Contractors Insurance No Comments

General Liability vs. Total Liability Coverage

The terms General Liability and Total Liability sound like exact synonyms. In the insurance industry, they are two completely different things.

Contractors purchasing a policy will definitely need some form of general liability coverage, but they may also want to extend that coverage with a higher policy limit. Total liability coverage adds to the total allowed sum of claims for not just general liability policies, but potentially for other coverage like worker’s compensation and commercial auto insurance. For this reason, total liability policies are often called “umbrella policies” since they increase the amount of coverage for several types of claims at once.

Still confused? Read on to learn more about the specific differences between general liability and total liability coverage. Read more

Contractors Insurance No Comments

Protecting Yourself from Lawsuits

Lawsuits are unfortunately all too common in the construction and contracting industry. Disputes can arise about billing, project completions and even the price customers are charged. When these disputes cannot be resolved in a friendly way, the offended party will often resort to a lawsuit to get what they want. The end result is protracted litigation, costing both parties thousands of dollars with no end in sight.

Contractors wanting to avoid this scenario can take the following precautions:  Read more

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Curb Your Employee Lawsuit Liability

No employer wants to deal with workers’ compensation claims or lawsuits for unsafe working conditions. We live in a litigious society, and only by taking great pains to create an ideal working environment can you protect yourself against such issues. By doing everything you can to prevent workplace incidents and injuries, you are not only protecting yourself from legal claims, but you are also doing the right thing. Here are some tips to reduce the chances of employee lawsuit liability.
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How an Indemnity Policy Can Make You Stronger Than Your Weakest Link

When you hire a subcontractor to complete a job, typically you hire someone you know. Someone who has a reputation for getting the job done well and on time. Still, there may be moments over the course of your career as a general contractor where you have to hire subcontractors that you are not familiar with. In those instances, you will need to be especially careful because, without the proper coverage, you could be found liable for the actions of your subcontractors. Here’s what you need to know about an indemnity policy.

What is an Indemnity Policy?

Contractors indemnity insurance was designed back in the 1990’s to combat certain limitations in liability insurance that left contractors exposed to unnecessary risk. Granted this risk was a little out of the ordinary as contractors began to take on more design build projects. Subjectivity, frustrated consumers and poor work by subcontractors all contributed to the creation of contractors indemnity insurance.

An indemnity policy will protect you, the general contractor, from liability that stems from an action or omission taken by your subcontractor. Long story short, if your subcontractor doesn’t follow through on their contractual obligations, you will not be held financially accountable. These policies aren’t entirely infallible and still have certain limitations that you will want to be aware of. Policy limitations are typically a result of negligence or failure to provide time notice of a claim but, such restrictions are usually dependent on your provider.

Who Needs an Indemnity Policy?

If you work as a General Contractor you will likely need some sort of contractors indemnity insurance. Construction jobs are very rarely a one man effort. It takes a team to get your project completed but, there is that saying that a team is only as strong as its’ weakest link. And your weakest link could ultimately end up costing you much more than just a game. An indemnity policy will keep you from having to bear the financial burden of your subcontractors when they manage to get into trouble.

If you have any further questions about an indemnity policy or if you would like to schedule a consultation please feel free to give us a call at 1-800-649-9094. We look forward to hearing from you!

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Why Edition Dates Matter for Additional Insured Endorsement

You’ve just been awarded a new job and receive the contract to be signed.  The contract has numerous insurance requirements, and, at first glance, you think you have what you need.  The contract requires that you carry a $1,000,000 Commercial General Liability (CGL) Policy and that you add the general contractor as an additional insured endorsement using the CG 20 10 11 85 endorsement.  You know that you have a $1,000,000 policy and that you’ve added others to your policy as an additional insured endorsement as well, so you sign the contract, thinking all is fine. Read more