Artisan contractors insurance gives protection against any financial losses that arise during work on a construction site.
Who is an Artisan?
An artisan contractor is a class of workers, typically known as casual contractors. This title refers to a number of occupations that involve skilled work using tools on the work site of a client. Popular examples of artisan contractors include the following skilled workers:
They are also experts in the areas of farming, air conditioning and central air, fire sprinkling and other miscellaneous work for general contractors under an agreement. Artisans provide construction specialities for commercial as well residential construction projects.
Finding Artisan Contractors Insurance
Artisan contractors may experience difficulty in purchasing suitable, yet affordable artisan contractors insurance because they are challenged with a wide range of liabilities and potential risks that could result from the construction process. There are also many factors and laws surrounding artisan contractors insurance such as various legal and regulatory environments in certain states. If you are having a hard time finding affordable artisan contractors insurance, fill out a qoute form and contractorsliability.com will shop around for you!
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Artisan’s Risks while Acting as Subcontractor
Artisan contractors enter into different contracts with general contractors that will define the types of insurance coverage, limits of liabilities and specific endorsements. Due to these endorsements, substantial risks from the general contractor are transferred to the artisan who is working as a specialty contractor. This is why the situation creates wide ranging liabilities for the subcontractor. Also, general contractors are making risk transfers mandatory to specialty contractors who are undertaking construction activities for residential tract homes. Projects include multi-unit habitational structures, such as town-homes, condominiums, duplexes, and triplexes in states commonly known as “pain states.” The purpose of such endorsements is to restrict and limit the affordable insurance.
The Pain States
The “pain states” include the states of Arizona, Colorado, Florida, Washington, New York, California, Nevada, Louisiana, Oregon and Texas. In addition, there are a few regions in states where distinct litigious concerns are faced, such as the Cook County 3 and the five boroughs of New York City.
Construction defect claims are the real and main source of pain for subcontractors. Carriers providing coverage for artisan contractors are defending the defect suits long since projects have been finished, which is not the intent of occurrence coverage. The insurers’ suit defending time and costs have painfully increased and due to this there are many carriers who now have become cautious in working with artisans situated in “pain states.”
For a reliable solution to this problem, artisan contractors are demanding legislators to formulate laws establishing guidelines and standards that speak for their rights and indemnity obligations relating to their own work. At the same time, insurance companies are conferring restrictive coverage endorsements to policies in order to provide reasonable coverage at affordable rates. Just like the artisan contractors looking for legislation to clarify their indemnity obligations, insurance companies are attempting to accomplish the same problem when it comes to their duty to defend the insured and indemnify claimants according to the true understanding of occurrence coverage.
Why You Need Artisan Contractors Insurance
The biggest personal property loss exposures could involve the damage of valuable machinery, tools and equipment that moves around from one job to the other and standard property insurance does not cover this equipment for contractors. These kinds of movable assets can be insured by contracts that insurers refer to as “floaters.”
The benefits of installer’s floater is that it covers all types of machinery, tools and equipment during transit, installation and testing at a customer’s construction site. Even construction materials may be covered, but the more typical coverage is for machinery and tools that only contractors install. The policy could be written to assure a single job or for multiple contracts, which means that the contractor should provide the insurer with all the necessary information about each new contract he undertakes. Floaters cover the tools and equipment wherever they are used and also cover tools like power drills, hand tools, hoisting machinery, and pumps.
Artisan Contractors Liability Insurance
There is always a risk that someone can claim that he is being harmed by the work the artisan contractor is carrying on. To cover this risk, artisans need liability insurance.
While working on a job as a subcontractor, the customer may demand from you to have Owners and Contractors Protective Liability (OCP) coverage. This protects either a customer or a general contractor from possible liabilities that could result from accidents or careless acts of a contractor hired to perform the job on behalf of the insured. The actual buyer of the insurance policy is the contractor, but the protection is for the benefit of the property owner or general contractor for whom the job is being performed.
Artisan Commercial Auto Insurance
If you are an artisan contractor and you hold a personal auto policy which has been provided for the coverage for your van, truck, or any other vehicle, this will not suffice. A personal auto insurance policy will not provide coverage for a vehicle that is used primarily in the activities of business. For securing such transports, artisans must have a commercial auto insurance policy. This may also be covered in the plans offered by the artisan contractors insurance providers. Click here to get the plans offered to by the artisan contractors insurance providers.
Workers Compensations Insurance
Every state has different rules about when an employer needs to provide workers compensation insurance. If an artisan has hired three or more workers, he should check with his state department of workers compensation to know if he is required to provide workers compensation insurance.
Choosing the Right Artisan Constractors Insurance
There are various types of artisan contractors insurance policies. It is highly recommended that artisan contractors check to make sure all the necessary requirements are fully met. If the process is too overwhlming for you, you can contact us about artiscan contractors insurance, and we will advise you on your best options.