General Contractors Insurance

1. General Contractors Insurance Coverages to meet your business needs

2. Why is general contractors' insurance necessary? • The Centre for Construction Research and Trainingstates that accidents in the construction sites account for 6-9% of the project costs. • General contractor Insurance protects you, your employees, and tools and equipment from risks

3. Who needs general contractor insurance? You need general contractors' insurance if you work as a:  • Contractors  • Subcontractors   • Independent tradesman   • Project supervisors  • Estimators  • Engineer and architect  

4. What coverages do general contractors need? The insurance needs of the general contractors vary from individual to individual. ​ We will walk you through policies that you need in order to cover your business.

5. Business Owners Policy • A business owners policy is a convenient policy that incorporates property and liability insurance into a single policy.  • It protects your business against claim of:   • Bodily injury • Property damage:  • Business interruption expenses and loss of income  • Defense costs for slander and defamation  • Example: A flood ruins your office. BOP pays for the repair of damaged properties. It also compensates for the loss of income while the business was interrupted.  

6. Professional Liability Insurance Professional liability insurance covers the legal fees, settlements, and judgments from client lawsuits alleging poor service. It offers liability coverage for claims resulting from:  Errors and oversights Failure to deliver promised services Negligence in providing services Example: Claims arising due to reinforcing a faulty structure would be covered by professional liability insurance

7. Builders Risk Insurance • Builders risk insurance covers any damages caused to a property still under construction. • It covers expenses arising from:  • Vandalism   • Onsite theft   • Weather

8. Commercial General Liability (CGL) Insurance • Commercial general liability insurance protects business over any customer injuries, damage, and related lawsuits. Commercial contracts and leases often require CGL. • CGL Insurance provides coverage for:  • Bodily injury  • Property damage   • Personal injuries 

9. Inland Marine Insurance • Inland marine insurance protects properties while in transit. If any contractor loses the machines from a vehicle or jobsite, inland marine insurance will cover the loss. • The policy covers:  • Properties that are in transit.  • Goods you are holding on for a client.  • Tools that frequently move from one place to another.  

10. Ocean Marine Insurance • Ocean marine insurance protects goods that cross international borders as well as any domestic marine shipment. It covers three properties: hull, freight, cargo, plus liability from oversight. • This policy provides coverage for:  • Loss of cargo • Loss of revenue • Damage to the hull

11. Business Interruption Insurance • Business interruption insurance covers any lost income when your business is temporarily closed due to a covered peril. • The policy covers for losses occurring due to following reasons:  • Fire  • Theft  • Windstorm  • It is not sold on a standalone basis. But is bundled with BOP or commercial property insurance.

12. Commercial Property Insurance • Commercial property insurance protects a business's assets such as inventory, office equipment, tools. • It covers business property in case unpredictable events such as:   • Fire  • Explosion  • Theft  • Windstorm  • Riots  • Flood 

13. Commercial Auto Insurance • Commercial auto insurance provides protection when work vehicles are vandalized, stolen, damaged, or involved in a collision. • Commercial auto insurance provides coverages for:  • Property damage • Bodily injury • Collision

14. Workers Compensation Insurance • Workers compensation insurance represents a compromise between employees and employers about work-related illnesses and injuries.   • The coverages include:   • Medical Benefits • Income Benefits • Death Benefit • Burial Benefit

15. What are some endorsements you can add to general contractors' insurance? Based on your needs, here are some endorsements you can add to construction insurance

16. Contractors equipment insurance • This insurance protects valuable tools and machinery against any damages while on the job. These tools include: • Saws • Pumps • Compressors • Other portable equipment. • This policy provides coverage for:  • Small tools  • Machinery less than five years old  • Mobile equipment 

17. Pollution insurance Pollution insurance helps to protect your business financially from any clean-up costs, legal fees, and provides coverage for medical expenses. 

18.  Contractual Liability Insurance • Contractual liability insurance provides a claim against liabilities that policyholders assume when entering a contract.   • Example: If you have undertaken a state government’s project, they require you to be responsible if someone gets injured in the construction site. The state government will not be guilty, as you have agreed to take the liability and indemnify the state.  

19. How much does general contractor insurance cost? • Many factors impact the general contractors' insurance costs. These include:  • Location of business  • Number of employees  • General contracting services offered  • Revenue  • Business equipment and tools 

20.  As a general contractor, the responsibility for monitoring the quality of all work performed by all the hires falls on your shoulders.​ ​