk profession and accidents are most likely to happen to workers even when they’re taking the necessary precautions. In cases where accidents still happen despite all the protection and safety precautions, you need to have workers compensation insurance to pay for medical expenses of the injured worker, to pay for his wages and salaries while he’s recovering and unable to work, to pay for any funeral expenses and death benefits to his family members if the accident caused his death and other compensatory benefits as specified in your coverage. If all these expenses are to be taken out of your own business profits, you may just as well become bankrupt because they can really mount up and take a toll on your cash flow
General liability insurance is also necessary if you want to be shielded from paying damages coming from claims of injured parties, specifically the public, who have been injured or whose property has been damaged as a result of your construction.
If you need to get more information about the General Contractor Insurance policies that are tailored for your business, you may call us at 1-us or request a quote online at your convenience.