The life of an Artisan Contractor is not an easy one. In states where laws are only getting stricter, artisan contractors insurance is being put in the spotlight. For those looking to limit and transfer exposure – now is the time.
Artisan Contractors Defined
An Artisan is defined as a contractor who does work in roofing, farming, air conditioning, electrical, plumbing, framing, fire sprinklers and other specialties. They are typically working under the supervision of a general contractor. They can also be involved in residential or commercial construction projects.
The Difficultly with Artisan Contractors Insurance
Artisans are specialty contractors; due to the highly specific nature of their work. This often makes it difficult purchasing affordable liability coverage. The level of work, as well as the tough legal environment in certain states, have increased the number of lawsuits against artisans in recent years. Most of the time it’s a construction defect claim, which negatively impacts artisan contractors.
The reason for varying liability for Artisans has to do with the agreements they make with general contractors. Usually, in order to procure work from a general contractor, they must agree to accept the transferred risk. By accepting this risk, they sometimes put themselves at a disadvantage from a legal standpoint because their liability insurance is very broad. Each time a general contractor transfers this risk the artisan becomes fully responsible. Mandating this transfer in risk makes procuring work very difficult for the artisan, unless they are willing to take on the burden or risk. The result of this is higher costs associated with liability insurance.
Artisan Contractors are asking legislators to enact laws establishing standards that clarify their rights and indemnity obligations regarding their own work. This would help diminish ambiguous laws that would hurt these contractors and give everyone an affordable choice for Artisan Contractors Insurance.
States that have harsher laws for artisans are Arizona, California, Colorado, Florida, Louisiana, New York, Nevada, Oregon, Texas and Washington. The five boroughs of NY, Manhattan, The Bronx, Brooklyn, Queens, and Staten Island, also contain specific sets of laws regarding artisans due to the high level of construction that goes on consistently. If there are any questions you still have regarding Artisan Contractors Insurance, please don’t hesitate to call us today. We would be more than happy to help you with all your business insurance needs.