Home Improvement Contractor - Licensed Contractors - Help with contractors liability insurance?

Help with contractors liability insurance?

Hi, i've just set up a new construction company and need to look into contractors/public liability insurance/assurance???!!! Basically i dont have a clue about it!!! Is there anyone out there who can guide me in the right direction...i've heard it could be ridiculous sums of money so any help on cost effective solutions would be much appreciated. Cheers.

Public Comments

Hiya: You really need to get an agent that DOES have a clue about contractors coverage. I can tell you from handling contractor losses that there are ALL kinds of coverage forms that you will need. If you don't know what is available - you could be left without coverage you really need. Things like: > Contractor's equipment. You need to schedule any heavy duty equipment and tools in excess of $2500. These kinds of things can be listed on an Inland Marine policy. If the insurance company you choose offers coverage for your employee's tools - I would recommend getting that. One of the biggest losses contractor's have is Theft (of tools or equipment) > Contractor's hired/borrowed endorsement. This provides coverage when you rent heavy duty equipment > You will need a GL policy (General liability) with substantial limits....and a PLUS endorsement if offered by the insurance carrier you go with Is it going to cost a lot? Depends on your frame of mind. is $10k a lot to pay for coverage...or do you want to end up owing $350k for an accident? Plus - most people are not going to hire a Contractor unless they get your Certificate of Insurance providing the limits they require in order to offer you the job. They may even require you to add them as an additional insured on your policy. Better safe than sorry, right? Goodluck with your company. ~jifr!
if you have an accountant he/she will keep you right on this
Yes, contractors insurance is really expensive, depending on the type of work you're doing. Companies aren't exactly falling all over themselves to write contractors - it's a high loss profession. You need to start with the guy that writes your car/house insurance, he can most likely set you up with business insurance as well - or at least refer you to a local, independent agent who can set you up.
First off, don't be afraid because there are agencies out there that SPECIALIZE in writing insurance for contractors. Secondly, it is not always expensive unless you compare it to the amount someone would pay to insure their house. This is a business and as a business, your expenses are going to be greater in general and insurance is no different. Public Liability, also referred to as General Liability is a coverage that applies to damage or injury caused by your negligence. The type of construction work you do can greatly affect the premiums that you end up paying. You will also want to consider getting Workers Compensation, Equipment Coverage and Commercial Auto coverage as you get bigger. Other than that, my advice to you is to get an independent insurance agent that seems to know what their talking about and can speak to you in terms you can understand without throwing a lot of fluff at you. Good luck!
the best bet is to see a local broker about cover. Unless you are intending roofing/ scaffolding work as specific contracts then the premiums for a small business are not too bad - you can generally get a per-capita policy for about £100 for yourself and £200 for each employee. You should also look at contractors all risks insurance - be prepared to pay £500 - £1000 if you have only a small number of employees You can get a guide by looking at www.portwood.co.uk/index.htm and select the liability option in the drop-down menu near the bottom of the page.
Hi Funny enough I have just recommended the same Insurance Broker to another question asked about Liability Insurance, they specialise in Liability Insurance's and Contractors Liability is one of them, there website address is - http://www.oakland-insurance.co.uk I'm sure they will be able to give you a cheap quote and offer you some advice etc. Good Luck.