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construction workersContractors insurance is one form of insurance that most business owners do not really understand, but that should not be the case. The questions below will help contractors understand this form of insurance better.

What is contractors insurance?

Contractors insurance is a policy taken by a general contractor. It protects the contractor from lawsuits that may arise in the event of an accident that results to an injury to a person not employed by the construction company insured. The policy generally covers settlements, medical costs, property damage, legal fees and even compensation for loss of life.Who needs contractors insurance?Contractor insurance is beneficial to general contractors and even subcontractors. It is available for different industries in different forms such as handyman insurance, electrician insurance, construction insurance and others.

Is contractors insurance a requirement for contractors?

This varies by state; in some places it is mandatory while in others it is not, but it is obviously beneficial to have. In fact, contractors who are not covered by this policy may not get as much contracts as those who do. Even those who deem this type of insurance to be expensive should take it because it is worth it in the long run.

What are the other benefits of contractors insurance?

Obviously, the major advantage is coverage for lawsuits that may be leveled against a contractor. However, there is also the additional psychological benefit of peace of mind. When you know you are fully covered, you can go around your usual business without worrying about accidents.

Is contractors insurance customizable?

Yes, it is. Different contractors can customize their policies to cover the specific risks inherent in their respective industries. In case the insured risk occurs, the contractor gets to pay a deductible and the insurance company settles the rest of the percentage.

What is the coverage limit?

There is no single limit of liabilities contractors are obliged to have across all industries. The limit depends on the type of work being performed, and in most cases, it is the clients who dictate the limits of the coverage in the contract.What is contractors all risks insurance?

As the name suggests, contractors all risks insurance covers all types of risks that may befall a contractor. It is common in the construction industry and is normally under the names of both the contractor and the client, and even includes public liability insurance.
The above questions and answers cover most issues to do with contractors insurance, but it is not exhaustive. To know more about Houston business insurance and how you will benefit, give Smith Davidson Agency a call today at 713-771-3973.
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Apartment building insurance said...
I like your informative blog about contractors insurance.
FRIDAY, APRIL 05 2013 3:11 AM

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