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Wednesday, 10 August 2011

Construction Insurance For Small And Large General Contractors

By Scott Lee


Determining what you want to do for your construction insurance can be a time consuming endeavor. In starting the research process you need to determine what type of coverage you need for your business. General contractors and Independent contractors typically need general liability and workers compensation.

General liability protects the contractor in the event he or she is sued for any reason. A typical policy covers; indemnity, settlement of reasonable claims and effects of breach. When selecting which coverage to purchase, determine what your liability needs are for your type of business.

If an insured is held liable for an incident, the indemnity clause in the liability coverage will pay for any cost associated with this incident. In order to prevent a law suit, there exists an option in coverage called Settlement of reasonable claims. This is money that the provider pays out to the claimant in order to prevent them from taking the case to trial. In the event that the carrier breaches the contract with the insured, an effects of breach can be included in the policy to handle such situations.

In the event that an employee is hurt on the job, a workers compensation policy can be purchased to cover costs associated with such an injury. Workers Compensation policies pay the employee for medical treatments needed to repair an injury. The options available in this type of coverage can depend on where the employer is located.

It is the employers responsibility to pay for this type of coverage for each employee. In some locations it is against the law for a company to not offer this coverage to an employee of their organization. If an employee is injured on the job, and the employer does not have workers compensation, there is a possibility that legal action will be taken toward the employer. Typically, in cases such as this, it will be the local jurisdiction or state government that will file a suit.

Carriers can fall under different structures. They can either be admitted carriers or non-admitted carriers. The difference between the two are whether or not money is set aside by the insurer, Admitted, or if it is not set aside, non-admitted. In determining which option is better, depends on what the needs are for your business. These types of carrier classifications do not exist every where. You will need to check with your particular jurisdiction to determine if these types of classifications exist.

The cost for each type of policy will depend upon the coverage needed. Each carrier bases their prices on the basic aspects of each policy. If you need more extensive contract liability coverage, you may end up having a higher monthly premium. If your coverage need is not as extensive, your monthly premium will be lower.

Construction insurance quotes are widely available to places of General Contractors. Determine your organizations needs, level of coverage, type of coverage and then begin speaking to the insurance providers that can offer you their services. Typically, the coverage that is needed by general and independent contractors are liability and workers compensation. To determine what your company needs, talk to your local jurisdiction and ask them what is required by law for your company to provide.




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