A contractors liability insurance covers its consumers liability exposure achieving maximum protection and peace of mind. Contractors on the other hand must have this type of insurance to continue on working because most states require this policy for safety. It’s more like a guarantee on the contractor’s part, so it is really convenient for a contractor to get one. It also covers your employees but not your subcontractor if you happen to work with one.
If you don’t have one and you’re curious on how it works, you could always utilize the internet. It is free, fast and accurate. It basically holds every information there is on anything including commercial general liability insurance so you won’t have problems finding the best company to give you an offer. Be sure to get a pen and paper and make a list of companies and their offers for you to have a better view of your choices.
Don’t settle for the first offer you come across with, there’s no such thing as love at first sight in insurance so make sure to explore your options. Here’s a list of requirements to get you going:
- Contractor license number
- Company type (corporation, sole proprietorship, LLC, joint venture, etc)
- Years of experience
- A description of all the work you will perform as a contractor and all the work you will subcontract
- The percentage of residential and commercial work you do
- Number of full time and part time employees
- Annual payroll (not including owners or clerical workers, subcontracting costs, and gross sales
- If you’ve had any claims in the last 3 years
- Who your current carrier is and when that policy expires
Be sure to check out your chosen company’s profile before you sign anything. Check their financial strength and capabilities. This same effort should also be applied by those looking for liability insurance for small businesses.