What Everyone Ought To Know About GENERAL LIABILITY INSURANCE

A big expense factor in a contractor’s construction bid will be the price of the liability insurance for the project. The contractor’s existing general liability policy might not be sufficient to meet certain requirements of a specific job being bid for but upping the coverage on his regular liability insurance could leave the contractor in a grossly over-covered position after the job is performed. A per project policy is ideal for construction bid circumstances like this.

A per project liability insurance policy is exactly what it reads as. The contractor will get a liability quote for exactly the required amount and for only as long as the specific job is underway. This means the contractor will have the correct amount of insurance at the proper time. He will not have too little during the job and will not have too much after the work is completed either. Per project general liability is fantastic for a contractor’s general liability.

Two critical factors should be considered when looking at per project insurance. The first is the utmost payable amount and the second is the actuarial claim rate.

The individual or even more likely the corporation tendering out the bid will stipulate the minimum level of liability insurance requires. Suppose the mandatory insurable amount is for twenty million dollars. That total coverage could be necessary for the bid but during the general business of the contractor, perhaps ten million is a lot more than sufficient. A per project general liability package could be put in force simply for the term of the contract.

The other factor may be the actuarial. This is the incidence of claims for a specific type of application. For example, if the contractor does dangerous work like welding underwater the claim rates are much higher than work as an inside painter so the rate per thousand dollars worth of insurance will naturally be greater for the underwater welding. A contractor needing liability insurance may often be quoting for work that is of another actuarial rate.

Administration of the contractor’s office and his doing quotes involves much less risk than completing the contracted work does so per project general liability would certainly be a better value than a global policy that doesn’t address the differing needs.

Per project contractor general liability insurance isn’t an entirely new product but it isn’t a policy that most insurance underwriters haven’t been overly wanting to offer. Insurance agents prefer a long-term deal such as a life insurance policy that simply has premiums running to eternity and beyond. Insurance for crafters requires the insurance for only a fixed term and at a set rate. Per project general liability insurance is optimal for the contractor’s insurance and per project general liability insurance can still be found, and is certainly worth finding, even if it requires some extra looking.