For contractors, one of the most important things they can do to protect their business is to get insurance. One of the most common insurance policies that most contractors get is general liability insurance.
In order to get the best of what general liability insurance has to offer, here are some mistakes contractors need to avoid.
- Not Understanding The Risks and Consequences Of Loss
Many business-owners and contractors often regard insurance as simply an additional and unnecessary cost since they believe claims will never be made on them. And when disaster strikes, they’d be caught off-guard and end up with more expenses. Therefore, it’s important to get insurance and understand your policy very well.
This is another huge mistake that contractors should definitely avoid. There are different types of policies in the market and each policy is designed to meet the different needs of the user. When choosing a coverage plan, it’s important to get comprehensive coverage at a reasonable price.
- Not Checking The Exclusions
The exclusions on an insurance policy are the events or perils that are not covered under the current policy. There are several small work-related issues that contractors need to deal with and oftentimes, these issues are left uninsured. Thus, it’s important to check the policy exclusions to determine which events aren’t covered and what can be done about it.
- Not Insuring Your Sub-Contractors
Most contractors work with sub-contractors in order to get work done faster and more efficiently. If an accident occurs with the subcontractor, you’re responsible for them. This is why getting a general liability insurance that offers coverage for contractors is a good idea.
- Changing Insurance Providers All The Time
Many insurance providers offer discounts for their loyal customers and if a contractor jumps from one insurance to another, they lose that chance. Also, it doesn’t give them enough time to review or evaluate the effectiveness of their coverage.
To secure your business with contractors insurance, please fill out the form below.
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Scurich Insurance
320 East Lake Avenue, PO Box 1170
Watsonville, CA 95077-1170
Office: 1-831-722-3541
Toll Free: 1-800-320-3666
Email:[email protected]
This article is courtesy of insuranceunit.com dated Jan 12, 2012
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Umbrella Insurance refers to a liability insurance policy that protects the assets and future income of both people on their primary policies. It is distinguished from excess insurance in that excess coverage goes into effect only when all underlying policies are totally exhausted, while umbrella is able to “drop down” to fill coverage gaps in underlying policies. Therefore, an umbrella policy can become the primary policy “on the risk” in certain situations. The term “umbrella” refers to how the policy shields the insured’s assets more broadly than primary coverage.
Typically, an umbrella policy is pure liability coverage over and above the coverage afforded by the regular policy, and is sold in increments of one million dollars. The term “umbrella” is used because it covers liability claims from all policies underneath it, such as auto insurance and homeowners insurance policies. For example, if the insured carries an auto insurance policy with liability limits of $500,000 and a homeowners insurance policy with a limit of $300,000, then with a million dollar umbrella, the insured’s limits become in effect, $1,500,000 on an auto liability claim and $1,300,000 on a homeowners liability claim.
Umbrella insurance provides broad insurance beyond traditional home and auto. It provides additional liability coverage above the limits of homeowner’s, auto, and boat insurance policies. It can also provide coverage for claims that may be excluded by the primary policies.
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Scurich Insurance
320 East Lake Avenue, PO Box 1170
Watsonville, CA 95077-1170
Office: 1-831-722-3541
Toll Free: 1-800-320-3666
Email:[email protected]
Read more
